Debt Collection, Recovery, Negotiation and Credit Control Management

The key objective of this Debt Collection, Recovery, Negotiation and Credit Control Management course is to empower professionals to—
• clearly understand debt collection, recovery, negotiation and credit control management
• define and establish strong credit control systems and processes to reduce the risks of defaulters impacting the organisation’s financial status
• draft simple, clear credit policies and other guidelines to ensure that the precaution needed is understood and practised by all employees organisation-wide
• establish stringent guidelines for onboarding customers or other finance-related functions to prevent problems in the issue of loans and other support
• train other professionals on best practices and concepts of debt collection, recovery, negotiation and credit control management
• negotiate, on behalf of one’s organisation, with debtors to recover the maximum amount possible, thereby supporting organisational stability and growth and establishing oneself as a talented professional to handle greater opportunities
• work with advanced tools and technology to enhance screening, monitoring, tracking and follow-up processes
• audit existing documentation and ongoing loan agreements to identify early risks and take actions accordingly
• possess supreme experience and multitasking abilities to handle greater responsibilities within and outside the organisation, supporting one’s career progression
Course Content
Types of Debt Collectors
• First-party agencies
• Third-party agencies
• Sale of debts
Debt Recovery Process
• Initial consultation
• Due diligence
• Issue of letter of demand
• Awaiting response and negotiate
• Filing of court papers
• Enforcement of court decision
Measures Reducing Bad Debt Recovery
• Thorough customer background check
• Safe customer credit limits
• Release of goods after payment clearance
• Shipping of goods after direct deposit payment
• Regular invoicing
• Clear payment instructions and terms on invoices
• Regular contact with customers
Effective Debt Collection Strategies
• Alternate but flexible payment terms
• Customer-oriented operations
• Up-to-date communications
• Applied analytics
• Centralised debt collection systems
Challenges Impacting Debt Collection Operations
• Increased focus of regulators
• Ineffective debt collection systems
• Inefficient customer segmentation
• Lack of proper tools
• Lack of a consolidated borrower-centric approach
• Multi-product, multi-channel, multi-debt obligations
Debt Collection Agency Functions
• Tracing creditor
• Negotiating
• Systematic follow-up
• Maintaining records
Methods of Debt Collection Agencies to Recover Debt
• Freezing accounts
• Property as security
• Wage garnishment
Effective Credit Policy Components
• Term of sale
• Credit extension
• Collection policy
Effective Debt Settlement Negotiations
• Start with reminders
• Have accurate information
• Do your research
• Stay professional
• Approach negotiations as equals
• Have a concrete minimum
• Require a counter-offer
• Confirm deal in writing
• Clearly explain ramifications
• Remember follow-up letters
Cash Flow Management
• Cash flow cycle
• Accelerating cash inflows
• Cash flow forecast
• Cash flow surpluses and shortages
Credit Control System Set-Up
• Clear credit terms and limit
• Check new customer credit scores
• Terms and conditions in writing
• Offer different payment options
• Consider discounts for early payments
• Send regular reminders
• Employ debt collection agencies
• Commence legal proceedings in time
• Buy trade credit insurance
Credit Risk Modelling Examples
• Financial statement analysis models
• Default probability models
• Machine learning models
Factors Affecting Borrowers’ Credit Risk
• The probability of default
• Loss given default
• Exposure at default

METHODOLOGY
The training methodology integrates lectures, interactive discussions, collaborative group exercises, and illustrative examples. Participants will acquire a blend of theoretical insights and hands-on practical experience, emphasizing the application of learned techniques. This approach ensures that attendees return to their professional environments equipped with both the competence and self-assurance to effectively implement the acquired skills in their responsibilities.

DATE:
1ST BATCH: 4th – 7th Mar,2025
2ND BATCH: 8th – 11th July,2025
3RD BATCH: 11th – 14th Nov,2025