This Credit Control and Risk Management course is designed for people who wish to gain an understanding of principles and practice of controlling credit and managing risk in commercial organisations. This course is a must for any small business, especially in the current economic climate.
No course pre-requisites
Contents
Unit One - Introduction to debt
When
is debt a problem?
Causes
of personal and business debts
Individual
personal circumstances that can lead to debt
Economic
factors that can lead to debt
Circumstances
that can lead to business
debt
Other
factors that can lead to debt
Types
of borrowing
Creditor’s
rights
Non-court
actions available to creditors
Collecting
debt through the court
Enforcing
the Judgement
How
long can a creditor pursue a debt for?
Unit Two - Consumer credit
What
is customer credit?
Benefits
of offering customer credit
Risks
of offering customer credit
Common
regulated consumer credit activities
Acquiring
consumer credit authorisation from the Financial Conduct Authority (FCA)
Preparing
an application for FCA authorisation
FCA
rules that must be followed
Business to Business Lending
Regulation UK
The
business’s credit policy
Customer
credit agreement
Implementing
good credit control procedures
Unit Three – Credit risk analysis
What is credit risk?
Types of credit risk
What is credit risk
analysis?
Types
of information used when analysing credit risk
Methods used to analyse
credit risk
Checking an individual
customer’s likely ability to pay back debt
Credit
reference agencies
Credit
reports
Credit
check results
How credit scores are used
FICO Scores
Checking a business
customer’s likely ability to pay back debt
Doing
more research
Obtaining
bank references
Contacting
other suppliers
Asking
for supplier references
Adopting
the pro-forma approach
Checking
published accounts
Obtaining
a credit report from a credit bureau
The
“5 cs of credit.
What
to look out for when credit checking business customers
Credit risk modelling
Types
of credit risk models
Mitigating credit risk
Applying
restrictions to the credit agreement
Diversifying
Credit
insurance and derivatives
Knowing when to end a business relationship
Unit Four - Factoring and Invoice Discounting
What
is factoring?
The
key parties involved in factoring
The factoring process
Characteristics of factoring
What
is invoice discounting?
The
differences between factoring and invoice discounting
Different
types of factoring and invoice discounting
Using factoring as a means to
reduce risk
Using invoice discounting as a
means to reduce risk
Disadvantages
of factoring
Charges
and payments associated with factoring
Unit Five - Negotiating with creditors
Determining the debtor’s position
Using
a flexible, fair and realistic approach to collection
Options
available to a customer who has debts
Tackling
secondary debts
Loan
consolidation
Debt
Management Company
An
Administration Order
Individual
Voluntary Arrangement (IVA)
Starting
the collection process
Negotiating
a payment plan
Recording
details of the payment agreement
Further debt recovery actions
Skills
required when negotiating and collecting debts
Unit Six - Business management
The manager’s role- Personal skills
Setting
objectives
Planning
Decision
making
Delegating
Motivating
Organising
Time
management
Managing People
Recruitment
Reviewing
progress
Development
Team
working
Building
an effective credit control team
Managing Information
Collecting information
Organising information
Communicating information
Managing Finance
Cost analysis and control
Financial information
The balance sheet
The profit and loss account
The cash flow statement
Budgeting
Study Method
The course is designed for study by distance learning at work or at home. Students receive course manual, assignments and studyguide plus tutor support by mail and email. You can start at any time and plan your studies over a period of up to one year from the time of enrolment.
Course Duration
Students may register at any time and have a full year to complete their studies. The course will take around 120 hours of study to complete.
Assessment
Each element is followed by a written assignment, which is submitted and then marked by your tutor. There is no external examination required.
Course Endorsement
At the end of this course successful learners will be given the option to receive a Certificate of Achievementfrom the Quality Licence Scheme and a Learner Unit Summary (which lists the components the learner has completed as part of the course).
The course has been endorsed under the Quality Licence Scheme. This means that Kendal Publishing Ltdhas undergone an external quality check to ensure that the organisation and the courses it offers, meet defined quality criteria. The completion of this course alone does not lead to a regulated qualification* but may be used as evidence of knowledge and skills gained. The Learner Unit Summary may be used as evidence towards Recognition of Prior Learning if you wish to progress your studies in this subject. To this end the learning outcomes of the course have been benchmarked at Level 4 against level descriptors published by Ofqual, to indicate the depth of study and level of demand/complexityinvolved in successful completion by the learner.
The course itself has been designed by Kendal Publishing Ltdto meet specific learners’ and/or employers’ requirements which cannot be satisfied through current regulated qualifications. The Quality Licence Scheme endorsement involves robust and rigorous quality audits by external auditors to ensure quality is continually met. A review of courses is carried out as part of the endorsement process.
The Quality Licence Scheme is part of the Skills and Education Group, a charitable organisation that unites education and skills-orientated organisations that share similar values and objectives. With more than 100 years of collective experience, the Skills and Education Group’s strategic partnerships create opportunities to inform, influence and represent the wider education and skills sector.
The Skills and Education Group also includes two nationally recognised awarding organisations; Skills and Education Group Awards and Skills and Education Group Access. Through our awarding organisations we have developed a reputation for providing high-quality qualifications and assessments for the education and skills sector. We are committed to helping employers, organisations and learners cultivate the relevant skills for learning, skills for employment, and skills for life.
Our knowledge and experience of working within the awarding sector enables us to work with training providers, through the Quality Licence Scheme, to help them develop high-quality courses and/or training programmes for the non-regulated market.
*Regulated qualification refers to those qualifications that are regulated by Ofqual / CCEA / Qualification Wales
