Credit Management2016-10-10T13:04:54+00:00

Potential Risk & Opportunities

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[accordion-item title=”Key Takeaways”]

  • Develop effective credit policies that meet company’s objectives.
  • Use financial and non-financial analysis to assist in making the credit decision.
  • Define the function of Accounts Receivable (AR) and its role in organizations.
  • Maintain effective collection policy.

Who should attend

This highly practical program has been specifically designed for:

  • Accounts Receivable (AR) department managers
  • Credit managers
  • AR staff
  • AR and Revenue accountants
  • Credit officers
  • billing and collection clerks
  • AR specialists
  • Professionals in accounting, finance, operations
  • Chief Accountants
  • Finance Managers
  • Financial Controllers
  • Sales staff who interact with Accounts Receivable and credit management department

[accordion-item title=”Course Outline”]

Credit Policies Management

  • Credit Department Responsibility
  • Factors Affecting Credit Policies
  • The Five Cs of Credit
  • Non-Financial Factors Affecting Credit Decision
  • Outline of a Credit Policy
  • Review New Accounts
  • Re-Evaluate Existing Accounts
  • Financial Statements: What to Look for
  • Analyzing Selected Financial Ratios
  • Setting the Credit Limit
  • Establishing a Profitable Relationship with the Customer
  • Meeting the Needs of the Customer

The Billing Process

  • Efficient Billing Process Means Faster Collection
  • Preventing the Fatal Mistake: Sending the Bill with Errors
  • The Use of Technology
  • Impact of Up Front Operations on Billing
  • Best Practices in Billing

You Made the Sale, It’s Time to Collect your Money

  • Cash: It’s Worth your Efforts
  • Tips, Techniques and Guidelines for Faster Collection
  • Importance of Setting a Collection Policy
  • Using Different Approaches in Collection
  • Strategies in Dispute Management
  • Best Practices in Collection

The Relationship between Sales and Credit

  • Breaking the Ice
  • Maintaining Credit Sales Relationship
  • Role of Sales in Issuing Credit and in Collection

Accounts Receivable Process Analysis

  • Improving the Quality of Accounts Receivable
  • Aging of Accounts Receivable and Bad Debts Reserves
  • Alternatives in Computing Bad Debt
  • Reducing Bad Debt Write-Offs
  • Calculating Accounts Receivable Turnover
  • Calculating Days Sales Outstanding (DSO)
  • Calculating Best Possible Days Sales Outstanding (BPDSO)
  • Collection Effectiveness Index (CEI)
  • Analyzing the Operating and Cash Cycles

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Course Director

Mirza Farrukh Baig, FCA

Certified in Entrepreneurship

The benefit of learning it from career banker is that you only get what is need on job, with no irrelevant bookish stuff!

Farrukh is a qualified Chartered Accountant and a career banker. He has over fifteen years of professional experience in SME credit, banking, accounting, audit, finance and management consulting.

He has served for eight years in a leading commercial bank in UAE where he was instrumental in strengthening the SME credit risk unit. Apart from approval of banking facilities for SME clients he played an instrumental role in developing and implementing the SME credit risk policy of the bank. Apart from looking after SME credit risk function, Farrukh was also involved in corporate lending decision making and served as a member of Central Credit Committee of the bank. He has been part of large corporate lending unit looking after syndication, services segment, marine, precious metals and contract financing. Currently he is the CEO of Lynchpin Training & Consulting. Farrukh is a Fellow member of the Institute of Chartered Accountant of Pakistan (ICAP). He has been awarded the gold medal for outstanding performance in his CA final examination, by ICAP.