Understanding Credit Control & Collections

Cash flow management is vital to the health of your business. The oft-used saying, `revenue is vanity, profit is sanity but cash is king` remains sage advice for anyone managing company finances. To put it another way, most businesses can survive several periods of making a loss, but they can only run out of cash once.  The importance of cash flow is particularly pertinent at times when access to cash is difficult and expensive. Cash flow management is an important discipline. Failure to monitor credit, assess working capital – the cash tied up in inventory and monies owed – or ensure cash is available for investment can hamper a company’s competitiveness or cause it to overtrade

This two-day course is designed to introduce all staff of Main one Cable involved in the credit control process to rudimentary principles and best practice in Credit control and collections. The programme will also benefit other experienced staff who wish to refresh their skills. In addition any member of the accounts department who requires a knowledge and understanding of credit control process will benefit from this course.

Course Objectives 

At the end of the course, participants will be able to:

  • To improve collection performance by having confidence in dealing with external customers and internal business colleagues
  • Understand Main one credit policy and their role in implementing the credit policy
  • Understand target setting and income projection to pre-empt debt collection issues
  • Analyse the portfolio of debtors and creditors to enhance time management in credit management and debt recovery
  • Develop effective negotiations techniques in order to maximise the rate of successful debt collections
  • Maximise debt collection strategies by gaining a basic understanding of the legal systems when debt collection fails.

Who Should Attend

  • Debt Recovery Staff
  • Billing/Collections Staff
  • Credit Staff/ Administration staff
  • Finance Officers

Course Outline

Understanding the Credit Function

  • What is Credit? Partnership and the trading relationship
  • What are our overall objectives?
  • How important is our role?
  • Terms and Conditions – Importance and key elements
  • Organisation of the Credit Function
  • Your Role in the Credit Management Process
  • Understanding the Importance of Cash-flow
  • Costs of outstanding debts to the Business
  • Making effective use of your time 

Know Your Customer

  • Pre collection considerations –
  • Targeting & Prioritising your customers
  • Identifying Customers who can’t pays  vs Won’t pays
  • Warning Signs

Receivables Administration

  • Importance of Planning
  •  Measuring Receivables
  •  Query Management  - Internal and External customers
  • Monitoring Performance
  • Reporting receivables

Collecting the Cash:

  • Overview of the collection system
  • Tools for collecting
  • Categorising your customers and timetables
  • Strategies for collection
  •  Dealing With Difficult Debts and Excuses
  • Overview of the legal options available
  • Practical Tips for improving debt collection

Psychology of Collections 

  • Selling the need to pay 
  • Attitudes – I’m OK, you’re OK 
  • Behaviour - Adult, Parent, Child 
  • Assertiveness – what is it? 
  • Personality - Comfort Zones 
  • Dealing with angry people 
  • Some handy tips
  • Staying Confident and Assertive: 
  • Identifying individual personality styles
  • Analysing Aggressive/Submissive/Assertive behaviours
  • Selecting the most appropriate approach

Telephone Collection Techniques

  • Smarter Collection Calls
  • Structuring the call
  • Drilling down and gaining commitment
  • Staying in Control
  • Role Play on typical situation

Introduction to Negotiation and Influencing Skills

  • The Skill of Negotiation and influencing
  • Dealing with Cash-flow problems
  • Working out payment plans
  • Negotiation checklist

Location, Pricing and Date

Contact Capworth for details. The Capworth Training team will take steps to ensure that in house programmes are run at a time that suits you.

Contact our client liaison team to discuss running this programme in house at your preferred location.

Training Schedule for Other Programmes. Click below for details.