Improvement
Target audience
- Credit managers
- CFOs
- Finance managers
- Anyone interested in this topic
2 day
New training
Credit Management Training
Prerequisites
It is necessary to have a basic understanding of how to read a balance sheet and an income statement.
Objectives
◗ Assess the risks associated with the outstanding balances the company has extended to its customers.
◗ Conduct an effective and practical financial analysis of clients and/or prospects.
◗ Prevent delinquent payments and ensure long-term security of accounts receivable.
◗ Apply the fundamentals of debt collection procedures.
◗ Implement an effective accounts receivable process.
Training program
This program is updated in real time to incorporate the latest developments in customer risk management, cash security, prevention of business failures, payment guarantees, and management of accounts receivable performance.
◗ The Challenges of “Customer Credit”
– Understanding the Mechanism and Causes of Business Failure
✔ UNDERSTANDING | Explaining the Importance of Credit Policy Through a Few Calculations
– The “Credit Management” Function and Its Role in the Company’s Organizational Structure: The Impact of Credit Policy on Different Departments
– Current Challenges in Credit Management: Risk Control, Cash Optimization, and Working Capital Reduction
– The impact of inflation, economic pressures, and corporate failures on customer risk
– Legal regulations affecting the credit function: the LME, invoicing, statutes of limitations, etc.
◗ The Materialization of Risk: Customer Receivables
– Different Approaches to Customer Credit Exposure
– Useful Information Sources for Credit Managers: Financial, Legal, and Commercial Sources…
– The Fundamentals of Customer Risk-Oriented Financial Analysis
✔ APPLY | Practical Case Study: Solvency Ratios, Profitability Ratios, Default Risk…
– Determining Credit Exposure per Customer: Scoring Method
– Utilize scoring and decision-support tools
– Integrate financial, behavioral, and industry information into risk assessment
– Regularly update approved credit limits
✔ APPLY | Case Study: Implementing a customer credit limit, from customer analysis to determining the credit amount granted
◗ Tools for mitigating customer risk
– Contractual Tools: The Importance of Legal Documents Throughout the Sales Cycle
✔ UNDERSTANDING | Reflections on the General Terms and Conditions of Sale (GTC)
– Payment Guarantees: What Opportunities Are There? In what context?
• September 15, 2021 reform of the payment guarantee regime; real security interests: pledges, liens, etc.; personal security interests: surety bonds, first-demand guarantees
– Hedging and related tools: credit insurance, Dailly, factoring, payment delegation, etc.
– Payment methods
✔ EVALUATE | Summary of the advantages and disadvantages of the various payment methods
– Securing transactions and digital evidence (orders, confirmations, electronic signatures)
– Selecting appropriate guarantees based on the client’s risk profile
◗ The Basics of Effective Debt Collection
– Organization and effectiveness of written and telephone collection efforts
✔ APPLY | Illustration: Create a diagram of an effective collection process
– From pre-litigation to judicial collection: organization, responsibilities, and scope of actions
– Managing and evaluating external service providers
✔ APPLY | Drafting a policy for working with collection agencies
– Preventing disputes and promptly addressing customer complaints
– Using digital tools to optimizecollection efforts and track actions
◗ Optimize the company's credit management performance
– DSO (Days Sales Outstanding), a key indicator
– Measuring the impact of credit management on working capital and cash flow
– Key KPIs for Accounts Receivable: DSO, past-due rate, dispute rate, delinquency rate, risk coverage
– Building a dashboard for managing customer risk
✔ APPLY | Practical exercise: calculating DSO
– The Objectives of Credit Management-Oriented Monitoring
• Customer credit indicators and tools, collections indicators and tools, disputes
– Making Credit Management a Partner in Sales and Financial Performance
• Communication: from informational meetings to newsletters; training; the Credit Committee
✔ EVALUATE | Define an Action Plan to Be Implemented
Why choose this course?
Late payments weaken cash flow and increase working capital requirements.
This training course helps participants structure credit management, analyze creditworthiness, reduce DSO, manage outstanding receivables, and organize effective collection efforts, through to out-of-court or legal collection.
Teaching and assessment methods
Before the training: Submit your expectations via your online portal 15 days before the training begins and complete a self-assessment of your skills.
Teaching Methods: A variety of teaching methods to cater to different learning styles, encourage active participation, and reinforce learning through experimentation and practice.
Educational materials: presentation materials, reference materials (summary sheets, tables, etc.), and other resources available in your account.
During the training: theoretical concepts are alternated with examples drawn from real-life cases. Participants are given the opportunity to engage in role-playing exercises. Numerous practical exercises allow participants to demonstrate their mastery of the skills as the training progresses.
Training monitoring and evaluation: attendance sheet and certificate of completion. Immediate and post-training evaluations conducted using the LearnEval platform.
Price
€1,610, excluding tax