Course Overview

Debt collection is the process of following up on payments due by debtors (businesses or individuals). Organisations specialising in debt collection are known as collection agencies or debt collectors. Collectors work on behalf of creditors to get debtors to clear pending payments, for a fee or commission.

Debt collection and recovery are extremely important because cash flow issues could lead to serious organisational challenges. A point to note is that though debt collection and debt recovery are almost used synonymously, there is a slight difference between the two.

This course will empower you with complete knowledge and information about debt collection, recovery, negotiation, and credit control management.

 

Course Objectives

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 organization’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

Who Should Attend?

·        Strategic leadership of an organisation responsible for establishing and implementing high-level decisions

·        Finance and loan managers carrying out their responsibilities involving financial transactions and issuance of loans

·        Accountants and other executives who need to understand credit control management thoroughly

·        Collection agency members who wish to enhance their knowledge of related aspects

·        Legal and financial advisors of organisations playing an important role when a legal or finance leakage issue occurs

·        Any other professional interested in knowing more about debt collection and recovery

Course Outline

The Debt Collection, Recovery, Negotiation and Credit Control Management course covers the following topics regarding debt collection, recovery, negotiation and credit control management:

Module 1 – Types of Debt Collectors

·        First-party agencies

·        Third-party agencies

·        Sale of debts

Module 2 – Debt Recovery Process

·        Initial consultation

·        Due diligence

·        Issue of letter of demand

·        Awaiting response and negotiate

·        Filing of court papers

·        Enforcement of court decision

Module 3 – 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

Module 4 – Effective Debt Collection Strategies

·        Alternate but flexible payment terms

·        Customer-oriented operations

·        Up-to-date communications

·        Applied analytics

·        Centralised debt collection systems

Module 5 – 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

Module 6 – Debt Collection Agency Functions

·        Tracing creditor

·        Negotiating

·        Systematic follow-up

·        Maintaining records

Module 7 – Methods of Debt Collection Agencies to Recover Debt

·        Freezing accounts

·        Property as security

·        Wage garnishment

Module 8 – Effective Credit Policy Components

·        Term of sale

·        Credit extension

·        Collection policy

Module 9 – 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

Module 10 – Cash Flow Management

·        Cash flow cycle

·        Accelerating cash inflows

·        Cash flow forecast

·        Cash flow surpluses and shortages

Module 11 – 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

Module 12 – Credit Risk Modelling Examples

·        Financial statement analysis models

·        Default probability models

·        Machine learning models

Module 13 – Factors Affecting Borrowers’ Credit Risk

·        The probability of default

·        Loss given default

·        Exposure at default

 

General Notes

·        All our courses can be Tailor-made to participants' needs

·        The participant must be conversant in English

·        Presentations are well-guided, practical exercises, web-based tutorials, and group work. Our facilitators are experts with more than 10 years of experience.

·        Upon completion of training the participant will be issued with a Foscore development center certificate (FDC-K)

·        Training will be done at the Foscore development center (FDC-K) centers. We also offer inhouse and online training on the client schedule

·        Course duration is flexible and the contents can be modified to fit any number of days.

·        The course fee for onsite training includes facilitation training materials, 2 coffee breaks, a buffet lunch, and a Certificate of successful completion of Training. Participants will be responsible for their own travel expenses and arrangements, airport transfers, visa application dinners, health/accident insurance, and other personal expenses.

·        Accommodation, pickup, freight booking, and Visa processing arrangement, are done on request, at discounted prices.

·        Tablet and Laptops are provided to participants on request as an add-on cost to the training fee.

·        One-year free Consultation and Coaching provided after the course.

·        Register as a group of more than two and enjoy a discount of (10% to 50%)

·        Payment should be done before commence of the training or as agreed by the parties, to the FOSCORE DEVELOPMENT CENTER account, so as to enable us to prepare better for you.

·        For any inquiries reach us at training@fdc-k.org or +254712260031 Website:www.fdc-k.org