Debt Collection, Recovery, Negotiation, and Credit Control Management
5 Day Training
Dates:21 – 25 October | 04 – 08 November 2024 | 03 – 07 February 2025
Locations: Safi Suites and Conference Centre, East London
Platform: Available In-Class / Online
Price: Available on Request
Course Introduction
Debt collection involves pursuing overdue payments from businesses or individuals. Organizations that specialize in this process are known as collection agencies or debt collectors, and they work on behalf of creditors, often for a fee or commission. Effective debt collection and recovery are crucial as cash flow issues can lead to significant organizational challenges. Although the terms debt collection and debt recovery are often used interchangeably, they have distinct differences.
Prospen Africa’s Debt Collection, Recovery, Negotiation, and Credit Control Management course is designed to provide comprehensive knowledge and skills in debt collection, recovery, negotiation, and credit control management. It aims to equip participants with the necessary expertise to take on higher responsibilities within their organizations, fostering growth and stability.
Course Objectives
The key objectives of this Debt Collection, Recovery, Negotiation, and Credit Control Management course are 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 necessary precautions are understood and practiced by all employees organization-wide.
Establish stringent guidelines for onboarding customers or other finance-related functions to prevent issues in loan issuance and other support.
Train other professionals on best practices and concepts of debt collection, recovery, negotiation, and credit control management.
Negotiate, on behalf of their organization, with debtors to recover the maximum amount possible, thereby supporting organizational stability and growth and establishing themselves as talented professionals capable of handling 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 organization, supporting their career progression.
Who should attend?
Strategic leadership of an organization responsible for establishing and implementing high-level decisions.
Finance and loan managers responsible for financial transactions and loan issuance.
Accountants and other executives who need to thoroughly understand credit control management.
Collection agency members who wish to enhance their knowledge of related aspects.
Legal and financial advisors of organizations involved in legal or financial leakage issues.
Any other professionals interested in knowing more about debt collection and recovery.
Training Methodology
Our diverse instructional approaches ensure effective learning:
– Lectures & Presentations: Engage with expert-driven, stimulating content.
– Course Material: Access well-crafted supporting resources.
– Group Work: Collaborate on discussions and case studies for practical insights.
– Workshops & Role-Play: Participate in immersive, scenario-based activities.
– Practical Application: Focus on applying theoretical knowledge in real situations.
– Post-Training Support: Receive extensive support after training for skill implementation.
Training Outline
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 negotiation
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
Centralized 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 creditors
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
Terms 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 limits
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
Probability of default
Loss given default
Exposure at default
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