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ProspenAfrica | Training and Consulting Services Provider

Debt Collection, Recovery, Negotiation, and Credit Control Management

5 Day Training

Dates: 12 – 16 August | 19 – 23 August | 21 – 25 October | 04 – 08 November 2024

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.

This 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.

Finance Courses

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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