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ACCOUNTS RECEIVABLE MANAGEMENT AND CREDIT RISK CONTROL

Market economy is a credit economy. The capability of credit management has become indispensable for the survival and development of companies. The question is how to improve credit awareness and the level of credit management to collect money sooner and improve cash flow? How to maximize sales, expedite money-collection and minimize bad accounts?

Training Objectives

Establish risk awareness
Work out rational policies for credit sales, accurately estimate the risk of credit sales, and determine the rational amount for credit sales.
Master the specific methods and techniques for receivables management and debts-collection.
Use credit management instruments
Establish a corporate credit management system.

Training Attendees

Finance manager, credit manager, sales manager
Credit staff or accounting professionals
Calling-in staff, sales staff
Relative staff in charge of credit or receivables


	Training Outline

	The first step in credit management —— Establish an effective credit management system
	The analysis of the current credit condition of the Chinese market
	Popular credit management methods used globally
	The effective “3+1+1” credit management system
	The function and structure of a credit department
	How to properly manage the relationship between the credit and sales departments
	Establish an effective credit management system and procedure
	- Credit application
	- Consignment approval, process of stop cease delivery and resume delivery
	- Reasonable passing of risk
	- Periodical credit evaluation
	- Consummate a credit management system through process design
	Credit management of program sales
	Customer information management
	Set up a normative customer file base
	Channel and method of customer information collection
	Methods for identifying customer risk
	- Principle of “5C”
	- Principle of “5W”
	- Principle of “CAMEL”
	Updating customer information on time
	Credit assessment method and rational credit policy
	Three steps in establishing a credit assessment model
	How to design a credit scorecard and operation examples
	Calculate the line of credit based on customer’s credit scale

	- Method of sales forecasting
	- Method of net worth
	- Method of solvency
	Design different credit policies for customers with different credit scales
	Analysis of credit cost
	Reevaluate the customer periodically and adjust the credit scale
	Establish a credit policy that matches the firm’s target
	Make use of risk management tools effectively
	How to accurately define payment terms in the contract
	Popular payment tools and corresponding risk control points
	Payment terms and tools in common use
	Methods to insure creditor’s rights
	Effective process coordinated with proper tools
	Account receivable management
	Account receivable management system and procedure
	- Procedure of collection
	- Procedure for discovering and solving dispute
	- How to assess credit and sales staff – Internal motivation system
	Is the size of account receivable reasonable?
	Key index in account receivable management
	System of bad debt reserve and write off
	Collection skills
	Identify the signal of default
	Four major rules on collection
	Rule of POWER
	Collection methods in different situations
	Other collection tools