The recognised standard

Unit: Credit Management (Trade, Export and Consumer)

Summary

Provides an understanding of the concepts, processes and techniques that underpin best practice across a range of credit environments.

Syllabus Topics

1.     Value of credit (10%)

  • Definition of credit
  • Cost of credit

2.     Organisation of the credit function (15%)

  • The credit department
  • Credit policy

3.     Credit customers and arrangements (35%)

  • Customers
  • Credit agreements
  • Documents

4.     Credit risk control (15%)

  • Risk assessment and control
  • Information sources and their value
  • Scoring
  • Insurance

5.     Credit documents and systems (10%)

  • Customer master file
  • Sales ledger system
  • Computerised systems

6.     Collections methods and legal action (15%)

  • Targets and use of resources
  • Methods
  • Dealing with problems
  • Legal procedures and use of third parties