Award: Trade Credit Management

Summary

The award provides an understanding of the concepts, processes and techniques that underpin best practice across the trade credit environment.

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