Award: Credit Management (Trade, Export and Consumer)

Summary

This award 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