Financial Controllers / Credit Controllers/ Accountants/ Managers/ Accounts Receivable Personnel/ Administration Personnel involved in the credit function.
Course Outline :
CREDIT MANAGEMENT Introduction Cost of having credit to customerPurpose of credit policy and factors to be consider
The importance of credit management
EFFECTIVE CREDIT MANAGEMENT Methods of assessing credit riskAssessment of credit worthiness- 5 CHow to develop a credit rating system Work out credit limit and risk categories
In depth evaluation of an individual . His net credit worthiness
QUANTITATIVE TECHNIQUE Analysis and interpretation of working capital ratioAnalysis and interpretation of quick asset ratioSales per working capital ratioDebtor turnover ratioCreditor turnover ratioFixed asset to current asset ratio
Working capital assessment and financing requirement
QUALITATIVE TECHNIQUE The impact of company structureCompany historyPayment historyCredit checks, bank and other suppliers Information from statutory documentsForm 24 and 49 Economic environment
Industry /market intelligence
SOURCES OF CREDIT INFORMATION AND SETTING UP A CREDIT CONTROL SYSTEM Various sources available Assessment by inspection of premises and interview of customers
Steps to take before approving limit and authorizing delivery.
EFFECTS OF GRANTING LONGER CREDITExtra financing to fund additional debtorHigher credit riskRequired rate of return on investment in debtorFinancial impact on income statement
Discount policy
DEBT COLLECTION AND RECOVERY TECHNIQUE Telephone collectionStatements , reminders and final demand"Key Account " customerAged debtor listEstablishing a procedure for overdue debtPersonal visits Use of outside agencies
Legal proceedings
RISK MANAGEMENT OF FOREIGN CUSTOMER Determining and quantifying risk Risk management techniques for oversea customerThe problem of foreign exchangeMaintain a foreign currency bank account Netting the transaction Forward exchange contract
Money market hedge
PITFALLS TO AVOID IN CREDIT CONTROL Poor documentation Ambiguous sales terms and conditions
Third party transaction
GOOD PRACTICE IN DEBTORS MANAGEMENT Look after key accountManaging time scale Trade credit insurance Invoice discounting
Debt factoring
IMPORTANCE OF DEBTOR COLLECTION IN CASH FLOW FORECAST Format of the forecast Forecasting assumptionForecasting cash inflow /outflows
Planned management decision
Course Leader
Mr. Tam Fook Cheong is a fellow member of the Charted Association of Certified Accountant (FCCA), Associate Member of the Chartered Institute of Management Accountant (ACMA) and a Chartered Accountant of the Malaysian Institute of Accountant (CA). Mr. Tam has more than 25 years of working experience in Finance, Accounting & Administration and has held various Managerial Position in the Oil and Gas industry.Mr. Tam has been a regular speaker for various seminars, workshops as well as in-house training organized by Management Consulting firm and Australia Society of certified public Accountant. As a prolific trainer, he has presented numerous papers in Accounting and Corporate Finance related topics throughout Malaysian and Singapore. In addition, he has been lecturing extensively in various colleges for the past 20 years specializing in Strategic Finance Management, performance Measurement, Financial Reporting for various professional examination, namely ACCA, MICPA and ICSA. Currently, Mr. Tam is also a local counselor in the Finance Module of MBA for a distance learning program and MSC Finance.
Course Fee: CLAIMABLE UNDER HRDF / SBL SCHEME
RM 950.00 per participantRM 900.00 Per Participant for 2 or more participants (Fees are inclusive of tea break, lunch, course materials and certificate of attendance)
Credit Management & Debt Recovery : Strategies & Practices
