Successful Credit Control

Course overview

Why you should choose ‘The Effective Credit Control Executive’ written self-study course

Credit control is a big responsibility in any organisation. There is a way to ensure you’re up to the task. With this distance learning course, in just 6 modules you’ll bring yourself fully up-to-date on all the latest techniques for assessing credit, insurance, risk avoidance and successful collection.
You’ll learn everything you need to know about financial statements and the cost of credit, establishing sound credit policies and the latest techniques of efficient collection. You will also get fully up-to-date on credit agencies, factoring and insurance as well as some less usual chasing methods.
Critically, you’ll learn all about legal action, when to go ahead, and then precisely how to act to ensure a successful result. Lastly, the final module tells you everything you need to know about bankruptcy, winding up, administration and receivership.

This course will benefit you if you want to…

• Know what the law means and what you need to do
• Minimise your exposure to bad debts and losses
• Stay ahead of people trying to outwit you
• Keep up-to-speed with all the latest techniques for mitigating risk
• Play a significant part in keeping your organisation profitable

Who should enrol?

• All credit control executives in organisations of all sizes
• Financial managers and controllers
• Finance directors of SME’s
• Owner-managers of small businesses

This distance learning course will:

TEACH you all you need to know about financial statements and the cost of credit to help you establish sound credit policy and efficient collection
FULLY update you on credit agencies, factoring and insurance including some less usual chasing methods
AID you in minimising bad debt and losses to ensure a steady cash flow and profitable bottom line
INFORM you of all you need to know about bankruptcy, winding up, administration and receivership
SUPPLY an invaluable appendix of legislation relating to statutory interest on late payment of debt

Course modules

Module 1 – Understanding Financial and Management Accounting and Cash Flow

• Balance sheets
• What is a balance sheet?
• What do balance sheets reveal?
• Interpreting balance sheet profiles
• Profit and loss accounts
• What is a profit and loss account?
• What do profit and loss accounts reveal about a business?
• Cash flow statements
• If there are profits there must be cash
• Cash flow statements
• What can cash flow statements tell us?
• Accounting records and systems
• Why have accounting records
• Distinction between accounting systems and accounting records
• Accounting concepts, policies and standards
• Why do we need concepts and rules?
• Fundamental concepts and operation
• Accounting policies

Module 2 – Ground rules for successful Credit Control policies

• The cost of credit
• Possible savings related to profit
• Personal knowledge of the cost of credit
• The right attitude for credit control
• Bonuses and commission for staff
• Record the progress
• Measure the results
• The right credit policies
• Should you give credit?
• What nominal period of credit is allowed?
• What actual period of credit is allowed?
• What sanctions will you use?
• What collection methods will you use?
• What is a special case and who decides?
• Is there a dominant customer and if so, what policies are appropriate?
• Opening a new account
• Application for a credit account
• Trade references
• Bank references
• Credit limits

Module 3 – Credit Control systems and methods

• Effective paperwork
• An objective look
• Invoices
• Statements
• Order forms
• Letters
• Standard letters
• The final warning letter
• Individually composed letters
• Collection by telephone
• The right psychology
• Preparation for success
• The telephone call
• The effective conclusion
• Keep the history
• Overcoming excuses
• Paperwork
• Payment systems
• Delay in customers payment system
• Customer disputes payment terms that have been agreed
• Customer will not accept terms that have not been agreed
• Sources of information
• Obtaining good information
• Credit agencies
• Trade references
• Bank references
• Companies House
• Trade sources and your competitors
• Credit insurance
• In-house opinion
• Your own records

Module 4 – Credit Control using outside agencies and other techniques

• Credit agencies
• Choosing the right agency
• Credit agency charges
• Failings of credit agencies
• Reasons for problems
• Methods of obtaining information
• When to use credit agencies
• How to best use a credit agency
• Details of services available
• Non-recourse and recourse factoring
• Invoice discounting
• Some of the features of factoring
• Advantages of factoring
• Disadvantages of factoring
• Costs
• Detailed example of a factoring transaction
• Credit insurance
• Circumstances when you probably should and should not consider credit insurance
• Selection of risks to be insured
• Risks that can be covered
• Financial provisions in detail
• A guide to the cost of credit insurance
• Working with credit insurance
• Less usual chasing methods
• Personal visits
• EDI
• E-mail and fax
• The use of humour
• Publicity
• Stickers
• Direct debits and standing orders
• Bank transfers
• Credit cards
• Blacklisting
• Harassment
• Warning signs – danger imminent
• Danger signs
• Round sum cheques
• Conditions of sale
• The legal position with terms
• Display of conditions of sale
• The terms
• Advice to buyers
• The main terms affecting credit control

Appendix: legislation relating to statutory interest on late payment of debt

• Appendix: Companies House
• Companies House addresses
• Information available
• Method of identification
• Methods of obtaining information

Module 5 – Credit Control and legal enforcement

• Legal action – considerations prior to commencement
• Scottish law
• The significance of retention of title
• Have other steps been exhausted?
• Without prejudice offers
• Should you take legal action?
• Look at your conditions of sale
• Statutory interest
• Who to use
• Legal services
• Taking action
• Legal action – obtaining judgment
• Selection of route to follow
• Steps to winning judgment
• The claim form in detail
• Summary judgments
• Legal action – enforcing the judgment
• Enforcing judgment in a county court
• Warrant of execution
• Third party debt order
• Attachment of earnings order
• Charging order
• Appointment of a receiver
• Bankruptcy or winding up
• Order to obtain information
• The register of county court judgments
• The High Court

Appendix: Court fees payable in connection with legal action to recover debt

Module 6 – Credit Control issues in insolvency, bad debts and exports

• Winding up, bankruptcy, administration and receivership
• The threat of winding up and bankruptcy
• Procedures
• Wrongful trading
• The order of priority in the distribution of funds
• Administration
• Receivership
• Licensed insolvency practitioners
• Practical advice
• Bad debts
• Get back the VAT
• Look hard at the conditions of sale
• Consider enforcing retention of title
• Personal liability
• The legal process of liquidation
• And finally – learn the lessons
• Exports
• The law governing the sale
• Agreement of conditions of sale
• Methods of payment
• Documentation
• Factoring and credit insurance

Course contributor

Ralph Tiffin is a mechanical engineer who subsequently qualified as a chartered accountant and became manager in one of the largest international firms of accountants. He is now managing partner of an accountancy and consultancy practice. He has a wealth of experience with companies of all sizes in the UK and overseas. Work typically involves developing clients reporting and management systems along with appropriate management training and developing project appraisal processes and spreadsheets.

Roger Mason FCCA, FCIS, ACIB is a highly experienced company director and company secretary. His early career was with Midland Bank and the Ford Motor Company before becoming finance director of ITC Entertainment Ltd. He was, for 14 years, company secretary and finance director of a leading British greetings card company. He lectures on finance and business matters and has written a number of well respected books.

Past delegates’ comments

Past Delegate Quotes

‘Very useful’

Stuart Park, Credit Controller, Spaldings (UK) Ltd

‘It covered everything well in full and was easy to understand’

Trish Smith, Group Credit Controller, Alderley PLC

‘I found that the information was excellent’

Sharon Doherty, Group Credit Controller, AssetCo Plc

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Client portfolio

Our client portfolio for this course includes the following companies:

More information

The following documents are available for this course:

• Sample module [335kb]
• Course brochure [321kb]

Academy of Distance Learning in Business

ADLiB

The Academy for Distance Learning in Business (ADLiB1) has developed out of Falconbury’s pioneering work on short-course management and professional development.

As with the face-to-face training we do in our public and in-house programmes, our focus is on the practical and application-rich skills and techniques, which will enable individuals to develop their full potential as managers and professionals.

Our approach to distance learning is to use the self-study method at its best to make sure that you can flexibly acquire the knowledge and understanding of each chosen area in a way that suits you and your current work commitments.

ADLiB was set up to give a consistent approach across different subject areas, so that its users would know that our rigorous standards of excellence would be met in each course.

Every programme and each of the component modules is a combination of the training and learning expertise of Falconbury and input from its wide range of practically skilled writers and trainers. Where a course bears the ADLiB logo, you can be sure that our (and your) exacting standards will be met.

To learn more about how ADLiB and the courses can help you and/or your business call +44 (0)20 7729 6677

¹ ADLiB is the Academy for Distance Learning in Business and offers ‘best in class’, flexible self-study in key business, management and leadership via distance learning modules delivered directly to you, to work through at your convenience.

Ad lib is from the Latin ad libitum meaning ‘at one’s pleasure’ – we aim to make management and professional development enjoyable as well as worthwhile.

Ad lib could also be a loose latin short-form of ‘to the library’ – but in our case, we save you that trouble by using the best material available to us on each topic and assembled to give you maximum benefit.