Credit Management (Trade Export and Consumer)

46 Guided Learning Hours 101 Total Qualification Time

This unit sits in both the Level 2 and Level 3 Credit & Collections pathways. Learners will study the same content; however, the unit result depends on the score attained in the summative exam.  Level 2 pass rates are 60-64% (As of 2024) with Level 3 being 65% or above. Those intending to complete a Level 2 qualification only can count a Level 3 pass in this unit towards their overall Level 2 Certificate or Diploma.

Aim

The unit 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

Assessment

One hour online examination involving 60 multiple choice questions.