Trade Credit Management
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