Description
This unit delves into comprehending and applying effective credit control principles, encompassing suitable debt management frameworks. Businesses commonly extend credit terms to customers, which can pose financial challenges if payments are delayed or not made. So, it’s crucial to ascertain the ability of potential credit customers to fulfil agreed-upon terms.
The module explores techniques for assessing credit risks by policies, relevant laws, and ethical standards. Moreover, once credit decisions are approved, it becomes imperative to ensure timely payment of debts by customers. Students will also explore strategies for collecting overdue debts, aligning with organisational policies, legal protocols, and debt collection methods.
Understanding and employing performance metrics related to liquidity, profitability, and gearing are core components of this module. Additionally, students will enhance their comprehension of liquidity management, bankruptcies, and insolvencies, alongside exploring mechanisms such as invoice discounting, factoring, and credit insurance.
Learning outcomes
- Understand relevant legislation and contract law that impacts the credit control environment
- Understand how information is used to assess credit risk and grant credit in compliance with organisational policies and procedures
- Understand the organisation’s credit control processes for managing and collecting debts
- Understand different techniques available to collect debts
Details
Publisher - BookVAULT Publishing
Language - English
Paperback
Author(s) - Accountext Publishing Ltd
Published Date - January 17 2025
ISBN - 9781836903123
Dimensions - 29.7 x 21 x 1.1 cm
Page Count - 198
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