Further Details
Is it right for me?
Suitable for credit managers, finance managers and senior credit control staff with responsibility for setting credit limits for short-term, business to business credit sales. Prior knowledge of company accounts and the balance sheet in particular would be helpful, although both will be covered on the workshop.
What will I learn?
By the end of this course you will be able to:
Understand the importance of assessing risk when setting a credit limit.
Know where to find relevant information and how to approach new customers’ credit applications.
Understand the make up of financial statements, what you can learn from them, and their limitations.
Identify the key ratios for making trade credit decisions and understand how they are calculated.
Recognise the more general signs that a customer may be unable to pay its debts.
Take short-term trade credit decisions with more confidence and competence.
What will it cover?
The Need to Carry out Risk Assessment
Why we assess risk
The principles of credit assessment
Who should carry out the risk assessment?
New Customers - Sources of Credit Information
Using commercial credit agencies
Establishing the facts about company status
Trade references
Interpreting ‘bank speak’
Gathering ‘soft’ information
Assessing Ability to Pay
The make up of a set of financial statements
Understanding what we can learn from financial statements
Recognising the limitations of financial statements
The key ratios for trade credit management
Where to find informal information and how to use it
Setting a Credit Limit
The reasons for business failure
How to calculate the credit limit
Put your learning into practice
Reducing the Risk
Examine the options open to you
Security, guarantees and insurance: where can they be of the most use to you
Spotting the Warning Signs
Analysing and interpreting trends
Using feedback from sales and accounts staff
What you can learn from the press
Learn how to spot the subtle signs about changes in a company’s health
The warning signs of immediate problems
Drastic warning signs - it may be too late!
Testimonial
Lisa Deadman, Credit Control
Easynet Ltd
The course gave a good overall view of assessing both new and existing customers. The notes were excellent.
Guide price
499 |
