Effective Credit Management & Debt Recovery

Many organisations assign credit approval and debt collection responsibilities to personnel who lack the necessary background or training in credit management. This practice significantly increases the company’s exposure to bad debts and write-offs. The risk becomes even greater when sales volumes are high but profits fail to materialise due to weak credit assessment and ineffective collection processes.

In many cases, the root cause lies in inadequate customer credit evaluation, weak credit control systems, and poor debt recovery practices. With a properly trained credit management team, however, these risks can be minimised. Effective credit control ensures healthier cash flow, stronger profitability, improved cash conversion cycles, optimal use of resources, and better returns on investment.

Learning Outcomes

By the end of this programme, participants will be able to:

• Assess potential customers using qualitative evaluation techniques and financial ratio analysis.

• Utilise credit agencies to review customer creditworthiness and identify legal or financial risks.

• Establish appropriate credit limits and credit terms.

• Understand the importance of structured credit control and commercial awareness in business operations.

• Handle payment delays and common non-payment excuses while reducing credit exposure.

• Manage collections involving financially distressed debtors.

• Develop effective telephone-based debt collection techniques.

• Implement practical and proactive credit management and recovery strategies.

• Apply various collection approaches, including debt restructuring where appropriate.

• Strengthen collection processes to improve overall recovery outcomes.

• Understand the legal framework of debt recovery and optimise collection through litigation procedures when necessary.

• Draft clear, concise, and persuasive collection letters, emails, and formal communications.

• Make informed credit decisions that enhance organisational Return on Investment (ROI).

• Apply diverse debt recovery techniques suited to different customer situations.

Target Participants

This programme is suitable for Executives, Business Development Officers, Managers, Department Heads, Finance Personnel, Business Owners, and Entrepreneurs seeking to strengthen their credit control and debt recovery capabilities.

Training Methodology

The programme is delivered using an engaging and practical approach that includes:

• Interactive and brain-friendly lectures

• Experience-sharing sessions

• Real-world case studies

• Video and audio learning materials

• Practical exercises and skill-based activities