Debt Collection, Recovery, Negotiation, and Credit Control Management

The programme

Programme overview

Debt collection involves pursuing overdue payments from businesses or individuals. Organisations that specialise in this process are known as collection agencies or debt collectors, and they work on behalf of creditors, often for a fee or commission. Effective debt collection and recovery are crucial, as cash flow issues can lead to significant organisational challenges. Although the terms debt collection and debt recovery are often used interchangeably, they have distinct differences.

Ratomac Debt Collection, Recovery, Negotiation, and Credit Control Management course is designed to provide comprehensive knowledge and skills in debt collection, recovery, negotiation, and credit control management. It aims to equip participants with the necessary expertise to take on higher responsibilities within their organisations, fostering growth and stability.

Who should attend

Who is this programme for?

• Strategic Leadership Responsible for High-Level Decisions
• Finance and Loan Managers Responsible for Financial Transactions and Loan Issuance
• Accountants and Other Executives Needing to Understand Credit Control Management
• Collection Agency Members Wanting to Enhance Their Knowledge
• Legal and Financial Advisors Involved in Legal or Financial Leakage Issues
• Anyone Interested in Debt Collection and Recovery

Learning outcomes

What you will learn

• Clearly understand debt collection, recovery, negotiation, and credit control management
• Define and establish strong credit control systems and processes to reduce the risks of defaulters impacting the organisation's financial status
• Draft simple, clear credit policies and guidelines for organisation-wide adoption
• Establish stringent guidelines for onboarding customers to prevent issues in loan issuance and other support
• Train other professionals on best practices in debt collection, recovery, negotiation, and credit control
• Negotiate on behalf of your organisation to recover the maximum amount possible
• Work with advanced tools and technology to enhance screening, monitoring, tracking, and follow-up processes
• Audit existing documentation and loan agreements to identify early risks
• Apply credit risk modelling concepts (PD, LGD, EAD) relevant to lending organisations

Explore the programme

Detailed programme outline

2-Day Essentials — Training Outline

• Types of debt collectors: first-party, third-party, sale of debts
• The debt recovery process: due diligence, letter of demand, negotiation, enforcement
• Measures for reducing bad debt: customer background checks, safe credit limits, clear payment terms
• Effective strategies: flexible payment terms, applied analytics, centralised systems
• Preparing with accurate information and research
• Professional, equal-footing negotiation approach
• Confirming deals in writing, and follow-up
• Effective credit policy components: terms of sale, credit extension, collection policy
• Credit control system set-up: clear terms/limits, credit scores, early payment discounts
• Core credit risk modelling concepts: financial statement analysis, default probability
• Deciding whether the 5-Day Comprehensive programme is the right next step

5-Day Comprehensive — Training Outline

• First-party agencies
• Third-party agencies
• Sale of debts
• Initial consultation
• Due diligence
• Issue of letter of demand
• Awaiting response and negotiation
• Filing of court papers
• Enforcement of court decision
• Thorough customer background check
• Safe customer credit limits
• Release of goods after payment clearance
• Shipping of goods after direct deposit payment
• Regular invoicing
• Clear payment instructions and terms on invoices
• Regular contact with customers
• Alternate but flexible payment terms
• Customer-oriented operations
• Up-to-date communications
• Applied analytics
• Centralised debt collection systems
• Increased focus of regulators
• Ineffective debt collection systems
• Inefficient customer segmentation
• Lack of proper tools
• Lack of a consolidated borrower-centric approach
• Multi-product, multi-channel, multi-debt obligations
• Tracing creditors
• Negotiating
• Systematic follow-up
• Maintaining records
• Freezing accounts
• Property as security
• Wage garnishment
• Terms of sale
• Credit extension
• Collection policy
• Start with reminders
• Have accurate information
• Do your research
• Stay professional
• Approach negotiations as equals
• Have a concrete minimum
• Require a counter-offer
• Confirm deal in writing
• Clearly explain ramifications
• Remember follow-up letters
• Cash flow cycle
• Accelerating cash inflows
• Cash flow forecast
• Cash flow surpluses and shortages
• Clear credit terms and limits
• Checking new customer credit scores
• Terms and conditions in writing
• Offering different payment options
• Considering discounts for early payments
• Sending regular reminders
• Employing debt collection agencies
• Commencing legal proceedings in time
• Trade credit insurance
• Financial statement analysis models
• Default probability models
• Machine learning models
• Probability of Default (PD)
• Loss Given Default (LGD)
• Exposure at Default (EAD)

Learning approach

How you will learn

Our diverse instructional approaches ensure effective learning:

– Lectures & Presentations: Engage with expert-driven, stimulating content.– Course Material: Access well-crafted supporting resources.– Group Work: Collaborate on discussions and case studies for practical insights.– Workshops & Role-Play: Participate in immersive, scenario-based activities.– Practical Application: Focus on applying theoretical knowledge in real situations.– Post-Training Support: Receive extensive support after training for skill implementation.

Discuss your requirements

Dates, duration & arrangements

Contact Ratomac to confirm dates, duration, delivery format, entry requirements and any applicable assessment or certification before booking.