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Managing Commercial Credit Risk

Business failures are at an all time high and increasing. This puts more pressure on companies providing goods or services on credit to increase sales and have more control over the granting of credit and credit limits. This highly interactive course will enable you to maximise credit and control risk whilst being commercially minded.

Course Objectives

To make informed, effective credit decisions on companies you are already dealing with or looking to supply on credit in the future, whether they are new businesses, have been trading for a few years or are well established.

Course Designed For

Anyone involved or looking to get involved in making credit decisions for granting commercial credit and managing credit exposure and risk

Gathering and Understanding Information

  • Identifying your customer
  • The different types of businesses
  • Credit application forms
  • Credit reports
  • On-line information
  • Financial information
  • Information from sales people
  • Visiting customers

Working with Financial Information

  • Being a credit professional not an accountant
  • Understanding the balance sheet and profit and loss account
  • Looking at key ratios
  • Applying a score to ratios
  • Assessing different trends in different industries

Making Credit Decisions

  • Releasing an order received today
  • Reaching a credit decision on a new or well established business
  • Setting credit lines
  • Determining low, medium and high risk
  • Being commercially minded
  • Taking a higher commercial risk
  • Grading customers
  • On-going risk assessment

Managing the Risk

  • Guarantees
  • Retention of title
  • Credit insurance
  • Credit policy, terms and procedures
  • Bad debt provision
  • Spotting warning signs

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