Debt Collection & Credit Control

Introduction

The current global economic environment is turbulent with the lingering effects of the pandemic and the ongoing Russia- Ukraine war. The rising cost of food and fuel prices worldwide are impacting consumer demand and industrial production. The currency crisis and uncertainties of trade sanctions are adding more anxiety to business executives in many places. Top priority concerns for the coming year 2023 are surviving in a cash flow crisis arising from falling sales, delayed customer payments, bad debts, and the rising cost of operations wiping out any already thinning profit margins.

Cash flow is even more crucial for healthy business operations and avoiding financial stress. Managing the cash flow is the primary responsibility of the CFO — Chief Financial Officer. However, business decisions are taken and executed by all managers and the CEO. The CFO does not run the sales team, and manage the factory operations nor their costs. Managing the cash flow is a companywide issue involving the understanding and support of the managers and the management team.

Poor understanding and bad business decisions cannot be cured by the CFO. Therefore members of the management team, need to be clear on what drives the cash flow condition and work in cooperation with the CFO and the CFO team, not independent of them.

This program is a one-day event, to help these managers and their teams, understand the cash flow and credit control situation of the business. This is a part of the series on FINANCIAL INTELLIGENCE, by Finet Associates, to empower managers and their staff, with the capacity to understand cash flow, with essential skills to undertake actions for better quality business, lower credit risk, and secure healthy cash flow for uncertain times ahead

Outcome

At the end of this program, participants will be able to:

- Apply the understanding of cash flow drivers of a business, review and improve the company's collection and credit control process, for achieving cash flow and minimize bad debts
- Review and revise collection practices & policies, handle bad customer accounts
- Working capital needs and credit management, and funding plans
- Evaluate ideas and suggestions on credit risk management for cash flow improvement
- Demonstrate the validiaty of credit and collection policies, practices, new approaches to collection

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No Topic Topic Description
1 Cash Flow & Working Capital
  • The funding structure of a business
  • Working capital of the business
  • Cash flow planning and control
2 Managing Cash Flow Risk
  • Operational cash flow sources
  • Working capital funding
  • Non-working capital funding
3 Credit Policies & Practices
  • Business strategy and policies
  • Credit risk management
  • Credit scoring and decisions
4 Collection Policies & Practices
  • Credit collection effectiveness
  • Collection tools
  • Collection skills and practices
5 Corporate Governance & Cash Flow Risk
  • Management & Transparency
  • Preventing conflict of interest

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