Introduction

Companies recognize the usefulness and importance of credit to maintain or gain a competitive edge. Yet, at the same time, they recognize the increased risks of late and/or non-payment that this entails.

What is the “right” credit term? How much credit can/should a Company grant to its customers? What are the costs of credit? What type and what level of securities should we require of our customers? How do we detect early signs of financial distress? What do we/can we do to address signs of financial distress? Is immediate withdrawal of credit facilities always the right thing to do under such circumstances? How do we work with difficult payers?

These are questions and challenges that each Credit Professional needs to address. This one-day workshop will address these and many other questions and provide useful tools and skill sets to help the Credit Professional manage the increasingly complex credit environment.

 

(Training Venues: In view of the current COVID-19 situation, all our classes will have a maximum of up to 9 participants. Hotels has taken strict measures such as daily disinfecting of all seminar rooms, cleaning the lift buttons and door knobs, temperature taking for our participants and hand sanitizers are also available. Travel Declaration Form will be sent to all participants prior to the training sessions)

(Social Distancing: Traditional classroom setting with only ONE participant at each table, with a distance of one metre apart from another. Comfortable seating space at the lunch area. All participants have to wear a mask during the training)

Course Details:

 

Objectives

• To better appreciate the role of credit in an organization and the importance of credit as a competitive tool to enhance profitable sales

• To more adequately comprehend the benefits, risks and pitfalls of granting credit to customers

• To acquire useful tools to evaluate the credit need as well as the credit capacity of customers

• To learn and be aware of the various strategies, methods and approaches for mitigating credit risks

• To grasp the importance of monitoring credit exposure against limits set for each customer and know what performance indicators to use for an effective debt collection

• To understand what the early distress signals are and to give the company a head-start in addressing potential bankruptcy and other financial problems of customers

Outline

1. The Role of Credit in a Modern Organization

  • Relationship of Credit with Other Functions of the Organization
  • Credit Philosophy and Tolerance for Risk

 

2. Financial Effects of Customer Credit

  • Value Adding Activities of Credit
  • Costs, Risks & Pitfalls of Granting Credit

 

3. Credit Terms & Conditions of Sale

  • Use of Credit to Gain Competitive Edge
  • Dangers of Excessive Use of Credit

 

4. Assessing Credit Needs

  • Elements Influencing Credit Needs

 

5. Evaluating Credit Quality

  • Key Financial Ratios
  • Quality of Management
  • Other Qualitative Factors

6. Setting Credit Limits

  • What Credit Limit to Set
  • Secured vs Unsecured
  • Setting Limits to Credit Analysts’ Authorities

 

7. Credit Risk Mitigation

  • Types of Securities
  • Effectiveness of Various Security Instruments

Outline

8. Monitoring Credit Exposure

  • Importance of Credit Exposure Monitoring
  • Assess Need for Credit Limit Adjustments

 

9. Receivables Collections

  • Receivables Collection Discipline
  • Maintaining Strong Cash Flows through Efficient Collections
  • Collection Performance Indicators
  • Enforcing Suspension of Supplies of Goods & Services
  • Dunning Process

 

10. Understanding Early Distress Signals

  • Recognizing Early Signs of Financial Distress
  • Taking Early Actions to protect the Company

 

11. Doubtful & Bad Debt Management

  • Provisioning for Doubtful Debts
  • Call on Securities
  • Payment Restructuring
  • Pursuing Legal Remedies
  • Bad Debt Write-Offs

Who should attend

• Senior Credit Managers, Credit Executives, Credit Analysts and Credit Administrators Sales Managers & Sales Executives will also find the Workshop useful.

 

Methodology

• Self-Evaluation
• Presentation
• Illustration
• Group Discussion
• Group Practice
• Role Play

Trainer

Lee Khuay Chye has more than 20 years experience in the areas of Accounting and Finance, with several years of hands-on credit experience as a Regional Credit Manager for a multi-national company.

Besides Accounting, Treasury and Finance, he also has had good work experience in Sales & Marketing, Corporate Planning, New Business Development, Supply &Trading and Human Resource. Having undertaken many varied assignments, Khuay Chye has developed a good appreciation of the diverse and sometimes conflicting needs, challenges and operations of various functions.

Khuay Chye also has overseas experiences in Hong Kong, leading the Accounting Department of an oil major and in Thailand, where he led and managed credit for the affiliates of the oil major throughout the entire Asia-Pacific Region.

Khuay Chye holds an Honours Degree in Business Administration from the National University of Singapore.

Administrative Details:

Scheduled Date

• Date to be advised  (1st Run) 

Cost

• S$ 450 per participant

• S$ 400 per participant for 2 participants from the same organisation

• S$ 350 per participant for 3 or more participants from the same organisation

Duration

• 9 am - 5 pm

Refreshments

• Coffee & tea with snacks during the morning and afternoon breaks

• Buffet lunch with vegetarian & halal options

 

Certification

A Certificate of Attendance will be awarded at the end of the workshop.

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