Course Overview

Strong credit control and effective debt management are critical for maintaining healthy cash flow, liquidity, and overall financial stability. Poor credit practices can result in increased bad debts, weakened customer relationships, and higher financial risk—especially in today’s uncertain economic environment.

The Credit Control and Debt Management programme by Transformentors Academy provides a comprehensive and practical approach to managing credit risk and receivables. Participants will gain insights into credit risk assessment, credit policy development, receivables management, and ethical debt recovery practices.

The programme integrates financial analysis, legal considerations, communication skills, and modern technology tools to strengthen credit control processes across organisations. Through case studies, workshops, and hands-on exercises, participants will develop the ability to improve collections, manage overdue accounts, and negotiate payment arrangements effectively.

By the end of the programme, participants will be equipped to integrate credit control into broader financial strategy, protect working capital, and support sustainable business performance.

Agenda

Day — 1 Introduction to Credit Control for Business Sustainability

• Defining key concepts:
  • Credit
  • Debt
  • Credit Control
  • Debt Management
• Understanding the importance of credit control in maintaining cash flow and profitability
• Exploring the link between sales, credit policies, and the cash conversion cycle
• Identifying the objectives and functions of a credit control department
• Recognising common credit management challenges and their business impact
• Applying key principles of effective credit management
• Case study: Analysing the consequences of poor credit control practices

Day — 2 Credit Risk & Creditworthiness Assessment

• Defining credit risk and understanding its importance in business operations
• Analysing internal and external factors affecting customer creditworthiness
• Applying the 5Cs of Credit for evaluation:
  • Character
  • Capacity
  • Capital
  • Collateral
  • Conditions
• Using financial statements and ratio analysis for credit risk assessment
• Leveraging third-party credit information sources:
  • Credit Reporting Agencies
  • Trade References
  • Bank References
• Understanding credit scoring systems and their role in decision-making
• Identifying behavioural and market indicators of high-risk customers
• Case study: Assessing creditworthiness using a sample financial profile

Day — 3 Credit Policy & Control Framework Development

• Understanding the purpose, structure, and key components of an effective credit policy
• Setting appropriate credit terms, limits, and conditions
• Linking credit policy with corporate strategy and risk appetite
• Balancing sales growth with effective credit risk management
• Designing credit approval workflows and exception-handling procedures
• Ensuring regular policy reviews and compliance monitoring
• Workshop: Drafting a credit policy framework for a medium-sized enterprise

Day — 4 Credit Documentation & Contracts

• Identifying essential documents used in credit transactions:
  • Invoices
  • Statements
  • Agreements
• Understanding the role of contracts and service agreements in enforcing payment obligations
• Explaining the legal rights and responsibilities of creditors and debtors
• Reviewing key legislation and frameworks governing credit and debt collection
• Identifying common contractual pitfalls and sources of disputes
• Exploring methods to secure credit:
  • Guarantees
  • Collateral
  • Credit Insurance
• Practical exercise: Reviewing and evaluating a sample credit contract for completeness

Day — 5 Managing Accounts Receivable & Collections

• Understanding the structure and purpose of accounts receivable systems
• Using ageing reports to categorise and monitor overdue accounts
• Applying key credit performance indicators:
  • Days Sales Outstanding (DSO)
  • Collection Effectiveness Index (CEI)
  • Bad Debt Ratio
  • Average Collection Period
• Analysing collection trends and their impact on working capital
• Implementing escalation processes and prioritisation strategies for overdue debts
• Leveraging technology tools for automated receivables tracking and reporting
• Workshop: Preparing and analysing an aged receivables report and calculating key metrics

Day — 6 Communication & Negotiation in Debt Collection

• Exploring different approaches to recovering outstanding debts
• Understanding the importance of professional and ethical communication
• Applying effective debtor contact methods:
  • Letters
  • Emails
  • Phone Calls
  • In-person Meetings
• Developing persuasive and respectful collection letters and scripts
• Managing debtor resistance, objections, and emotional responses
• Applying win-win negotiation techniques for repayment agreements
• Understanding cross-cultural and ethical considerations in collections
• Role play: Conducting a mock negotiation to agree on a repayment plan

Day — 7 Structuring & Managing Payment Plans and Disputes

• Assessing a debtor’s capacity and willingness to pay
• Designing repayment schedules and modified payment agreements
• Monitoring and following up to ensure compliance with payment plans
• Resolving disputed debts quickly and fairly
• Understanding accounting treatment for:
  • Settlements
  • Partial Payments
  • Write-offs
• Considering legal aspects in payment restructuring and documentation
• Practical exercise: Designing a repayment plan for a financially distressed customer

Day — 8 Bad Debt Prevention & Best Credit Control Practices

• Identifying early warning signs of potential defaults and taking pre-emptive action
• Applying effective credit control strategies and tools:
  • Stop-supply policies
  • Credit holds
  • Deposits
  • Staged billing
• Promoting cross-departmental collaboration in credit decision-making
• Using financial risk protection tools:
  • Credit insurance
  • Guarantees
  • Factoring
• Reviewing and adjusting customer credit limits regularly
• Leveraging automation and data analytics for proactive risk prevention
• Case study: Evaluating and improving a company’s credit control strategy

Day — 9 Legal Recovery Processes & External Debt Management Agencies

• Understanding the escalation path from internal collections to external recovery
• Comparing legal enforcement options:
  • Demand Letters
  • Statutory Demands
  • Insolvency Proceedings
  • Court Actions
• Conducting cost-benefit analysis of litigation vs. settlement or write-off
• Understanding the role of external agencies and debt management firms
• Exploring enforcement mechanisms involving:
  • Bailiffs
  • Sheriffs
  • Administrators
• Applying ethical standards and fair debt collection practices
• Simulation: Evaluating recovery strategies for high-risk overdue accounts

Day — 10 Strategic Credit Management & Future Trends

• Understanding how strategic credit management supports long-term business growth
• Integrating credit control with financial planning, forecasting, and risk management
• Exploring the use of AI and digital tools for predictive credit analytics
• Designing credit performance dashboards and continuous improvement systems
• Analysing the impact of economic trends on credit and debt management strategies
• Course recap and key lessons learned

Learning Outcomes

By attending the Credit Control and Debt Management programme, you will be able to:

• Understand the fundamentals of credit control and debt management and their impact on cash flow and liquidity
• Evaluate customer creditworthiness using financial analysis, credit scoring, and external data sources
• Design and implement effective credit policies aligned with organisational strategy
• Apply proper documentation and contractual procedures to ensure legal and ethical compliance
• Monitor accounts receivable using KPIs and ageing analysis to improve collections
• Communicate and negotiate effectively with debtors while maintaining strong relationships
• Develop structured payment plans and manage dispute resolution processes
• Prevent bad debts through proactive risk management and internal controls
• Navigate legal recovery processes and work with external agencies when required
• Integrate credit control into financial strategy using data analytics, automation, and predictive tools

Who Should Attend

This Credit Control and Debt Management programme is ideal for professionals responsible for managing credit risk, receivables, and debt recovery, including:

• Credit Control and Accounts Receivable Professionals
• Finance and Accounting Managers
• Risk Management and Compliance Officers
• Sales Managers involved in credit-based transactions
• Customer Finance and Billing Professionals
• Business Owners and Senior Managers overseeing cash flow
• Professionals responsible for credit policy and collections