Course Overview

Effective credit control is vital for maintaining strong cash flow, minimising financial risk, and sustaining long-term customer relationships. Without structured credit management practices, organisations can face rising bad debts, liquidity challenges, and operational disruptions.

The Effective Credit Control Training programme by Transformentors Academy offers a comprehensive and practical framework for managing credit risk throughout the customer lifecycle. Over five structured days, participants will explore key areas such as credit policy design, customer credit assessment, collection strategies, legal considerations, and third-party recovery processes.

The programme emphasises real-world application, equipping participants with the skills to manage overdue accounts professionally, implement robust credit control systems, and apply financial and legal tools effectively.

By the end of the programme, participants will be able to protect organisational cash flow while maintaining positive and sustainable customer relationships.

Agenda

Day — 1 Introduction to Credit Control

• Defining credit and credit control and their importance in business operations
• Understanding the objectives and principles of effective credit management
• Identifying the roles and responsibilities of a credit controller
• Exploring the credit control process within the business cycle
• Case study: Analysing the impact of poor credit control practices

Day — 2 Credit Policy & Customer Creditworthiness

• Understanding the purpose, structure, and components of an effective credit policy
• Establishing credit terms, limits, conditions, and approval workflows
• Evaluating customer creditworthiness using:
  • Financial Statements
  • Trade and Bank References
  • Credit Reports
• Applying credit insurance and other risk mitigation strategies
• Drafting contracts and invoices aligned with payment terms and legal requirements
• Understanding late payment legislation and its implications
• Case study: Assessing a new customer’s creditworthiness and setting appropriate credit limits

Day — 3 Collection Strategies & Communications

• Understanding collection procedures and the full chase cycle
• Using different communication channels effectively:
  • Letters
  • Emails
  • Phone Calls
  • In-person Meetings
• Conducting effective collection calls to secure timely payments
• Drafting professional collection letters and reminder templates
• Managing non-payment situations, excuses, delays, and disputes
• Role play: Practising telephone collection techniques using real-life scenarios

Day — 4 Third-Party Collectors & Legal Action

• Identifying when to engage external debt collection agencies
• Preparing and issuing a Letter Before Action (LBA) effectively
• Understanding court claim procedures and response processes
• Preparing for and attending court hearings
• Exploring enforcement options:
  • County Court Judgments (CCJ)
  • Enforcement Orders
  • Asset Recovery
• Case study: Evaluating whether to escalate an overdue account to third-party collection or legal action

Day — 5 Bad Debt Management & Legal Remedies

• Understanding statutory demand procedures for effective debt recovery
• Evaluating options for dealing with insolvent debtors:
  • Bankruptcy
  • Winding-up Petitions
  • Voluntary Arrangements
• Understanding administration orders and their impact on creditors
• Applying VAT and tax relief rules for bad debts
• Using financial risk protection tools:
  • Credit Insurance
  • Guarantees
  • Factoring
• Workshop: Designing a credit control improvement plan for organisations with high overdue accounts

Learning Outcomes

After completing the Effective Credit Control Training programme, you will be able to:

• Understand the fundamentals of credit control and its role in maintaining cash flow and liquidity
• Design and implement effective credit policies aligned with organisational strategy and risk appetite
• Conduct credit assessments to evaluate customer creditworthiness and reduce bad debt risk
• Apply professional communication and negotiation techniques to manage overdue accounts
• Develop structured collection procedures and escalation strategies for efficient debt recovery
• Understand legal frameworks related to credit control, including payment regulations and recovery processes
• Collaborate with external agencies, insurers, and legal professionals for complex debt cases

Who Should Attend

This Effective Credit Control Training programme is ideal for professionals involved in credit management and receivables, including:

• Credit Controllers and Credit Managers
• Finance and Accounts Receivable Officers
• Collections and Debt Recovery Professionals
• Finance Managers and Controllers
• Sales and Commercial Managers involved in credit decisions
• Professionals responsible for cash flow management