This course is available in Online or Paper format.
This Credit Control and Risk Management course is designed for people who wish to gain an understanding of principles and practice of controlling credit and managing risk in commercial organisations. This course is a must for any small business, especially in the current economic climate.
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If you have questions about this course please get in touch by
Email: firstname.lastname@example.org, or
Phone: 01539 724622
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Credit Control & Risk Management at QLS Level 4
Delivery method: Paper Based
Course duration: 12 Months
Entry requirements: No prior qualification needed
Award achieved: ABC Awards and Certa Award Certificate of achievement at QLS Level 4
Unfortunately, debt is an issue that faces many people nowadays. The current increase in personal debt in the UK has partially been blamed on the “buy now, pay later” philosophy that exists in our society, an attitude that encourages many individuals to maintain their lifestyle with the use of credit.
The related problems brought on by being in debt can affect almost every area of a person’s life, for example; their health, relationships, job, lifestyle and future prospects. The extent to which the debt impacts on people will depend on how serious each person perceives their debt problem to be.
No course pre-requisites
The course has six units:
Unit One – Introduction to debt
- When is debt a problem?
- Causes of personal and business debts
- Individual personal circumstances that can lead to debt
- Economic factors that can lead to debt
- Circumstances that can lead to business debt
- Other factors that can lead to debt
- Types of borrowing
- Creditor’s rights
- Non-court actions available to creditors
- Collecting debt through the court
- Enforcing the Judgement
- How long can a creditor pursue a debt for?
Unit Two – Consumer credit
- What is customer credit?
- Benefits of offering customer credit
- Risks of offering customer credit
- Common regulated consumer credit activities
- Acquiring consumer credit authorisation from the Financial Conduct Authority (FCA)
- Preparing an application for FCA authorisation
- FCA rules that must be followed
- Business to Business Lending Regulation UK
- The business’s credit policy
- Customer credit agreement
- Implementing good credit control procedures
Unit Three – Credit risk analysis
What is credit risk?
Types of credit risk
What is credit risk analysis?
- Types of information used when analysing credit risk
Methods used to analyse credit risk
Checking an individual customer’s likely ability to pay back debt
- Credit reference agencies
- Credit reports
- Credit check results
- How credit scores are used
- FICO Scores
Checking a business customer’s likely ability to pay back debt
- Doing more research
- Obtaining bank references
- Contacting other suppliers
- Asking for supplier references
- Adopting the pro-forma approach
- Checking published accounts
- Obtaining a credit report from a credit bureau
- The “5 cs of credit.
- What to look out for when credit checking business customers
Credit risk modelling
- Types of credit risk models
Mitigating credit risk
- Applying restrictions to the credit agreement
- Credit insurance and derivatives
- Knowing when to end a business relationship
Unit Four – Factoring and Invoice Discounting
- What is factoring?
- The key parties involved in factoring
- The factoring process
- Characteristics of factoring
- What is invoice discounting?
- The differences between factoring and invoice discounting
- Different types of factoring and invoice discounting
- Using factoring as a means to reduce risk
- Using invoice discounting as a means to reduce risk
- Disadvantages of factoring
- Charges and payments associated with factoring
Unit Five – Negotiating with creditors
- Determining the debtor’s position
- Using a flexible, fair and realistic approach to collection
- Options available to a customer who has debts
- Tackling secondary debts
- Loan consolidation
- Debt Management Company
- An Administration Order
- Individual Voluntary Arrangement (IVA)
- Tackling secondary debts
- Starting the collection process
- Negotiating a payment plan
- Recording details of the payment agreement
- Further debt recovery actions
- Skills required when negotiating and collecting debts
Unit Six – Business management
The manager’s role- Personal skills
- Setting objectives
- Decision making
- Time management
- Reviewing progress
- Team working
- Building an effective credit control team
- Collecting information
- Organising information
- Communicating information
- Cost analysis and control
- Financial information
- The balance sheet
- The profit and loss account
- The cash flow statement
At the end of this course successful learners will be given the option to receive a Certificate of Achievement from the Quality Licence Scheme and a Learner Unit Summary (which lists the components the learner has completed as part of the course).
The course has been endorsed under the Quality Licence Scheme. This means that Kendal Publishing Ltd has undergone an external quality check to ensure that the organisation and the courses it offers, meet defined quality criteria. The completion of this course alone does not lead to a regulated qualification* but may be used as evidence of knowledge and skills gained. The Learner Unit Summary may be used as evidence towards Recognition of Prior Learning if you wish to progress your studies in this subject. To this end the learning outcomes of the course have been benchmarked at Level 4 against level descriptors published by Ofqual, to indicate the depth of study and level of demand/complexity involved in successful completion by the learner.
The course itself has been designed by Kendal Publishing Ltd to meet specific learners’ and/or employers’ requirements which cannot be satisfied through current regulated qualifications. The Quality Licence Scheme endorsement involves robust and rigorous quality audits by external auditors to ensure quality is continually met. A review of courses is carried out as part of the endorsement process.
The Quality Licence Scheme is part of the Skills and Education Group, a charitable organisation that unites education and skills-orientated organisations that share similar values and objectives. With more than 100 years of collective experience, the Skills and Education Group’s strategic partnerships create opportunities to inform, influence and represent the wider education and skills sector.
The Skills and Education Group also includes two nationally recognised awarding organisations; Skills and Education Group Awards and Skills and Education Group Access. Through our awarding organisations we have developed a reputation for providing high-quality qualifications and assessments for the education and skills sector. We are committed to helping employers, organisations and learners cultivate the relevant skills for learning, skills for employment, and skills for life.
Our knowledge and experience of working within the awarding sector enables us to work with training providers, through the Quality Licence Scheme, to help them develop high-quality courses and/or training programmes for the non-regulated market.
*Regulated qualification refers to those qualifications that are regulated by Ofqual / CCEA / Qualification Wales
Paper Based Version
The course comes to you as an online or paper-based pack delivered by courier.
You will be given guidance through the Study Guide on the nuts and bolts of studying and submitting assignments.
Postal assignments cannot be accepted without prior permission from the tutor.
The course contains a number of assignments which your tutor will mark and give you valuable feedback on. We call these Tutor Marked Assignments (TMAs). You need only send the TMAs to your tutor for comment, not the self-assessment exercises which are also part of the course to help you gauge your progress.
This course can be taken over a 12 month period but you can complete it as fast or as slowly as you wish.
The course will take around 120 hours of study to complete.
You will have access to a tutor via email who will mark your work and guide you through the course and will assist you with any problems you may have. In addition you will be supplied with a comprehensive Study Guide which will help you through the study and assessment process.