Course Overview

Effective credit policy and receivables management are essential for maintaining healthy cash flow, minimising bad debts, and sustaining profitable customer relationships. Organisations require structured and deliberate approaches to managing credit limits, optimising billing efficiency, and implementing robust collection strategies.

The Accounts Receivable and Credit Policy course by Transformentors Academy equips participants with the essential skills to establish sound credit policies, evaluate customer risk accurately, manage collections effectively, set meaningful performance metrics, and forecast potential credit exposures. Participants will engage in practical, hands-on exercises designed to build AR frameworks, apply data analytics, and align credit operations seamlessly with sales objectives.

Agenda

Day — 1 Introduction to Credit and Receivables Management

• Understanding the strategic importance of accounts receivable in driving cash flow and business performance
• Definition of credit policy, exploring its role, and understanding its broader organisational impact
• Exploring the different roles and responsibilities of the credit department within the finance function
• Identifying the key drivers that shape and influence credit policies across the organisation
• Explaining the five Cs of credit evaluation used to assess customer creditworthiness:
  • Character
  • Capacity
  • Capital
  • Collateral
  • Conditions
• Exercise: Conducting a comprehensive policy gap analysis to identify areas for improvement and enhancement

Day — 2 Credit Department Operations and Customer Risk Evaluation

• Guidelines and tools for setting credit department objectives and defining meaningful KPIs that drive performance
• Exploring the procedures for reviewing both new and existing customer accounts to assess ongoing creditworthiness
• Identifying key indicators within financial statements that signal customer financial health and potential risk
• Exploring the application of financial ratios as tools for determining customer creditworthiness and credit capacity
• Discussing the growing role of technology in credit risk management and the tools available to support assessment
• Exercise: Evaluating a portfolio of customer financial statements and recommending appropriate credit terms based on analysis

Day — 3 Credit Limits and Billing Efficiency

• Techniques for assessing and adjusting credit limits dynamically, balancing risk management with growth opportunities
• Guidelines for establishing and nurturing profitable, sustainable relationships with customers
• Understanding the critical role of upfront operations in streamlining the billing process and reducing errors
• Explaining the direct link between billing accuracy and cash acceleration, and its impact on working capital
• Methods for identifying and preventing common invoicing mistakes that delay payments and damage customer relationships
• Case Study: Examining real-world cases of billing process failures and the lessons they offer for improvement

Day — 4 Collection Strategy and Credit-Sales Collaboration

• Guidelines and techniques for creating a clear, comprehensive collection policy that sets expectations and defines procedures
• Exploring effective communication, reminder, and escalation techniques that accelerate collections and encourage payment
• Examining various collection approaches and identifying best practices that balance firmness with customer sensitivity
• Strategies for managing and resolving customer disputes professionally and working toward satisfactory outcomes
• Explaining the critical link between credit, sales, and collections functions and how they must work together
• Best practices for maintaining a healthy and productive credit-sales partnership that supports business growth
• Exercise: Engaging in realistic simulations of difficult collection conversations to build confidence and develop practical negotiation skills

Day — 5 Advanced Performance Management and Risk Control

• Methods and tools for evaluating critical AR metrics, including:
  • Aging of Accounts Receivable
  • Turnover Metrics
• Understanding the calculations of the Collection Effectiveness Index (CEI) and Accounts Receivable Turnover ratios
• Explaining the role of portfolio strategy in managing AR and optimising the mix of customer accounts
• Methods for forecasting and proactively managing bad debts to minimise financial impact
• Strategies for improving the overall quality and efficiency of the AR process and reducing cycle time
• Discussing the advantages and disadvantages of outsourcing AR activities and when it may be appropriate
• Exercise: Designing a comprehensive credit and collection framework incorporating best practices and course concepts
• Course Evaluation & Recap: Consolidating key learning outcomes, reflecting on practical applications, and gathering structured feedback on the overall course experience

Post-Course

• Three (3) x hour-long Executive Coaching sessions at monthly intervals following Course Completion

Target Audience

• Senior Executives and C-level Leaders
• HR Directors and Organisational Development Managers
• Leadership Coaches and Mentors
• Change Management Specialists
• Managers and Department Heads
• Business Unit Leaders
• Talent Development and Leadership Development Professionals
• Employee Engagement and Culture Managers
• Strategic Planners and Decision Makers
• HR Business Partners
• Team Leaders and Supervisors involved in change initiatives
• Organisational Psychologists and Behavioural Experts
• Business Advisors

Learning Outcomes

By the end of this course, you will be able to implement a successful strategy that enables you to:

• Identify and understand key characteristics of great leadership.
• Develop behaviours and habits that build credibility and influence.
• Analyse and evaluate leadership styles using real-world benchmarks.
• Recognise core traits that enable effective leadership in complex environments.
• Cultivate and apply growth-oriented mindsets.
• Adapt leadership behaviours through cognitive flexibility.
• Implement strategies to maintain leadership stability.
• Recognise and manage personal leadership triggers.
• Use techniques to sustain focus and clarity under pressure.
• Strengthen key dimensions of executive presence: credibility, clarity, and composure.
• Ensure alignment between self-perception and external signals of leadership.
• Utilise verbal and non-verbal techniques to enhance leadership impact.