View Unit : Trade Credit Management

Unit

Unit Reference Number

M/502/0215

Qualification Framework

QCF

Title

Trade Credit Management

Unit Level

Level 2

Unit Sub Level

None

Guided Learning Hours

Unit Credit Value

Date of Withdrawal

SSAs

15.1 Accounting and Finance, 15.2 Administration, 15.3 Business Management, 15.4 Marketing and Sales, 15.5 Law and Legal Services

Unit Grading Structure

Pass

Assessment Guidance

None

View Unit's Qualifications

Learning Outcomes and Assessment Criteria

Learning Outcome - The learner will:		Assessment Criterion - The learner can:
1	Understand the role of credit management within the business environment.	1.1	Identify the purpose of controlling credit within the business environment.
		1.2	Describe how the provision of credit to trade, differs from export and consumer markets.
		1.3	Recognise the impact of credit on costs, profits and liquidity.
2	Understand the organisational requirements of credit management functions.	2.1	Describe the credit management function and its personnel.
		2.2	Identify potential areas of conflict between the credit function and other areas of business.
		2.3	Identify the characteristics of customer service within the credit function.
		2.4	Describe the main features of a credit policy and procedural manual.
		2.5	Describe how an organisation measures credit management performance and sets of targets.
3	Understand the impact of legislation on the credit function.	3.1	Identify the liability of the following types of customer.
3		3.2	Identify the current legislation that affects the decision making process when dealing with credit applications.
4	Understand how to assess and control risk.	4.1	Identify the risks associated with the provision of trade credit.
		4.2	Describe different sources of information used in credit assessment.
		4.3	Identify methods of risk assessment control.
		4.4	Understand how to control risk by selecting appropriate payment terms and methods of payment.
		4.5	Identify different methods of financing credit.
5	Understand the different documents and systems used for trade credit.	5.1	Explain the purpose and features of documents used in trade credit.
		5.2	Describe the content and purpose of a customer master file.
		5.3	Describe the principal features of a sales ledger/accounts receivable system.
6	Understand collection and recovery methods.	6.1	Identify various collection methods.
		6.2	Identify techniques necessary for collections letters and telephone collections work.
		6.3	Describe how to deal with non-payment and disputes.
		6.4	Describe the steps for debt recovery through the County Court and High Court.

Equivalent Units

There are no equivalences to display.