This subject is about understanding and applying the principles of effective credit control in an organisation. You will require an understanding of the principles of credit control in the context of relevant legislation, contract law, best practice, professional ethics and organisational policies.
You will also be able to describe remedies for breach of contract, as well as the terms and conditions of contracts with customers. Additionally, you will gain knowledge of sources of information and techniques used to assess credit risks in compliance with organisational policies, data protection legislation and professional ethics. Knowledge and application of performance measures relating to liquidity, profitability and gearing will be fundamental to this subject.
You will apply your skills to monitoring and evaluating credit control in compliance with organisational policies and, in particular, will learn the importance of liquidity management. You will be expected to demonstrate your ability to present advice and recommendations in line with organisational policies in a professional manner, including for write-offs and provisions.
• Examine how the main features of statute and contract law apply to credit control
• Explain the terms and conditions associated with customer contracts
• Explain sources of credit status and assessment methods used in granting credit
• Analyse the credit status of existing and potential customers
• Present and justify reasons for granting, refusing, amending or extending credit
• Discuss legal and administrative procedures for debt collection
• Evaluate the effectiveness of methods for collection and management of debts
• Justify appropriate debt recovery methods
• Calculate the effect of early settlement discounts
• Explain the importance of liquidity management
• Discuss the effects of bankruptcy and insolvency
• Analyse receivables
• Select relevant, accurate and timely information and present it effectively
• Evaluate recommendations for write-offs and provisions
On successful completion of this subject, you will:
1. Analyse relevant legislation and contract law that has an impact on the credit control environment
2. Critically analyse information from a variety of sources to assess credit risk and grant credit in compliance with organisational policies and procedures
3. Evaluate a range of techniques to collect debts
4. Critically evaluate credit control in line with organisational policies and procedures
5. Present advice and recommendations to management on the credit control system
Format: Computer based
Availability: On demand at EIMF Examination Center
Pass: A score of 100 out of 150 will represent a Pass
Length: 150 minutes
Questions: Contains 7 tasks.
Marking: Partially computer / partially human marked
Results: Results will be available in six weeks
Please Note: Official Exam is not provided, It should be purchased separately
Registration and Access
Once you complete an online purchase you will receive confirmation of account activation. Please allow 48 hours to get access to all the modules and for your eLearning account to be set up.
If you wish to receive an invoice instead of paying online, please contact us at firstname.lastname@example.org. Access to the subject is valid for 365 days.
Who is this subject for?
• Small business owners
• Undergraduates and graduates
• Experienced accountants
• Anyone with an interest in pursuing a career in accountancy
• Completion of Foundation Certificate in Accounting and Advanced Diploma in Accounting
• Bachelor’s Degree in accounting and finance or other related studies
• Work experience
Upon the successful completion of the subject of Credit Management, you can advance to the next subject of the Professional Diploma in Accounting or if you have already completed other subjects, can apply to the synoptic exam of Professional Diploma in Accounting.