Shananda Miller-Hinsey



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Course Duration: 10 weeks


This course is an introduction to credit and collection procedures and management. The topics to be covered will include credit and credit management, financial effects of credit, credit policy, credit risk assessment, management and analysis of consumer credit, and collection management. Emphasis will be placed on credit and collection policies and procedures, decision making regarding credit distribution, and collection methods.


Upon successful completion, students will be able to:

  • Define credit and reasons for credit management
  • Outline credit terms and conditions of sale
  • Examine financial effects of credit on profits and liquidity
  • Discuss and contribute to a collections policy
  • Discuss credit risk assessments
  • Execute effective collection strategies


The History and Future of Credit

The origin of credit

Consumer credit

Future for credit management


Credit Terms and Conditions of Sale

Credit terms

Conditions of sale

Types of credit terms

Cash discount for early settlement

Charges for late payment

Consignment Accounts

Methods of Payment


Credit Management

What is credit management?

Its objectives

Its relationship with Sales


Financial effects of Credit Management

Background to cash flow and net profits

Cost of Credit

Effects of credit on profits and liquidity

Effects of bad debt on profits


Credit Policy and Organization

Credit policy structure

Criteria for a credit policy

Guidelines governing a credit department


Credit Assessment

Evaluation of credit risk of customers

Sequence of actions in risk assessment

Marketing and Risk Assessment

New Accounts and Information on Customers

Key Documents for Assessment and Interpretation of Accounts

Recommended Ratios for Risk Assessment


Cash Collection

Effective collection methods

Debt Collection Agencies

Planning stage, Process & remedies



Participation in Discussions                 10%

Homework Assignments                      20%

Class Assignments                              20%

Quizzes                                               20%

Project                                                 30%

TOTAL                                                100%



Hand-outs will be supplied by the Course Instructor


Course content

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Content of this course is available by invitation only. You can not access this course if you don't have an invitation from the course instructor.

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