Credit Management Training-Lending Sector

1. COURSE OUTLINE: (Credit/Recovery Officers)

      DURATION: 3 DAYS

Holistic officer in modern lending business         

• The current challenges in the credit environment.
• Understanding today’s customers in the business of credit.
• The six cardinal laws governing Credit Management.
• Increasing your business through credit.
• The pillars of credit and how to use them to improve your cash flow.
• Parameters to facilitate quality assessment.
• Qualities of collection staff.
• The six cardinal laws governing Credit Management.
• Golden approach to collections.
• Psychological preparation of customers to pay you.
• The ten golden steps in debt collection.
• Effective collection methods. (Case studies)
• Conflict Resolution/Negotiation and effects on collections.
• Public Relations & Image management as tools of collections.
• Personal branding as tools of collections

 Concept of Credit Creation

• Introduction to modern lending business.
• Acquiring Credit Customers
• Repackaging the today lender to fit in the business environment.
• Challenges of lending business in the 21^st century.
• Walking quality customers in the lending business for increased business.
• Turnaround time and best practice in the lending market
• Documentations and their importance in the lending business
• Lending as a core function of the lender
• Credit Products offered by the lender
• Types of Borrowers and their specific needs
• Financial Intermediation

 Principles of Lending

• The Principles of Lending          
• Cannons of Good/bad Lending
• Credit Appraisal Techniques-basics
• Introduction to Financial Statements and assessment of the risks in lending proposals- basics

 Monitoring & control

• Effective collection methods
• Problem Spotting – The Tell-Tale Signs:

• Signals from the lender’s Internal Information
• Signals from External Information
• Sectorial Signals

• Considerations for Effective Monitoring & Controls

When things go wrong

• Reasons for failure
• The causes for classified debts
• The cost of classified debts
• The skill set of a Debt Collection/ Recovery Manager

 COURSE OUTLINE:

(HODs/Branch Managers)

DURATION: 3 DAYS

Review of the credit formation process

• Analysis of the Risks in the Lending.
• The right parameters for credit applicants.
• Market responses in the post-COVID-19 times.

• Prospective borrowers in the post-COVID-19 times.
• Best practice in lending business

• Decision & Disbursement.

 Securities for Bank Advances

• Definitions – secured and unsecured facilities
• Features of Good securities
• The types of securities acceptable by Banks
• Valuation of securities

• Perfection of Securities

• Legal Right
• Equitable right
• Guarantees and indemnities

• Discharge of Charge
• Release of lenders Securities

 Monitoring & control

• Effective collection methods
• Problem Spotting – The Tell-Tale Signs:

• Signals from the lender Internal Information
• Signals from External Information
• Sectorial Signals

• Considerations for Effective Monitoring & Controls

When things go wrong

• Reasons for failure
• The causes for classified debts
• The cost of classified debts
• The skill set of a Debt Collection/ Recovery Manager

 Recovery of NPA:

• Action to take
• Collections/recovery options (soft and hard measures)
• Turnaround situations
• Turnaround Strategies
• Exit situations
• Exit Strategies

At the end of the course, participants will be able to:

1. Effectively sell the products of the Sacco
2. Obtain all information leading to quality customers before granting credit.
3. Interpret all information from the prospective customers into credit values.
4. Give the right credit limit to the customers
5. Monitor and control debt levels leading to better cash flow.
6. Handle and overcome virtually any non-payment platforms.
7. Stress the benefits of business partnership rather than the consequences of failure to pay.
8. Develop a friendly business environment for repeat business
9. Persuade customers to pay without sacrificing goodwill.
10. Increase the Sacco businesses by using credit as a tool of marketing.
11. Improve the customers’ relationships for improved business.

Course coordinator – P.K. KAIRU

Mr. Kairu is a long-standing Credit expert having graduated from Leeds University in the United Kingdom in the field of Credit Management.  He worked in various financial institutions at senior management levels before taking early retirement to start the only school of its kind in Kenya – Kenya School of Credit Management – an institution that trains people in the latest practices in credit management.

Mr. Kairu introduced the career of credit management in Kenya and wrote the first curriculum that has been used by the Kenya Accountants and Secretaries National Examinations Board (KASNEB) to examine students from the year 2001. He has written, Credit Management, the first local book in credit management that is a recommended study guide for KASNEB students and all stakeholders in the credit business.

Mr. Kairu is a former Chairman of the Institute of Credit Management – Kenya, an associate of Gretsa University Senate, Director of Studies at the Kenya School of Credit Management and a lecturer of the core units in Credit Management.