Collection Procedures and Processes

Module Description

One of the major challenges that a business organisation selling on credit faces in today’s business environment is surely that of being paid on time. Statistics show that late payment varies from industry to industry and from one country to another. From the annual survey conducted by MACM, and when compared to other European countries, Malta is one of the worst markets when it comes to prompt payment. However, businesses still use credit as an effective marketing tool to increase their revenue, whilst customers consider credit as a cheap and essential source of finance.

However, both the creditor and the customer should be aware that credit is granted not only to make sales possible, but also to build and maintain a mutual long-term business relationship between the seller and the buyer, and this business relationship should justify the costs and risks involved in granting and managing credit. In other words, it is to be clearly understood by all the stakeholders that the creditor is investing money in the customer’s business when credit is , and as any other investment, it should be profitable.

Efficient collection practices are important to minimise late payment and bad debts. However, effectiveness and efficiency in collection practices can only materialise if the people involved in cash collection are themselves skilled and determined.

To manage cash flow effectively, suppliers that sell on credit (creditors) should develop and implement an effective internal system that assists them in collecting their dues on time from their customers. Thus, protecting their liquidity, cash flow, and profit. Nevertheless, this system requires skilled and trained staff as they must possess positive attitude and behaviour when dealing with customers at this critical stage.

Entry Requirements

Candidates who apply for this course will possess:

• A qualification at MQF Level 4 (one ‘A’ Level or equivalent in any subject/ a related (professional) qualification)
• a pass in English Language* and Mathematics at MQF Level 3 (‘O’ Level or equivalent).

In the case of students who do not possess all the formal required academic qualifications, then the Recognition of Prior Learning (RPL) process could be applied such that if evidence of equivalent learning and/or related experience (e.g., assistant accountant, credit controller, etc.) is found then the applicant could still be accepted on the course.

Evidence may include:

• A detailed CV outlining relevant work experience and responsibilities.
• Employer reference letters outlining job role, duration, and key competencies.
• Related documentation demonstrating relevant skills (e.g. work portfolio).
• Such RPL process may subject applicants to an interview held with a board of experts within the field, chosen specifically by IDEA College, so as to verify their practical knowledge, experiences, and prior learning.

*Students whose first language is not English and do not possess an ‘O’ level pass in English Language will be required to demonstrate English language capability at IELTS level 6.0 or equivalent.

Target Audience

This qualification targets:

• Individuals seeking to advance their academic and professional knowledge in Credit Management and Collections.
• Individuals wanting to pursue a wide range of career paths within this field.
• Individuals wanting to enhance their ability to interpret, assess and communicate credit management related information.

Career Paths

This programme equips the audience with the competences, knowledge, and skills listed in this application. The potential positions for which this programme aims to prepare could be and are not limited to:

• Credit manager
• Credit controller.
• Credit analyst.
• Collections specialist.
• Financial assistant.

How you’ll be assessed

The course comprises:

• Evening classes for part-time courses.
• Classes held throughout the day for full-time courses.
• Guided learning, presentations, comprising synchronous online discussions, tutorials and/or videos.
• Self-study hours comprising research, reading and assignment work.

Assessment

Assessment is carried out via two mandatory components:

• Assessment 1
• Assessment 2

The programme includes different forms of assessment which allow for and promote students’ critical engagement. The formative and summative assessment tasks may include an in-class assignment and/or a home-based written assignment using diverse assessment tools which may take the form of online and in-class discussions, examinations, case studies, reports, proposals, essays, and presentations, etc., as applicable to the diverse modules.