Learners studying through this college are p rovided with all the study materials needed to complete the course. Learner must submit assignments which are marked and returned to the learner via e-mail. On obtaining a minimum average of 50% for ALL assignments, the learner is allowed to write the examination.

On successfully passing the examination, the learner is awarded a PBS College certificate for Part Two, and a letter of credit for the Part from the relevant Institute. After completing Part Three, the learner is awarded the prestigious Certificate in Credit Management by the Institute.

COURSE FEES:

The cost of the course is R4 700,00. In addition to this fee, learners must pay R440,00 examination fee as well as R226,00 membership fee to the Institute - unless this registration fee had already been paid in the current year (this may be paid to the college for onward transmission to the relevant Institute).

The following is a broad content of the syllabus for Part Two of the course:

1. Economical & legislative factors of Credit Management & their impact on customer ability to pay.

• Overdraft
• Asset finance
• Factoring & invoice discounting
• Investors

1. Credit Policy

• Setting policy
• Implementing policy
• Measuring effectiveness of policy

2. Structure of a Credit Management Department

• Organizational structure
• Methods of management
• Role of the Credit manager
• Link to Senior Management & other departments

3. Understanding Budgets, Targets & Provisions

• Importance of performing within budget
• Setting targets & measuring achievement
• Providing for bad debts & credit notes - impact on profit

4. Advance Assessment Skills & Decision making

• Financial Ratios - measuring ability & willingness to pay
• Methods of setting credit limits
• Impact of unrealistic credit limits
• Monitoring & reviewing limits
• Making a decision - factors to be considered:-

- credit worthiness
- purchasing power
- company's own need to trade (the bigger picture)
- anticipated profit margin
- risk involved
- legislation impact

5. Securing an Account

• Theory of Securities -
  
  - Role of securities
  - Securities available
  - Documentation required
  - Cost in taking securities
  - Value of security when taken
  
  
• Practical application of securities-
  
  - Value of security when needed
  - Maintaining securities
  - Perfecting securities
  - Limitations of Securities
• Insurance
  
  - Debtors - Goods

6. Administrative Controls

Role of the Computer
• Using computers to maximum advantage

- Understanding on - line systems & the interdepartmental links
- Importance of passwords & authority levels
- Exception reports & their uses
- Importance of accuracy when capturing data

• Individual responsibility & accountability within company policies
• Cash Sale Reconciliation & controls
• Documentation Controls
• Service Procedures

7. Supervising the Department -

• Collection Targets

- Measuring performance
- Team Building

8. Debt re-scheduling

• Dangers involved
• Accepting A.O.D's
• Acceleration Clause
• Third party Collections

9. Legal Action on Delinquent debtors

• Court Jurisdiction

• When to consider this route
• Instructing an attorney
• Limitations of the legal process
• Costs involved
• Procedure to Judgement
• Legal terminology

• Terminology
• Legal restrictions
• Documentation
• Assessment Procedures
• Terms
• Insurance
• VAT Implications
• Dealing with external agents

11. Consumer Credit

• Legislation restrictions & impact
• Developing assessment models
• Performance Scoring
• Supervision of Collections
• Target Setting
• Result measurement

12. Introduction to Banking Credit

• Consumer
• Commercial

13. Contracts of Purchase and sale

14. The role of Micro Lenders in South Africa

15. Introduction to Liquidations / Insolvency

16. Internal & External Audit & their requirements.