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Fundamentals of Credit Management

This free online course will arm you with the knowledge required to manage credits and set effective payment conditions.

Publisher: Zenith Academics
This Fundamentals of Credit Management course has been designed to impart to learners the best credit management techniques. This course teaches the principles of lending and the various types of borrowers. By taking this course, you will learn how to analyze income statements, how to analyze and interpret ratios like liquidity and solvency ratios and you will also learn about working capital loans and appraisal loan terms.
Fundamentals of Credit Management
  • Duration

    1.5-3 Hours
  • Students

  • Accreditation


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This Fundamentals of Credit Management course has been designed to help credit managers find worthy borrowers and also to help credit managers set effective credit repayment payment terms and conditions. This course begins with the basics of fundamental management, here, you will learn the first step in credit management which is to check the borrower’s credentials, capital, and character, this will help understand their willingness and capacity to repay the credit, then you will learn the role of the credit officer which includes analyzing and verifying all data provided by the borrower, undertaking due diligence at each step, evaluating the underline risk of financing before making make a final decision. Next, you will be introduced to the principles of lending, here, you will learn about banking risks and their types which include liquidity risk, credit or default risk, operation risk, and strategic risk. You will then learn about due diligence and types of borrowers which includes individual borrowers, partnership firms, and Hindu undivided family, and also the features of a company which will include a separate entity, perpetuity, separate property, and a common seal.

In this course, you will be introduced to the income statement, you will learn its importance in the business which includes providing well-detailed information about the income stream of the business during the year and also providing a list of expenses made by the business during the period and you will also be taught how to analyze the income statement. Next, you will learn about the work operating cycle of a business which can either be a gross operating cycle or a net operating cycle, you will also learn about ratio, which is defined as the relationship between two variables, ratios are categorized into four types, these include turnover ratio, solvency ratios and profitability ratio which measure the capacity of the concerned to earn profits. Finally, you will learn about working capital loans which could be fund-based support in cash form or non-fund based and you will also learn how to calculate the drawing power. Next, you will learn about depreciation and the role of the debt service coverage ratio in ensuring the borrower meets his debt obligations.

Credit management is the process of finding and verifying the worthiness of a borrower, setting the terms on which the credit is granted, recovering the credit when the time is due, and ensuring strict compliance with company credit policy. Credit management if done will improve the cash flow and reduce the rate of late credit payments in the company. By taking this course on Alison.com you will gain the necessary knowledge and skills required to manage credits which will help you maintain strong cash flow in the company and Obtain security interests where necessary and this will be a boost for your career and your company, so, what are you waiting for? Take this course today and acquire a new skill.

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