Professional Documents
Culture Documents
MANAGEMENT
Chap 8: Credit Administration Collection Methods and
Procedures
Outline:
Understand the role of cash collections and how to
manage collections ;
The role of cash collections ;
Describe cash collections and management processes
and plan to improve cash collections ;
Managing problem loans and debt
Class of
custome
rs
Collectio
n Policy
Type of
goods
Competiti
on
Legal
Considerations
Prompt
response to
missed
payments
Cost
Effective
Persistenc
e
The
impersonal
routine
stage
The
impersonal
appeals
stage
The
personalized
appeals stage
The
drastic/legal
action stage
Collection devices
Debtors involved
Impersonal routine
Statement
Reminder letter
Honestly overlooked
Careless/procrastinating
Impersonal appeals
Telephone
Registered letter/reminder
Honestly overlooked
Disputed account
Personalized appeals
Personal collector
Telephone
Letters to employer etc
Eventually insolvent
Fraud
Accident /misfortune
Drastic/legal action
Repossession
Attorney/suit
Collection agency
Wage assignment
Eventually insolvent
Fraud
Accident /misfortune
Handle routine
communications
Analyze delinquency
Evaluate Collection
Personnel
Group Activity
1) Mamat is a good pay master. He has served the loan
for 10 years. In 2015, he missed out 2 months
payment.
How to approach this type of customer?
Group Activity
Gather in your group of 5 (assignment group).
Each group will be assigned one case as below slides.
You have to discuss in a group and present your solution.
Group Activity
2) Rashid is General Manager in a public listed company.
His monthly earning is RM20,000. However, Rashid often
pay the loan after the due date.
As an loan officer in a bank, what kind of approach
should you take for this problem?
Group Activity
3) Sam is a general worker in a factory. He is working
overtime to support his expenses. Sam is not paying his
instalment for 3 months.
What kind of action to be taken by the bank?
Group Activity
4) Barry is running his automobile business. His business
is profitable. In 2008, during recession, Barrys business
faced problems. Barry unable to pay remaining balance
of his business loans.
What should you do as a credit collector?
Group Activity
5) Maniam is a professional basketball player. Last 6
month, he met an accident and broke his arm. He has
recover from the sickness, however, from that event, his
performance is not up to the standard. His Cheetah
Warrior Club want to terminate his service term in 3
months time. He met the bank manager to discuss his
loan.
As a bank manager, what is your action on this case?
THE END