Syllabus F4. Debt collection 5 / 5

a) Identify the main methods used to identify potential problems with credit customers meeting their payment obligations.
b) Describe ways in which credit customers could be encouraged to pay promptly including effects of offering discounts
c) Describe the main techniques and methods that may be used to assist in the collection of overdue debts.
d) Identify debt recovery methods appropriate to individual customers.
e) Explain procedures for writing off debts (double entry recording is excluded).
f) Describe how factoring works and the main types of service provided by factors.
g) Define invoice discounting and outline how this form of factoring works.
h) Calculate the cost of factoring arrangements, invoice discounting and changes in credit policy.
Debt collection