How To Handle Hard Core Customers & Reducing Non Performance Loan & Bad Debts

Denny HaRTANTO
Debt Collection

2 days workshop

INTRODUCTION

In order to Reduce Non-Performance loan (NPL) or Debts, you need to have the heart of an entrepreneur. Bankruptcy (Amendment) Bill 2016 was passed by Parliament on 29th Marc 2017. This course will help to provide you with an environment that stimulates proactive behavior in order to achieve greater goals for yourselves and your organization. By creating value for your organization, you will be amazed at the speed of career advancement. Real-current problematic debt cases will be analyzed and scenario solutions will be provided under the guidance of Dr. Steven Liew.

COURSE OBJECTIVES                                                                                                                                   
By the end of this course you will be able to:

  • Understanding Bankruptcy (Amendment) Bill 2016

  • Understanding Negotiation Techniques 

  • Profiling Your Customers

  • Use Practical Debt Recovery Approaches

  • Understand Legal Debt Recovery Strategies

  • Know When to Initiate Legal Actions

  • Importance of Putting Your House in Order 

  • Understand Collection Case Studies

METHODOLOGY
Case Study & Group Discussion. Real-current problematic debt cases will be analyzed and scenario solutions will be discussed within the workshop.

WHO SHOULD ATTEND

Bankers, Accountants, Business Managers, Marketing Managers, Collection Executives, Sales Executives, Finance Executives, Supervisors, Managers, Credit Analysts, Credit Controller & Recovery Officers.

Special Feature: NOTE: Please bring laptop along

PROGRAMME OUTLINE

Day 1

Module 1: Burning Issues in Debt Recovery 

  • Uncontactable/Missing customers

  • Contactable-but can’t afford to pay

  • Avoid payment with thousand reasons

  • Interference from top management on collection section

  • Customer delay payment purposely

  • Incomplete document

  • Financial /Cash flow problem

Module 2: Strategies to Reduce NPL or Debts

  • Know your customers

  • Plan your site visit

  • Focus on collectable & big customers

  • Lead by example

  • Be flexible, creative & think out of the box (ways & means to speed up the collection process)

  • Recovery techniques (outsourcing, insourcing, legal, asset conversion, take over, revaluation)

  • Put your house in order (credit evaluation 7cs, management support & involvement, clear SOP & strong credit manpower team)

  • Consider collection risk model (cost & benefit analysis)

  • Develop qualities of effective collectors

Module 3: How to Deal with Different Type of Difficulty Customers

  • Give empty promises 

  • Avoiding 

  • Giving thousand excuses

  • Annoying attitude

Module 4: Know Your Customers

  • Customer Risk Profile

  • Assessing Your Risk Factors 

  • Why Customers Are Not Paying You?

  • Plan your site visit

  • Focus on collectable & big customers

Module 5: Be Flexible, Creative & Think Out of The Box Approach

  • Outsourcing (collection agency)

  • Insourcing (staff incentive)

  • Asset conversion

  • Business Take over

  • Revaluation of assets

Day 2

Module 6: Collection Negotiation Tactics

  • The building block technique

  • Silence

  • Repeat, repeat…

  • Recess

  • Divide & rule

  • Empathy

  • Re-escalation of demand

  • “One more thing”

  • Deadlines

  • Slicing

  • Module 7: Put Your House in Order

  • Credit evaluation & Monitoring ,7cs

  • Management support & involvement

  • Clear SOP 

  • Strong credit manpower team

  • Qualities of an effective collectors

Module 8: Collection Case Studies (Part 1)

  • Case Study 1 (Negotiation Skill) 

  • Case Study 2 (Credit Evaluation) 

  • Case Study 3 (Handling Difficulty Debtor)

  • Case Study 4 (Bank Branch Manager Task)

  • Case Study 5 (Head of Credit Controller Task)

  • Case Study 6 (Dealing with NPL borrowers) 

  • Case Study 7 (Detecting early warning sign)  

  • Case Study 8 (Government Accounts)   

Module 9:  Legal Procedure 

  • What to Do Before Litigation

  • Contents of Letter of Demand

  • Factors to Consider Before Suing

  • Preparation for Suing

  • Preparation for Trial

  • Enforcement of Judgments

Module 10: Bankruptcy (Amendment) Bill 2016

  • Voluntary Arrangement introduced as a new rescue mechanism

  • Stringent requirements for service of bankruptcy notice and creditor’s petition

  • Single order of bankruptcy introduced

  • Minimum debt threshold has been increased

  • Stronger protection for social guarantors

  • Leave of court required to commence bankruptcy proceedings against other guarantors

  • New list of bankrupts to be allowed discharge

  • Automatic discharge introduced

Entrepreneurial Approach to Credit Management & Debt Recovery

Debt Collection & Legal Process

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