Advanced Diploma in Credit Management
Business, Commerce and Management Studies - Finance Economics and Accounting
Purpose and Rationale
Purpose:
The purpose of the Advanced Diploma in Credit Management is to equip learners with knowledge, skills and competencies to perform or conduct any credit-related activity within credit departments of various organisations. The qualification prepares learners to conduct preliminary research and to perform operations relating to consumer and corporate credit. On completion of the qualification, learners will be able to further their career in credit management by registering for a Postgraduate Diploma in Credit Management. This qualification has the potential to enable learners to take advantage of promotion opportunities in the workplace. Upon completing the qualification, learners will be able to:
- Supervise tasks related to loan processing, business ethics, estates, business law, financial statements, business finance and office management in general.
- Analyse financial statements of companies applying for credit, as a further tool in advanced credit risk analysis.
- Supervise the implementation of a performance management system.
- Acquire and monitor insurance policies as control measures for the credit department, to ensure a higher level of loss prevention.
- Promote ethical business practices within the context of granting of credit.
Rationale:
The Advanced Diploma in Credit Management equips learners with advanced skills in the credit environment to assist them to be more competent and ready for a range of positions within the credit department of any organisation. The qualification is primarily aimed at continuing professional development through the inculcation of a deep and systematic understanding of the current thinking, theories, methodologies and practices in the area of credit management specialisation. Additionally, the qualification provides learners with advanced skills in the credit environment that will assist them to be more competent and ready for any supervisory position within a credit department of any organisation.
Outcomes
- Supervise loan applications from and allocations to customers and debt collections for the Credit Departments of various institutions.
- Review the procedures and processes to be followed in the recovery of debt in accordance with the National Credit Act.
- Analyse financial statements of companies applying for credit, as a further tool in advanced credit risk analysis.
- Acquire and monitor insurance policies as control measures for the Credit Department, to ensure a higher level of loss prevention.
- Supervise the implementation of a performance management system.
- Promote ethical business practices within the context of granting of credit.
- Demonstrate an ability to use a range of specialised skills to identify, analyse and address complex or abstract research problems drawing systematically on the body of knowledge and methods appropriate to a field, discipline or practice.
- Demonstrate the ability to apply theoretical and analytical financial models.
Assessment Criteria
Associated Assessment Criteria for Exit Level Outcome 1:
- Supervision of loan applications and allocations to customers.
- Supervision of debt collection for the credit department.
- Understanding and explanation of credit, debt recovery, and insolvency concepts and principles.
- Analysis and evaluation of the credit management process.
- Strategic improvement planning based on analysis.
- Analysis and interpretation of financial statements for report compilation.
Associated Assessment Criteria for Exit Level Outcome 2:
- Reviewing debt recovery procedures in accordance with the National Credit Act.
- Following prescribed laws in all debt recovery procedures.
Associated Assessment Criteria for Exit Level Outcome 3:
- Analysis of financial statements of companies.
- Assessment of the creditworthiness of companies.
- Development of credit score reports.
- Description of overall cash flow through the firm in terms of operating flows, investment flows, and financing flows.
Associated Assessment Criteria for Exit Level Outcome 4:
- Acquisition of insurance policies.
- Monitoring insurance policies to ensure a low level of loss.
Associated Assessment Criteria for Exit Level Outcome 5:
- Supervision of the implementation of a performance management system.
- Understanding the differentiation between job specifications and development of job descriptions for a credit department.
- Development of a performance appraisal system.
- Development of a training system for a credit department and outlining an implementation process.
Associated Assessment Criteria for Exit Level Outcome 6:
- Honoring commitments and promises made to customers in credit agreements.
- Compliance with all ethical issues of the business.
Associated Assessment Criteria for Exit Level Outcome 7:
- Utilization of specialized skills to identify and analyze complex or abstract research problems.
- Use of appropriate knowledge and methods to address complex research problems.
Associated Assessment Criteria for Exit Level Outcome 8:
- Illustration of cash flow and financial planning.
- Application of time value of money.
- Explanation and application of bond valuation.
- Exploration and application of risk and return concepts.
- Calculation of cost of capital.
- Evaluation and utilization of capital budgeting techniques.
- Exploration and application of stock valuation.
- Application of dividend policy.
Integrated Assessment:
- Integrated assessment strategy with a combination of formative and summative assessment strategies.
- Use of various assessment methods such as tests, theoretical examinations, practical examinations, projects, case studies, case presentations, and written assignments.
- Communication of outcomes and assessment criteria to learners in writing.
- Application of constructive alignment in teaching, learning, and assessment processes.
Formative and Summative Assessment:
- Formative assessments include a minimum of two assessments in tests, projects, or case studies.
- The summative assessment includes the final examination.
- Implementation of an appropriate assessment policy and procedures for all modes of delivery.
- Ensuring internal and external moderation of learners' achievements.
- Monitoring learner progress and settling disputes regarding assessment results.
- Alignment of assessment tasks to achieve the Exit Level Outcomes.
Qualification Details
- Type
- Advanced Diploma
- NQF Level
- 07
- Min. Credits
- 120
- SAQA Source
- More Information
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