Optimize AR & Credit Policies for Effective Cash Flow Control

Why This Course

Accounts receivable management plays a critical role in protecting cash flow, strengthening working capital, and improving overall financial performance. When AR processes are weak, organizations can face delayed collections, rising overdue balances, poor visibility of receivables, increased bad debt, and unnecessary pressure on liquidity.

Effective credit policy development helps organizations balance sales growth with financial risk control. It provides clear guidance on credit evaluation, payment terms, credit limits, customer risk monitoring, collections, dispute handling, and escalation procedures. When credit and AR functions work together, organizations can reduce Days Sales Outstanding, improve collection performance, and make stronger decisions about customer credit exposure.

This intensive 5-day course provides a comprehensive overview of accounts receivable management and credit policy development. Through practical exercises, case studies, credit assessment tools, collection workflow design, and KPI dashboard activities, participants will learn how to optimize AR processes, reduce credit risk, improve cash flow, and strengthen financial control.

What You’ll Learn and Practice

By joining this program, you will:

• Understand the full accounts receivable lifecycle and its impact on cash flow.
• Identify key performance indicators for AR and credit management.
• Apply best practices in invoice management, billing, and receivables monitoring.
• Develop and implement effective credit policies aligned with organizational goals.
• Use credit evaluation techniques and scoring models.
• Set appropriate credit limits, payment terms, and approval procedures.
• Align credit policy with sales objectives, cash flow needs, and financial risk appetite.
• Apply tools for credit risk assessment and portfolio monitoring.
• Manage high-risk accounts, credit holds, and exposure limits.
• Design effective collection processes and workflows.
• Handle late payments, delinquent accounts, and customer disputes professionally.
• Understand legal considerations in collections and debt recovery.
• Use technology, automation, analytics, and ERP integration to improve AR performance.
• Measure and report AR and credit policy effectiveness using dashboards and KPIs.

The Program Flow

Day 1: Foundations of Accounts Receivable Management

• Overview of the accounts receivable lifecycle.
• Understanding the impact of AR on cash flow, liquidity, and working capital.
• Key performance indicators for AR management.
• Days Sales Outstanding, aging analysis, collection effectiveness, bad debt ratio, and dispute levels.
• Best practices in invoice management and billing.
• Introduction to credit policy development.
• Practical exercise: Assessing current AR performance and identifying improvement areas.

Day 2: Credit Policy Development and Implementation

• Elements of an effective credit policy.
• Defining credit objectives, responsibilities, approval levels, and controls.
• Credit evaluation techniques and scoring models.
• Setting appropriate credit limits and payment terms.
• Aligning credit policies with sales and financial objectives.
• Communicating and implementing credit policy across departments.
• Workshop: Developing a customized credit policy template for your organization.

Day 3: Credit Risk Assessment and Management

• Tools and techniques for credit risk analysis.
• Reviewing financial information, payment history, references, and external credit data.
• Managing credit exposure and portfolio risk.
• Strategies for monitoring and updating credit information.
• Handling high-risk accounts and credit holds.
• Creating escalation rules for credit risk decisions.
• Practical exercise: Implementing a risk-based approach to credit limit setting and monitoring.

Day 4: Collections Strategies and Dispute Resolution

• Developing effective collection processes and workflows.
• Segmenting customers based on risk, value, and payment behavior.
• Techniques for handling late payments and delinquent accounts.
• Communication strategies for professional collections.
• Dispute management and resolution strategies.
• Legal considerations in collections and debt recovery.
• Workshop: Creating an action plan to optimize AR processes and reduce DSO.

Day 5: Technology and Analytics in AR and Credit Management

• Leveraging AR automation and credit management software.
• Using technology to improve billing, reminders, dispute tracking, and collections.
• Data analytics for improved decision-making and forecasting.
• Integrating AR and credit processes with ERP systems.
• Measuring and reporting on AR and credit policy effectiveness.
• Designing KPI dashboards for AR and credit management.
• Final activity: Presenting an AR improvement and credit policy performance dashboard.

Individual Impact

• Strengthen your understanding of accounts receivable and credit management practices.
• Improve your ability to develop and apply effective credit policies.
• Build practical skills in credit risk assessment, collections, and dispute handling.
• Gain confidence in using KPIs and analytics to monitor AR performance.
• Improve your ability to reduce overdue balances and support cash flow improvement.
• Develop practical tools that can be applied immediately in finance and credit operations.

Work Impact

• Improve cash flow, working capital, and financial visibility.
• Reduce credit risk, overdue receivables, and bad debt exposure.
• Strengthen consistency in credit approval, monitoring, and collections.
• Improve coordination between finance, sales, customer service, and operations.
• Reduce Days Sales Outstanding through stronger AR processes.
• Support better decision-making through dashboards, analytics, and performance reporting.

Training Methodology

This program uses a practical and finance-focused approach to help participants improve AR and credit management in real business environments. Learning methods include:

• Interactive discussions and guided facilitation.
• Accounts receivable and credit management case studies.
• Credit policy development workshops.
• Credit scoring and risk assessment exercises.
• Aging analysis and DSO improvement activities.
• Collections communication and dispute resolution scenarios.
• AR automation and ERP integration discussions.
• KPI dashboard design and performance reporting exercises.

Beyond the Course

Upon completion, participants will be prepared to manage accounts receivable and credit policies with greater structure, confidence, and financial discipline. They will return ready to:

• Develop a customized credit policy template for their organization.
• Optimize AR processes and reduce Days Sales Outstanding.
• Apply risk-based credit limit setting and customer monitoring.
• Improve collection workflows and dispute resolution practices.
• Use technology and analytics to streamline AR and credit management.
• Design KPI dashboards for tracking AR and credit policy performance.