Assessor Resource

FNSCRD502A
Manage factoring and invoice discounting arrangements

Assessment tool

Version 1.0
Issue Date: May 2024


The unit may be applied within financial organisations of various sizes and across a range of customer bases.

This unit describes the performance outcomes, skills and knowledge required to arrange for the factoring of debts or invoice discounting.

This unit has application to a variety of financial services sectors and is applicable to individuals working within enterprises and job roles subject to licensing, legislative, regulatory or certification requirements so the varying Commonwealth, State or Territory requirements should be confirmed with the relevant body.

You may want to include more information here about the target group and the purpose of the assessments (eg formative, summative, recognition)

Employability Skills

This unit contains employability skills.



Evidence Required

List the assessment methods to be used and the context and resources required for assessment. Copy and paste the relevant sections from the evidence guide below and then re-write these in plain English.

The Evidence Guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.

Overview of assessment

Critical aspects for assessment and evidence required to demonstrate competency in this unit

Evidence of the ability to:

interpret and comply with relevant legislation

accurately check customer accounts

exhibit appropriate empathy to customers

analyse relevant company data.

Context of and specific resources for assessment

Assessment must ensure:

competency is demonstrated in the context of the financial services work environment and conditions specified in the range statement either in a relevant workplace or a closely simulated work environment

access to and the use of a range of common office equipment, technology, software and consumables

access to organisational policies and procedures for debt factoring and invoice discounting and relevant legislation.

Method of assessment

A range of assessment methods should be used to assess practical skills and knowledge. The following examples, in combination, are appropriate for this unit:

evaluating an integrated activity which combines the elements of competency for the unit or a cluster of related units of competency

verbal or written questioning on underpinning knowledge and skills

setting and reviewing business simulations or scenarios

accessing and validating third party reports.

Guidance information for assessment

Submission Requirements

List each assessment task's title, type (eg project, observation/demonstration, essay, assingnment, checklist) and due date here

Assessment task 1: [title]      Due date:

(add new lines for each of the assessment tasks)

Assessment Tasks

Copy and paste from the following data to produce each assessment task. Write these in plain English and spell out how, when and where the task is to be carried out, under what conditions, and what resources are needed. Include guidelines about how well the candidate has to perform a task for it to be judged satisfactory.

Required skills

well-developed communication skills to:

clarify, discuss and update debt situations with customers using questioning and active listening as required

liaise with others, share information, listen and understand

use language and concepts appropriate to cultural differences

numeracy and IT skills to:

perform debt factoring calculations

use relevant software, spreadsheets and databases

access web based information services

research and analysis for accessing, interpreting and managing business and personal information to determine debt factoring and invoice discounting advantages and disadvantages

well-developed judgement skills for making debt factoring and invoice discounting determinations

organisational skills, including the ability to plan and sequence work

Required knowledge

current organisational policy and procedures for debt factoring

debt factoring options and characteristics

relevant current debt management legislation

The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.

Policy and procedures may include, but are not limited to:

assistance to customers on billing and collection problems

gathering debt information and its evaluation

legal obligations and framework

making billing adjustments to customer account files

minimising risk

reviewing and adjusting credit limits for established customers

trading terms and credit limits.

Advantages and disadvantages may include, but are not limited to:

cost saving through outsourced administration

immediate cash flow

maintenance of good customer relationships

recovery of costs associated with debt

risk reduction

security

working capital for growth.

Statutory and legislative guidelines may include, but are not limited to:

appropriate sections of the Tax Act

Bankruptcy Act

Bills of Sale and Other Instruments Act

Cheques and Payment Orders Act

Corporations Act

Criminal Act

equal opportunities legislation

Fair Trading Act

Magistrates' Court Act

National Consumer Credit Protection Acts

Partnership Act

Personal Property Security Act

Privacy Act

Small Debts Court Act or equivalent

Trade Practices Act.

Terms and conditions may include, but are not limited to:

agreement components

asset control

cooperation factoring

debtor administration

invoice discounting.

Copy and paste from the following performance criteria to create an observation checklist for each task. When you have finished writing your assessment tool every one of these must have been addressed, preferably several times in a variety of contexts. To ensure this occurs download the assessment matrix for the unit; enter each assessment task as a column header and place check marks against each performance criteria that task addresses.

Observation Checklist

Tasks to be observed according to workplace/college/TAFE policy and procedures, relevant legislation and Codes of Practice Yes No Comments/feedback
Different types of arrangements that may be offered to prospective clients are identified 
Clients are advised of the different policies and procedures that should be followed in relation to the different types of products 
Prospective clients' financial position is assessed from information provided and the and advantages and disadvantages of various debt assignment options and products 
Clients are advised on the different types of legal assignment of debt that relate to each type of product 
Information is provided to the debtor as appropriate to the type of product and in accordance with statutory and legislative guidelines 
Debt recovery arrangements including all terms and conditions are established with the debtor 
Clients are advised clearly and comprehensively how the relationship will proceed 
Ongoing monitoring review procedures are established with the client using questioning to confirm full understanding 

Forms

Assessment Cover Sheet

FNSCRD502A - Manage factoring and invoice discounting arrangements
Assessment task 1: [title]

Student name:

Student ID:

I declare that the assessment tasks submitted for this unit are my own work.

Student signature:

Result: Competent Not yet competent

Feedback to student

 

 

 

 

 

 

 

 

Assessor name:

Signature:

Date:

Assessment Record Sheet

FNSCRD502A - Manage factoring and invoice discounting arrangements

Student name:

Student ID:

Assessment task 1: [title] Result: Competent Not yet competent

(add lines for each task)

Feedback to student:

 

 

 

 

 

 

 

 

Overall assessment result: Competent Not yet competent

Assessor name:

Signature:

Date:

Student signature:

Date: