The unit may be adapted to meet the specific needs of credit management and debt recovery job roles.

ELEMENT

PERFORMANCE CRITERIA

1. Satisfy initial enquiry

1.1. Customer initial enquiries on the type, range and availability of credit are responded to and information provided in ways which show courtesy and respect for and recognise the special needs of the customer

1.2. Basic information such as terms and conditions and interest rate are advised and potential securitisation needs determined in accordance with credit policy and legislative requirements

2. Assess and monitor credit information

2.1. Credit applications and documentation are verified in accordance with organisation policy and procedures to maintain accuracy of credit database information

2.2. Credit information is analysed to establish that sufficient evidence of accurate information has been provided

2.3. Processing of applications is completed in accordance with organisation risk policy and timelines

2.4. Continuing liaison with debtor and relevant internal and external personnel is maintained to ensure information is kept up to date and disseminated appropriately

3. Assess the risk

3.1. Applicant's financial circumstances are identified in order determine the level of risk associated with the application

3.2. Possible risks associated with the application or applicant are identified and evaluated in order to minimise or protect against risk

3.3. The need to take security to minimise risk exposure is identified in accordance with organisation credit policies

3.4. Assessment is documented in accordance with organisation procedures

4. Establish credit terms and limits

4.1. Credit decision is made based on assessed information and in accordance with organisation risk management policy

4.2. Credit terms and limits are determined within organisation credit policy guidelines and current criteria for risk management objectives and customer is advised of the credit decision promptly and courteously

4.3. Credit account administration is completed according to organisation credit policy and timelines and legislative requirements

Required skills

communication skills to:

determine and confirm credit requirements and to clarify, discuss and update account information, 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 credit related calculations

use credit assessment software, spreadsheets and databases

access web-based information services

researchand analysis skills for accessing, interpreting and managing credit application and assessment information to determine credit terms and limits

interpersonal skills to deal effectively with credit applicants and to liaise with other team members

judgement skills for making credit assessments

organisational skills, including the ability to plan and sequence work

Required knowledge

developments in the credit management sector

organisational policy, procedures and systems

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:

thoroughly and accurately check application details

interpret and apply appropriate legislation

implement organisation credit policy

efficiently use data entry and recording systems.

Context of and specific resources for assessment

Assessment must ensure:

competency is demonstrated in the context of the 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 organisation financial records.

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

evaluating samples of work

accessing and validating third party reports.

Guidance information for assessment

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.

Special needs of the customer may include needs related to:

age

cultural background

comprehension

disability

the language.

Credit policy includes reference to:

compliance

national Consumer Credit Code requirements

income

satisfactory credit history

security requirements.

Organisation policy and procedures may cover:

accepting and rejecting credit applications

gathering information and its evaluation

legal obligations and framework

liaison, information dissemination and marketing to internal and external parties

maintenance of customer account files

organisation procedures, practices and securitisation

overall organisation goals and objectives

reviewing and adjusting credit limits for established customers

setting credit limits or credit lines for applications

trading terms and credit limits.

Credit database information may include:

account records

agency reports

credit management records

judgements

master client list

trade overseas information

trade reference information.

Credit information may include:

changes in organisation charges

creditworthiness

director or shareholder changes

economic conditions including interest rates

entity details, addresses and locations

financial information such as:

cheque accounts

credit agreements

budget accounts

add-on accounts

lending authorities, personal loans and mortgages

marketing patterns in the economy

payment patterns

purchasing patterns

remittance details

letters of credit

promissory notes

bills of sale

purchase orders

trading entities and variations.

Security may include:

application may be for an unsecured or secured loan

goods mortgage

real property mortgage

third party security:

co-borrower

guarantor

Personal Property Securities Act requirements.

Legislative requirements may include:

Australian Securities and Investments Commission (ASIC) Act

Bankruptcy Act

Bills of Sale and Other Instruments Act

Cheques and Payment Orders Act

contract law

Corporations Act

Door to Door Sales Act or equivalent

Evidence Reproduction Act or equivalent

Fair Trading Act

Magistrate's Court Act

National Consumer Credit Protection Act

partnership Acts

Personal Property Securities Act

Privacy Act

Small Debts Court Act or equivalent

Trade Practices Act.

Unit sector

Credit management

This unit contains employability skills.