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

ELEMENT

PERFORMANCE CRITERIA

1. Advise potential clients on appropriate factoring or invoice discounting arrangements

1.1. Different types of arrangements that may be offered to prospective clients are identified

1.2. Clients are advised of the different policies and procedures that should be followed in relation to the different types of products

1.3. Prospective clients' financial position is assessed from information provided and the and advantages and disadvantages of various debt assignment options and products

1.4. Clients are advised on the different types of legal assignment of debt that relate to each type of product

2. Manage the relationship between the debtor and factor or invoice discounter

2.1. Information is provided to the debtor as appropriate to the type of product and in accordance with statutory and legislative guidelines

2.2. Debt recovery arrangements including all terms and conditions are established with the debtor

3. Manage the relationship between the client and the factor or invoice discounter

3.1. Clients are advised clearly and comprehensively how the relationship will proceed

3.2. Ongoing monitoring review procedures are established with the client using questioning to confirm full understanding

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 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

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.

Unit sector

Credit management

This unit contains employability skills.