Assessor Resource

BSBCCO305B
Process credit applications

Assessment tool

Version 1.0
Issue Date: May 2024


This unit applies in customer contact environments where assessing credit risk and recovering debts are either core functions or elements of broader customer service and sales delivery.

This work is undertaken with some supervision and guidance.

This unit describes the performance outcomes, skills and knowledge required to handle credit applications or arrangements for customers with no credit rating or a poor credit rating and as required by an organisation.

Competence in this unit requires sound credit assessment outcomes, arrangement of effective debt-recovery initiatives or programs, and negotiation of various outcomes with customers.

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

Prerequisites

Not applicable.

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:

apply organisational credit procedures

determine customer capacity to pay

discuss and explain nonapproval to customers

negotiate credit terms and payment arrangements with customers

demonstrate knowledge of legislative, regulatory and industry code requirements.

Context of and specific resources for assessment

Assessment must ensure access to:

organisational credit policies and standard operating procedures

workplace information and data

relevant information on legislation, regulations, codes of practice, hardship programs and standards.

Method of assessment

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

direct questioning combined with review of portfolios of evidence and third-party workplace reports of onthejob performance by the candidate

oral and/or written questioning to assess knowledge of credit policies and procedures

review of calculations of capacity to pay and payment arrangements

review of quality assurance and performance management records

review of notes on accounts

review of customer’s adherence to payment arrangements or arrears history

direct observation during credit application contact.

Guidance information for assessment

Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended, for example:

BSBCUS301B Deliver and monitor a service to customers

BSBWOR201A Manage personal stress in the workplace.

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

communication and negotiation skills to:

effectively and clearly communicate with customers at all levels

listen and ask questions to understand and clarify the needs of internal and external customers

conflict resolution skills to effectively and calmly manage and resolve conflict situations

literacy skills to clearly articulate information and advice via all contact media

numeracy skills, including:

budgeting

financial management to solve credit issues and problems

problemsolving skills to apply a range of problem-solving strategies

selfmanagement skills to:

comply with policies and procedures

manage personal stress during difficult customer contact

seek learning and development opportunities.

Required knowledge

conflict resolution and negotiation techniques to facilitate effective customer service resolution

credit and debt-recovery principles and techniques

financial delegations and limits applied within organisation and specific to role

legislative, regulatory and industry code requirements in relation to credit approval processes

organisational credit management policies and procedures

stress-management techniques to avoid burnout and personal pressure.

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.

Credit management proceduresmay include:

call-handling processes

escalation process

financial delegation and authorisation limits

hardship policies

internally developed guidelines

referral to specialist groups.

Relevant legislation, codes, regulations and standardsmay include:

credit and finance Acts and codes

Consumer Credit Code

Do Not Call Register

equal employment opportunity and antidiscrimination legislation

freedom of information

hardship policies

industry-specific codes, regulations and legislation

occupational health and safety legislation

Privacy Act

Trade Practices Act/Competition and Consumer Act

Payment arrangementsmay include:

agreed instalments

cash

cheque

credit card

direct debit

EFTPOS

electronic payment, e.g. BPAY.

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
Review application to determine customer details and amount of credit required 
Check existing customer records for payment history and credit standing 
Obtain customer credit rating according to credit management procedures 
Establish customer’s credit rating and ability to repay credit advances 
Approve or decline application according to organisational policy and relevant legislation, codes, regulations and standards 
If declining, explain the decision to the customer and discuss alternative arrangements as necessary 
Advise customer of appeal rights where appeal provisions exist and apply 
Negotiate and agree payment arrangements with customer where credit approval is granted 
Escalate difficulties experienced in customer negotiations according to organisational policy 
Complete and forward appropriate documentation to customer 
Organise credit arrangements and record details according to organisational policy and legislative requirements 
Notify customer of payment arrangements according to organisational procedures 
Regularly monitor and follow up customer commitments 
Resolve outstanding issues relating to credit application in an efficient and timely manner 

Forms

Assessment Cover Sheet

BSBCCO305B - Process credit applications
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

BSBCCO305B - Process credit applications

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: