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.
Not applicable.
1. Review and evaluate credit application | 1.1 Review application to determine customer details and amount of credit required 1.2 Check existing customer records for payment history and credit standing 1.3 Obtain customer credit rating according to credit management procedures 1.4 Establish customer’s credit rating and ability to repay credit advances |
2. Process credit application | 2.1 Approve or decline application according to organisational policy and relevant legislation, codes, regulations and standards 2.2 If declining, explain the decision to the customer and discuss alternative arrangements as necessary 2.3 Advise customer of appeal rights where appeal provisions exist and apply |
3. Negotiate credit application details with customer | 3.1 Negotiate and agree payment arrangements with customer where credit approval is granted 3.2 Escalate difficulties experienced in customer negotiations according to organisational policy |
4. Complete administrative arrangements | 4.1 Complete and forward appropriate documentation to customer 4.2 Organise credit arrangements and record details according to organisational policy and legislative requirements 4.3 Notify customer of payment arrangements according to organisational procedures 4.4 Regularly monitor and follow up customer commitments 4.5 Resolve outstanding issues relating to credit application in an efficient and timely manner |
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
problem
self
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 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 non 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 on 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. |
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 procedures | call-handling processes escalation process financial delegation and authorisation limits hardship policies internally developed guidelines referral to specialist groups. |
Relevant legislation, codes, regulations and standards | credit and finance Acts and codes Consumer Credit Code Do Not Call Register equal employment opportunity and anti 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 arrangements | agreed instalments cash cheque credit card direct debit EFTPOS electronic payment, e.g. BPAY. |
Stakeholder relations – contact centre operations
This unit contains employability skills.
No licensing, legislative, regulatory or certification requirements apply to this unit at the time of endorsement.