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Evidence Guide: BSBCCO305A - Process credit applications

Student: __________________________________________________

Signature: _________________________________________________

Tips for gathering evidence to demonstrate your skills

The important thing to remember when gathering evidence is that the more evidence the better - that is, the more evidence you gather to demonstrate your skills, the more confident an assessor can be that you have learned the skills not just at one point in time, but are continuing to apply and develop those skills (as opposed to just learning for the test!). Furthermore, one piece of evidence that you collect will not usualy demonstrate all the required criteria for a unit of competency, whereas multiple overlapping pieces of evidence will usually do the trick!

From the Wiki University

 

BSBCCO305A - Process credit applications

What evidence can you provide to prove your understanding of each of the following citeria?

Review and evaluate credit application

  1. Review application to determine customer details and amount of credit required
  2. Check existing customer records for payment history and credit standing
  3. Obtain customer credit rating in accordance with credit management procedures
  4. Establish credit rating and customer's ability to repay any credit advances
  5. Observe relevant legislation, codes, regulations and standards
  6. Approve or decline application in accordance with organisational policy
Review application to determine customer details and amount of credit required

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Check existing customer records for payment history and credit standing

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Obtain customer credit rating in accordance with credit management procedures

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Establish credit rating and customer's ability to repay any credit advances

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Observe relevant legislation, codes, regulations and standards

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Approve or decline application in accordance with organisational policy

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Decline credit application

  1. Explain the decision to decline credit application to the customer
  2. Offer and discuss alternative arrangements as necessary
  3. Advise customer of appeal rights where appeal provisions exist
Explain the decision to decline credit application to the customer

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Offer and discuss alternative arrangements as necessary

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Advise customer of appeal rights where appeal provisions exist

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Negotiate credit application details with customer

  1. Negotiate and agree payment arrangements with customer where approval granted
  2. Escalate difficulties experienced in customer negotiations in accordance with enterprise policy
Negotiate and agree payment arrangements with customer where approval granted

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Escalate difficulties experienced in customer negotiations in accordance with enterprise policy

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Complete administrative arrangements

  1. Complete and forward appropriate documentation to customer
  2. Organise credit arrangements and record details in accordance with enterprise policy and legislative requirements
  3. Clearly notify customer of payment arrangements in accordance with enterprise procedures
  4. Regularly monitor and follow-up customer commitments
  5. Resolve any outstanding issues relating to credit application in an efficient and timely manner
Complete and forward appropriate documentation to customer

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Organise credit arrangements and record details in accordance with enterprise policy and legislative requirements

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Clearly notify customer of payment arrangements in accordance with enterprise procedures

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Regularly monitor and follow-up customer commitments

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Resolve any outstanding issues relating to credit application in an efficient and timely manner

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Assessed

Teacher: ___________________________________ Date: _________

Signature: ________________________________________________

Comments:

 

 

 

 

 

 

 

 

Instructions to Assessors

Evidence Guide

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 following is essential:

application of enterprise credit procedures

determination of customer capacity to pay

discussion and explanation to customer of non-approval

negotiation of credit terms and payment arrangements with customers

knowledge of legislative , regulatory and industry code requirements.

Context of and specific resources for assessment

Assessment must ensure:

access to enterprise credit policies and standard operating procedures

access to workplace information and data

access to relevant information on legislation, regulations, codes of practice, hardship programs, 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-the-job 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:

BSBCUS301A Deliver and monitor a service to customers

BSBWOR201A Manage personal stress in the workplace.

Required Skills and Knowledge

Required skills

communication and negotiation skills to effectively and clearly communicate with customers at all levels

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

culturally appropriate communication skills to relate to people from diverse backgrounds and people with diverse abilities

listening and questioning skills to understand and clarify the needs of internal and external customers

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

numeracy skills including budgeting and financial management skills to solve credit issues and problems

problem-solving skills applying a range of strategies

self-management skills to effectively manage personal stress during difficult customer contact.

Required knowledge

conflict resolution and negotiation techniques

credit and debt recovery principles and techniques

financial delegations and limits applied within organisation and specific to role

legislative , regulatory and industry code requirements

organisational credit management policies and procedures

stress management techniques.

Range Statement

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 may include:

call handling processes

escalation process

financial delegation and authorisation limits

hardship policies

internally developed guidelines

referral to specialist group

Relevant legislation, codes, regulations and standards may include:

credit and finance acts and codes

Consumer Credit Code

Do Not Call Register

equal employment opportunity and anti-discrimination legislation

Freedom of Information

hardship policies

industry specific codes, regulations and legislation

occupational health and safety legislation

Privacy Act

Trade Practices Act

Payment arrangements may include:

agreed instalments

cash

cheque

credit card

direct debit

EFTPOS

electronic payment (e.g. Bpay)