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Evidence Guide: BSBCCO305B - 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

 

BSBCCO305B - 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 according to credit management procedures
  4. Establish customer’s credit rating and ability to repay credit advances
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 according to credit management procedures

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Establish customer’s credit rating and ability to repay credit advances

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Process credit application

  1. Approve or decline application according to organisational policy and relevant legislation, codes, regulations and standards
  2. If declining, explain the decision to the customer and discuss alternative arrangements as necessary
  3. Advise customer of appeal rights where appeal provisions exist and apply
Approve or decline application according to organisational policy and relevant legislation, codes, regulations and standards

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

If declining, explain the decision to the customer and discuss alternative arrangements as necessary

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Advise customer of appeal rights where appeal provisions exist and apply

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Negotiate credit application details with customer

  1. Negotiate and agree payment arrangements with customer where credit approval is granted
  2. Escalate difficulties experienced in customer negotiations according to organisational policy
Negotiate and agree payment arrangements with customer where credit approval is granted

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Escalate difficulties experienced in customer negotiations according to organisational policy

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Complete administrative arrangements

  1. Complete and forward appropriate documentation to customer
  2. Organise credit arrangements and record details according to organisational policy and legislative requirements
  3. Notify customer of payment arrangements according to organisational procedures
  4. Regularly monitor and follow up customer commitments
  5. Resolve 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 according to organisational policy and legislative requirements

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Notify customer of payment arrangements according to organisational procedures

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Regularly monitor and follow up customer commitments

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Resolve 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 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.

Required Skills and Knowledge

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.

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 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.