Business Credit Principles

A comprehensive course for Credit Analysts and Potential CBA Applicants

About the Program
This intensive program offers a comprehensive look at the credit function. Upon successful completion, you should understand the role of credit in financial management, the components of effective credit department systems and procedures, specific government regulations that pertain to business credit, credit and policy procedures, selling terms, negotiable instruments, the Uniform Commercial Code, credit investigations, financing and insurance, business credit fraud, factors associated with credit limits, out-of-court settlements, and bankruptcy.

Program Instructor
James A. McIntyre, CCE is President of McIntyre Enterprises, LTD., a firm specializing in financial education, training programs and credit consulting. Mr. McIntyre formally taught Fundamentals of Credit and Advanced Credit Analysis at North Hennepin Community College and is a member of NHCC Business School Accreditation and Advisory Committee. In addition, Mr. McIntyre currently teaches the NACM Credit Administration Program for Forius, formerly known as NACM North Central. He served as Chairman of the Board of the National Association of Credit Management from May 1996 through May 1997. Mr. McIntyre was awarded the Alice M. McGregor Award of Exceptional Achievement from NACM at the 1999 Credit Congress, and was the 2000 NACM and Robert Half/Accountemps Co-Instructor of the Year.

Program Overview
This program satisfies a requirement for the Credit Business Associate (CBA) designation. Using the textbook, Principles of Business Credit, Field Version 5, published by NACM, participants will receive in depth exposure to:

Credit in the Business World
Credit in the Company
Organizing the Credit Department
The Legal Environment of Credit
Credit Policy and Procedures
Terms and Conditions of Sale
Negotiable Instruments
The Legal Forms of Business
The Uniform Commercial Code
Credit Investigations
Know Your Customer
International Trade
Financing and Business Insurance
Business Credit Fraud
Making Credit Decisions
Customer Visits
The Credit and Sales Partnership
Out of Court Settlements
Bankruptcy Code Proceedings
Financial Statements
Financial Analysis Fundamentals
Analysis and Forecasting of Credit and Receivable Information

Program Prerequisites
There are no prerequisites for this course though a basic knowledge of accounting principles is helpful.

Program Schedule

Day One - Sunday
5:00 - 7:00pm
Welcome Dinner

Day Two - Monday
8:00 - 8:30am
Continental Breakfast

8:30am – Noon
I. Financial Overview

Credit in the Business World
• Discussion of the role of commercial credit in
today’s society for the financing of goods and
services.
• Discussion of the role of the Federal Reserve in
expansion and contraction of the flow of funds.
• Legal aspects of the Consumer Protection Act and
its effect on Consumer and Commercial Credit.
• Anti-Trust legislation.

Noon - 1:00pm
Lunch

1:00 - 5:00pm

Credit Policy
• Defining credit policy in relationship to company
goals and objectives.
• Discussion of factors affecting credit policy.
• Establishment of company credit policy and procedures.
• Implementation of credit policy throughout the company.

Understanding Negotiable Instruments
• Elements of negotiable instruments.
• Understanding use of notes and drafts.
• Legal implications of a negotiable instrument.

5:30pm
Dinner at a Local Restaurant

All dinners are held at local restaurants. A variety of dinner choices are always available.

Day Three - Tuesday
8:00 - 8:30am
Continental Breakfast

8:30am – Noon
II. The Credit Decision-Development

Decision Procedures
• What is a marginal account?
• Factors affecting the development of terms of sale.
• Understanding the three areas of terms.
• Uniform Commercial Code and its effect on terms of sale.
• Benefits of proper terms of sale on company.
• Use of guarantees and letters of credit.
• What is a bank line of credit, factoring, ordinary accounts
receivable financing?

Noon - 1:00pm
Lunch

1:00 – 2:15pm

Legal Forms of Business
• Thorough study of legal forms of business structures-benefits
and disadvantages of each.
• How should the credit grantor react to each form of business
entity when establishing credit availability amounts?

2:15 – 5:00pm
Comprehensive Review and Exam
This review and exam will cover the material presented in class on Tuesday and Wednesday.

5:30pm
Dinner at a Local Restaurant

Day Four - Wednesday
8:00 - 8:30am
Continental Breakfast

8:30 – 5:00pm
III. The Credit Decision - Investigation

• Understanding 5 Cs of credit.
• Rethinking the credit application.
• Direct credit investigation.
• Indirect credit investigation.

IV. The Credit Decision - Financial Statements: Understanding
Fundamentals of Financial Analysis

• Auditor’s opinion statements.
• What is a balance sheet?
• What is an income statement?
• What is a statement of cash flows?
• Understanding financial ratios.
• Case Analysis-Utilizing all of the credit decision tools.
• Establishing the credit availability amount.

Noon - 1:00pm
Lunch

5:00pm
Dinner at a Local Restaurant

Day Five - Thursday
8:00 - 8:30am
Continental Breakfast

8:30am - Noon
IV. The Credit Decision - Financial Statements: Understanding Fundamentals of Financial Analysis – continued

Noon - 1:00pm
Lunch

1:00 – 5:00pm
V. Collection Procedures

Defining Collections
• Reviewing on-going accounts.
• What is collection procedure? When does it begin?
• Collection policy.
• Use of invoice and statements in the collection process.
• How to deal with an overdue account at various stages
of delinquency.
• Dealing with out-of-court settlements.
• Is it a bad debt?

Bankruptcy Code Proceeding
• What is a Chapter 13 Bankruptcy?
• What is a Chapter 11 Bankruptcy?
• What is a Chapter 7 Bankruptcy?
• How do we react to each?

Management Reports
• What reports are key and important?
• Who reads the reports?
• Understanding and interpreting reports to management.
• Are they necessary?

5:00pm
Study Session and Pizza Party


Day Six - Friday
8:00 – 8:30am
Continental Breakfast

8:30am
Comprehensive Review and Final Exam

In order to give you sufficient time to take the final exam, we strongly recommend that your return flight be scheduled to depart after 5:00pm on the final day of the program or the following morning.