BUSINESS ADMINISTRATION
Bachelor’s degree in finance
1.
GENERAL
INFORMATION
COURSE TITLE :CREDIT
AND COLLECTION
COURSE CODIFICATION : FINA
4009 (BASE 2008)
TEXTBOOK :
Consumer Business & Credit Management
Robert Cole & Lon Mishler
Irwin, McGraw-Hill
11th Edition (1998)
CREDIT HOURS : Three (3) credit hours
MEETING HOURS : Three hours a week
PREREQUISITES : FINA 3006
2. COURSE DESCRIPTION : The study of the nature and the
role of credit, the
management of credit, function of
credit, credit
investigation and analysis, control and function of
collection. Its explains the place credit and
collection occupies in modern business and its
effect
on consumerism. The fluctuations of
business, commercial activities
and other effect
over
the economy of the nation in general.
3.COURSE OBJECTIVES
FINAL OBJECTIVES :
1) Acquaint the student with the study of
the
theory, the principles and the practices
of the
administration of credit and collection
2) Guide the student in the critical and
practical
analysis and in understanding the
knowledge
the businessman will need to make
decisions
in
the credit and collection cycle of the
enterprise
3) Offer a clear view of the position that
credit and
collection holds on a business and its
effects
on consumerism, the variation of
business,
commercial activities and other related
activities in the free enterprise system
SPECIFIC OBJECTIVES :
I. Introduction to Credit : At the end of this unit
the students should
be able to:
1) Explain how different types of credit can
be classified
2) Explain the role of credit and its
importance in our economy
3) Describe the goals of the credit manager
4) Explain the steps in the credit
management process
I I. Understanding Consumer Credit: At the end of this unit the student should be
able to:
1) Distinguish between “retail credit” and
“cash credit”
2) Discuss the principles of retail
installment credit
3) Discuss the variations in computing
finance charges in revolving credit plan
4) Explain the growing importance of
service and professional credit
5) Trace the historical development of
consumer credit regulation
6) Point Out the provisions of laws;
A) Truth in Lending Act
B) Fair Credit Reporting Act
C) Fair Credit Billing Act
D) Equal Credit
E) Electronic Fund Transfer Act
F)
Institutions Act
G) Depository Institutions Deregulation and
monetary Control Act
III.
Management
and Analysis of Consumer Credit: At the end of this unit the
Student should be able to:
1) Discuss the importance of developing
control measures in credit management
2) identify the credit qualities that should
be investigated
3) Describe the basic purpose of consumer
credit reporting agencies
4) Describe the use of credit lines and credit
limits
IV.
Management
and Analysis of Business Credit: At the end of this unit the
student should be able to:
1) Explain the basic functions of business
credit management
2) Discuss the origin and development of
Dun & Bradstreet
3) Explain the importance of financial
statement analysis in credit decision
making
4) Explain the importance of cash flow
5) Discuss business credit decision guidelines
V.
Collections
Management and Control: At the end of this unit the students
Should be able to:
1) Describe the goals of a good collection
system
2) Discuss the factor affecting a collection
policy
3) Describe four stages found in a general
collection system
4) Discuss the various types of actions and
collection devices that might be used
during each collection stage
4.CONTENT OUTLINE AND TIME DISTRIBUTION
TOPICS CHAPTER HOURS
1) Introduction to Credit 1 2
A) Credit in the Economy
B) Role of the Credit Manager 2 2
II) Understanding
Consumer Credit
A) Retail and Service
Credit
3 3
B) Financing Retail and
Service Credit Transaction 4 2
C) Types of Consumer
Credit- Cash Loan Credit 5 3
D) Regulations of
Consumer Credit
7 3
III) Management and Analysis
of Consumer Credit
A) Management and Promotion of Consumer
Credit 8 3
B) The Consumer Credit Investigation
9 3
C) Consumer Credit Reporting Agencies 10 3
D) Decision Making and Control
11 3
IV) Management and Analysis
of Business Credit
A) Responsibilities of
the Business Credit Manager 14 3
B) Business Credit
Reporting Agencies
15 3
C) Financial Statement
Analysis and Interpretation 16
3
D) Business Credit-
Analysis, Decision Making, Credit Lines
17 3
V) Collection Management
and Control
A) Collection Policies
and Practices
19 3
VI) Exams
3
TOTAL HOURS 45
5. Evaluation Methods: The evaluation of the students will be realized
by way of:
A) Partials Exams: Three (3) partials exams will
be offered with a value of hundred points, each representative of one fourth
part of the final grade.
B) Final Exam: It will have a value of a hundred
points and will represent one forth part of the final grade.
6) Grade Scale as follows:
100-90 A
89-80 B
79-70 C
69-60 D
59-0 F
7) Bibliography
Commercial Banking
Edward W. Reed
Edward K. Gill
Fourth Edition (1996)
Prentice Hall
Revised by Prof. Carmen L. Torres
February 2001