Debt Recovery Strategies and Management

1. Training Introduction

Effective debt recovery is essential for maintaining organizational liquidity, sustainability, and financial stability. Rising levels of non-performing debts, delayed payments, and weak credit control systems pose significant risks to businesses, financial institutions, and public sector organizations. A structured and ethical approach to debt recovery is therefore critical.

This training programme is designed to equip participants with practical skills, legal awareness, negotiation techniques, and management strategies required to recover debts efficiently while maintaining professional relationships and regulatory compliance. The programme emphasizes modern, ethical, and results-oriented debt recovery practices.

 

2. Training Objectives

By the end of this training, participants will be able to:

• Understand the fundamentals of debt recovery and credit management
• Develop and implement effective debt recovery strategies
• Apply legal and regulatory frameworks governing debt recovery
• Improve negotiation, communication, and conflict resolution skills
• Manage delinquent accounts and reduce non-performing debts
• Implement ethical and professional debt recovery practices
• Monitor, evaluate, and improve debt recovery performance

 

3. Targeted Group

This training is designed for:

• Credit Controllers and Debt Recovery Officers
• Finance and Accounts Officers
• Bankers and Financial Institution Staff
• Microfinance and SACCO Personnel
• Legal Officers and Compliance Staff
• Revenue Officers and Public Sector Finance Staff
• Business Owners and Entrepreneurs
• Customer Service and Relationship Managers

 

4. Course Duration

• Total Duration: 8 Days / 32–40 Hours
• Module Structure: 8 comprehensive modules with practical exercises and case studies

 

5. Training Methodology

The programme adopts a practical and interactive approach, including:

• Facilitator-led presentations and discussions
• Real-life case studies and scenarios
• Role plays and negotiation simulations
• Group work and problem-solving sessions
• Practical tools, templates, and checklists
• Knowledge assessments and action planning

 

6. Course Content

Module 1: Introduction to Debt Recovery and Credit Management

• Overview of debt recovery concepts
• Causes and impacts of bad and delinquent debts
• Credit life cycle and debt recovery process
• Roles and responsibilities in debt management

 

Module 2: Credit Risk Assessment and Prevention Strategies

• Customer credit assessment techniques
• Credit scoring and risk profiling
• Setting credit policies and limits
• Preventive measures to minimize bad debts

 

Module 3: Debt Recovery Planning and Strategy Development

• Developing a debt recovery framework
• Segmentation of debtors
• Prioritization of recovery actions
• Key performance indicators (KPIs) in debt recovery

 

Module 4: Communication and Negotiation Skills for Debt Recovery

• Effective communication with debtors
• Negotiation techniques and persuasion skills
• Handling difficult debtors and objections
• Maintaining professionalism and relationships

 

Module 5: Legal and Regulatory Framework for Debt Recovery

• Overview of debt recovery laws and regulations
• Rights and obligations of creditors and debtors
• Documentation and evidence management
• Legal recovery processes and alternatives

 

Module 6: Debt Collection Tools, Techniques, and Technologies

• Manual and automated debt collection methods
• Use of management information systems
• Debt tracking, reporting, and analytics
• Digital tools and best practices

 

Module 7: Ethical Debt Recovery and Customer Relationship Management

• Ethical standards and codes of conduct
• Managing reputational risk
• Fair treatment of debtors
• Balancing recovery objectives with customer retention

 

Module 8: Monitoring, Reporting, and Performance Improvement

• Measuring debt recovery performance
• Reporting structures and dashboards
• Continuous improvement strategies
• Case studies and practical recovery action plan

 

7. Expected Outcomes

Upon successful completion of the programme, participants will:

• Apply structured and effective debt recovery strategies
• Reduce non-performing and overdue debts
• Improve cash flow and organizational liquidity
• Strengthen negotiation and conflict management skills
• Ensure legal compliance and ethical conduct
• Enhance professional competence in debt recovery management

 

8. Certificate of Completion

Participants who successfully complete the training and assessments will receive a:

Certificate of Completion in Debt Recovery Strategies and Management

Issued by:

FOTADE Training, Research and Resource Development Centre

The certificate confirms that the participant has acquired the knowledge and practical skills necessary to manage and implement effective, ethical and compliant debt recovery processes