Strategies on debt recoveries and problem credit management

Credit is the extension of fund to a borrower which he/she pays interest rate for using the money. In finance the term ‘recovery’ refers to collection of amount due. Normally the recovery depends on the purpose, time and business running process, etc. Recovery is different from one credit to another. 

In a local context, Sri Lanka is to grow by 5% in 2018, said Central Bank Governor Indrajit Coomarasway, driven by an expected credit growth of 15%. This in turn creates certain vulnerabilities of money extended as credits that may not be paid back, hence affecting the financial sector. The country has seen a decline in the gross NPL ratio to 2.5% as at end 2017, from 2.6% as at end 2016, despite an increase in NPLs of Rs. 18.3 billion during 2017.

Today in the world of business, credit has become a crucial aspect. 

For a growth oriented company doing business on credit gives it better leverage to be more dynamic in its operations, this enhances the bottom line for the business. Therefore credit has become a pivotal aspect for any business whether it is the lending of money by financial institutions, giving credit by trading or manufacturing institutions and even by a service provider in any field. Hence the urgency for any business is giving credit for the goods or services and ensuring that the amounts are duly recovered from the customers. 

A prominent aspect of banking in general and lending in particular is the ability of a lending officer to assure lending out funds could be tracked down and recovered. The problem of credit default is to be brought to concern by any organisation and, one that has cost many financial institutions fortunes in bad debts. Because of information asymmetry on a company’s credit default funds that may never be recovered might be lent out by credit officers. 

This program will ensure that the participant will be able to derive the highest precautionary measures when it comes to credit being given, by using a “professional credit management process”. In addition the participant would know how recoveries could be done with different strategies and options such as negotiation based on the nature of the customer and his ability to pay the obligation of credit. Also legal measures such Arbitration and Litigation would be touched upon.

In addition, methods in estimating credit losses such as the application of discounted cash flow methods and other such estimation methods would be talked about in this program. The program was conducted by the key speaker Gamini Karunathilake, who was the former CEO of Merchant Bank of Sri Lanka and Finance PLC (MBSL) with his upcoming book on ‘Law and Practice of Bank Securities and Recoveries’. Karunathilake would part his archive of knowledge on debt recovery with over 25 years in the field and his valuable experiences which you as a participant could learn from. 

Following the talk would be a dynamic panel discussion with Karunathilake, A.M.A. Cader and Priyantha Herath where the participants can ask their burning questions on the field and would be given an array of answers from the panellists that have their own backgrounds and experiences. Priyantha Herath is the Managing Director of PNB Holdings BPO Solutions, Former deputy general manager of finance and planning of MBSL and A.M.A. Cader is currently a business advisor, ADB Consultant and Former deputy general manager of advisory and capital markets and fund management of MBSL.

An investment in this evening seminar is going to be of immense benefit to the individual, or the institution represented by the participant. There is an early bird offer of one free for every five sold in order enable institution for building a competent team on this topic of debt recovery. To register for this program or to get more detail on it, the participants can get in touch by calling the numbers 0755349239 (Ayyub Cader) or 0773047769 (A.M.A. Cader).