CCR Credit study plan
CCR Credit · Give each week a clear focus.
8 weeks · About 6 hours per week
Business Credit and Financial Management
Map the five components of a credit policy (target market, credit limits, terms, collection, escalation) and write a one-line definition of each in your own words
Distinguish the roles of credit, sales, and finance in approving a new account, and identify where conflicts of interest arise
Calculate days sales outstanding (DSO) and days payable outstanding (DPO) from a sample balance sheet and income statement you construct yourself
Explain how credit terms (net 30, 2/10 net 30, consignment) change a customer's effective cost of trade credit
Your checkpoint
A one-page credit policy outline with all five components defined and a worked DSO/DPO example showing your arithmetic
Business Credit and Financial Management & Financial Analysis and Risk Assessment
Build a 13-week cash flow forecast template with opening balance, collections, disbursements, and closing balance rows
Compute the cost of carrying receivables using an assumed annual rate and average collection period
Identify three early-warning signals of customer financial distress visible in payment behavior rather than financial statements
Contrast how a credit limit is set for a new customer versus an existing customer requesting an increase
Your checkpoint
A working 13-week cash flow forecast spreadsheet populated with hypothetical numbers and a written note on the carrying-cost calculation
Financial Analysis and Risk Assessment
Read a set of financial statements and compute liquidity, leverage, coverage, and profitability ratios without a formula sheet
Apply Altman-style Z-score logic conceptually to classify a sample company as safe, grey, or distress zone
Analyze cash flow from operations against net income to detect accrual-driven earnings quality problems
Evaluate a trade reference and a bank reference for reliability, bias, and what each can and cannot tell you
Your checkpoint
A two-page credit analysis memo on a fictional company covering ratios, Z-score reasoning, cash flow quality, and a recommended credit limit with justification
Credit Law and Legal Environment
Summarize the key provisions and purpose of the major US credit statutes (Fair Credit Reporting Act, Equal Credit Opportunity Act, Fair Debt Collection Practices Act, Truth in Lending Act) in your own notes
Explain how the bankruptcy code's automatic stay affects collection activity and what a proof of claim is
Distinguish the priority order of claims in a liquidation and where unsecured trade creditors typically fall
Identify when personal guarantees are enforceable and what defenses a guarantor may raise
Your checkpoint
A statute-and-bankruptcy reference sheet (one page) with each law's scope, key obligations, and a practical implication for a credit manager
Credit Law and Legal Environment & Financial Analysis and Risk Assessment
Draft a demand letter and a negotiation script for a delinquent account that stays within legal collection boundaries
Explain the mechanics and risks of mechanic's liens, UCC Article 9 secured filings, and letters of credit as credit risk mitigants
Analyze a customer's deteriorating financials and decide whether to place the account on credit hold, documenting the reasoning
Identify red flags of fraud in credit applications (altered documents, mismatched addresses, shell-company indicators)
Your checkpoint
A collection escalation playbook covering demand letter, negotiation, credit hold, and legal referral, with a worked financial-deterioration case
Credit Management and Leadership
Design a credit department organizational structure and define decision authority thresholds at each level
Set SMART performance metrics for a credit team (DSO, bad debt percentage, percentage current, collection effectiveness index) and explain each formula
Build a coaching plan for an underperforming collector based on observable behaviors rather than personality judgments
Explain how to present a credit risk report to senior leadership in under ten minutes
Your checkpoint
A one-page credit department scorecard with metric definitions, targets, and an escalation matrix by dollar threshold
Credit Management and Leadership & Business Credit and Financial Management
Write a credit policy revision proposal that addresses a specific weakness you identified earlier in the plan
Negotiate a payment plan with a hypothetical customer, documenting concessions and the rationale for each
Assess how automation and credit scoring tools change decision speed and where human judgment must remain
Evaluate ethical dilemmas in credit decisions (consistency, discrimination risk, pressure from sales) and state a defensible position
Your checkpoint
A credit policy revision proposal (one to two pages) with the problem statement, proposed change, expected impact, and implementation steps
Business Credit and Financial Management & Credit Law and Legal Environment & Financial Analysis and Risk Assessment & Credit Management and Leadership
Complete a full-length timed practice exam and record your score by domain
Re-teach your three weakest topics from memory without notes, then check accuracy
Consolidate all prior deliverables into a single indexed study binder
Write a final one-page summary of the ten concepts you are most likely to forget under pressure
Your checkpoint
A scored practice exam with a domain-by-domain error log and a prioritized list of remaining weak areas
Milestones
Week 2: You can compute DSO, DPO, and receivables carrying cost from raw statements in under 15 minutes without reference material
Week 4: You can state the scope and one practical implication of each major credit statute and explain the automatic stay from memory
Week 6: You can define every credit department metric by formula and defend a credit hold decision in writing
Week 8: Practice exam score is at or above your target passing threshold with no domain below 60 percent