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Unit of competency details

BSBCUE305 - Process credit applications (Release 1)

Summary

Usage recommendation:
Superseded
Mapping:
MappingNotesDate
Supersedes and is equivalent to BSBCCO305B - Process credit applicationsUpdated to meet Standards for Training Packages Code changed to reflect industry practice 24/Mar/2015
Is superseded by BSBFIN301 - Process financial transactions 18/Oct/2020

Releases:
ReleaseRelease date
1 1 (this release) 25/Mar/2015


Classifications

SchemeCodeClassification value
ASCED Module/Unit of Competency Field of Education Identifier 081101 Banking And Finance  

Classification history

SchemeCodeClassification valueStart dateEnd date
ASCED Module/Unit of Competency Field of Education Identifier 081101 Banking And Finance  30/Jul/2015 
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Unit Of competency

Modification History

Release 

Comments 

Release 1

This version first released with BSB Business Services Training Package Version 1.0.

Application

This unit describes the skills and knowledge required to handle credit applications or arrangements for customers with no credit rating or a poor credit rating, and negotiation of various outcomes with customers.

It applies to individuals who apply a broad range of competencies in a varied work context, using some discretion and judgement and relevant theoretical knowledge, and who may provide technical advice and support to a team.

No licensing, legislative or certification requirements apply to this unit at the time of publication.

Unit Sector

Stakeholder Relations – Customer Engagement

Elements and Performance Criteria

ELEMENT 

PERFORMANCE CRITERIA 

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1 Review and evaluate credit application

1.1 Review application to determine customer details and amount of credit required

1.2 Check existing customer records for payment history and credit standing

1.3 Obtain customer credit rating according to credit management procedures

1.4 Establish customer’s credit rating and ability to repay credit advances

2 Process credit application

2.1 Approve or decline application according to organisational policy and relevant legislation, codes, regulations and standards

2.2 If declining, explain decision to the customer and discuss alternative arrangements as necessary

2.3 Advise customer of appeal rights where appeal provisions exist and apply

3 Negotiate credit application details

3.1 Negotiate and agree payment arrangements with customer where credit approval is granted

3.2 Escalate difficulties experienced in customer negotiations according to organisational policy

4 Complete administrative arrangements

4.1 Complete and forward appropriate documentation to customer

4.2 Organise credit arrangements and record details according to organisational policy and legislative requirements

4.3 Notify customer of payment arrangements according to organisational procedures

4.4 Regularly monitor and follow up customer commitments

4.5 Resolve outstanding issues relating to credit application in an efficient and timely manner

Foundation Skills

This section describes language, literacy, numeracy and employment skills incorporated in the performance criteria that are required for competent performance.

Skill 

Performance 

Criteria 

Description 

Reading

1.1-1.3

  • Recognises and interprets textual information from relevant sources to determine customer requirements and position

Writing

2.1, 4.1-4.3

  • Prepares specific information using different formats which conveys an understanding of outcomes and alternatives and uses terminology appropriate to intended audience

Oral Communication

2.1-2.3, 3.1, 4.4

  • Articulates clearly using specific and relevant language suitable to audience to convey requirements, and listening and questioning to confirm understanding

Numeracy

1.1, 1.2, 1.4, 2.1, 3.1, 4.2

  • Interprets numerical information and applies basic mathematical calculations relating to current and future financial scenarios
  • Extracts, evaluates and compares numerical information

Navigate the world of work

1.3, 2.1, 3.2, 4.2, 4.3

  • Appreciates implications of legislative and organisational requirements related to assessment and administration of credit applications

Interact with others

3.1, 3.2

  • Selects and uses appropriate conventions and protocols in negotiations with customers

Get the work done

1.4, 4.1-4.5,

  • Plans and implements credit application tasks, accepting stated goals and aiming to achieve them efficiently
  • Uses formal decision-making processes to establish credit rating and customer capacity to meet obligations
  • Monitors customer payments to identify and resolve familiar problems promptly
  • Uses familiar digital systems and tools to access, organise, analyse and display information relevant to credit administration

Unit Mapping Information

Code and title  

current version 

Code and title 

previous version 

Comments 

Equivalence status 

BSBCUE305 Process credit applications

BSBCCO305B Process credit applications

Updated to meet Standards for Training Packages

Code changed to reflect industry practice

Equivalent unit

Links

Companion Volume implementation guides are found in VETNet - https://vetnet.gov.au/Pages/TrainingDocs.aspx?q=11ef6853-ceed-4ba7-9d87-4da407e23c10

 

Assessment requirements

Modification History

Release 

Comments 

Release 1

This version first released with BSB Business Services Training Package Version 1.0.

Performance Evidence

Evidence of the ability to:

  • apply organisational credit procedures to determine customer capacity to pay
  • discuss and explain non-approval to customers
  • negotiate credit terms and payment arrangements with customers.

Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.

Knowledge Evidence

To complete the unit requirements safely and effectively, the individual must:

  • outline credit and debt-recovery principles and techniques
  • identify financial delegations and limits applied, within organisation and specific to role
  • identify legislative, regulatory and industry code requirements for credit approval processes
  • identify organisational credit management policies and procedures.

Assessment Conditions

Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the stakeholder relations – customer engagement field of work and include access to:

  • organisational credit management policies and standard operating procedures
  • relevant information on legislation, regulations, standards codes of practice
  • workplace information and data.

Assessors must satisfy NVR/AQTF assessor requirements.

Links

Companion Volume implementation guides are found in VETNet - https://vetnet.gov.au/Pages/TrainingDocs.aspx?q=11ef6853-ceed-4ba7-9d87-4da407e23c10