Unit of competency Outline
Date retreived
23/07/2026 1:07 PM AWST
23/07/2026 1:07 PM AWST
Whilst all efforts are made to provide accurate and timely information from the relevant source/documentation, please be aware that the information supplied may not be the most current version. The accuracy of the detail has not been confirmed by the Department and therefore should not be relied upon without first confirming the contents.
Manage factoring and invoice discounting arrangements
Manage factoring and invoice discounting arrangements
Unit of competency
National Code
FNSCRD502A
FNSCRD502A
State Code
D4089
D4089
TGA Status
Replaced
Replaced
DTWD Status
Replaced
Replaced
State Implementation and Classification
Approved Date
29/07/2014
Field of Education
081101 - Banking And Finance
Original Release Date
29/07/2014
Nominal Hours
40
Description
This unit describes the performance outcomes, skills and knowledge required to arrange for the factoring of debts or invoice discounting.This unit has application to a variety of financial services sectors and is applicable to individuals working within enterprises and job roles subject to licensing, legislative, regulatory or certification requirements so the varying Commonwealth, State or Territory requirements should be confirmed with the relevant body.
Notes
Elements and Performance Criteria
1. Advise potential clients on appropriate factoring or invoice discounting arrangements
- 1.1. Different types of arrangements that may be offered to prospective clients are identified
- 1.2. Clients are advised of the different policies and procedures that should be followed in relation to the different types of products
- 1.3. Prospective clients' financial position is assessed from information provided and the and advantages and disadvantages of various debt assignment options and products
- 1.4. Clients are advised on the different types of legal assignment of debt that relate to each type of product
2. Manage the relationship between the debtor and factor or invoice discounter
- 2.1. Information is provided to the debtor as appropriate to the type of product and in accordance with statutory and legislative guidelines
- 2.2. Debt recovery arrangements including all terms and conditions are established with the debtor
3. Manage the relationship between the client and the factor or invoice discounter
- 3.1. Clients are advised clearly and comprehensively how the relationship will proceed
- 3.2. Ongoing monitoring review procedures are established with the client using questioning to confirm full understanding
RANGE STATEMENT
The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.
Policy and procedures may include, but are not limited to:
assistance to customers on billing and collection problems
gathering debt information and its evaluation
legal obligations and framework
making billing adjustments to customer account files
minimising risk
reviewing and adjusting credit limits for established customers
trading terms and credit limits.
Advantages and disadvantages may include, but are not limited to:
cost saving through outsourced administration
immediate cash flow
maintenance of good customer relationships
recovery of costs associated with debt
risk reduction
security
working capital for growth.
Statutory and legislative guidelines may include, but are not limited to:
appropriate sections of the Tax Act
Bankruptcy Act
Bills of Sale and Other Instruments Act
Cheques and Payment Orders Act
Corporations Act
Criminal Act
equal opportunities legislation
Fair Trading Act
Magistrates' Court Act
National Consumer Credit Protection Acts
Partnership Act
Personal Property Security Act
Privacy Act
Small Debts Court Act or equivalent
Trade Practices Act.
Terms and conditions may include, but are not limited to:
agreement components
asset control
cooperation factoring
debtor administration
invoice discounting.
The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.
Policy and procedures may include, but are not limited to:
assistance to customers on billing and collection problems
gathering debt information and its evaluation
legal obligations and framework
making billing adjustments to customer account files
minimising risk
reviewing and adjusting credit limits for established customers
trading terms and credit limits.
Advantages and disadvantages may include, but are not limited to:
cost saving through outsourced administration
immediate cash flow
maintenance of good customer relationships
recovery of costs associated with debt
risk reduction
security
working capital for growth.
Statutory and legislative guidelines may include, but are not limited to:
appropriate sections of the Tax Act
Bankruptcy Act
Bills of Sale and Other Instruments Act
Cheques and Payment Orders Act
Corporations Act
Criminal Act
equal opportunities legislation
Fair Trading Act
Magistrates' Court Act
National Consumer Credit Protection Acts
Partnership Act
Personal Property Security Act
Privacy Act
Small Debts Court Act or equivalent
Trade Practices Act.
Terms and conditions may include, but are not limited to:
agreement components
asset control
cooperation factoring
debtor administration
invoice discounting.
EVIDENCE GUIDE
The Evidence Guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.
Overview of assessment
Critical aspects for assessment and evidence required to demonstrate competency in this unit
Evidence of the ability to:
interpret and comply with relevant legislation
accurately check customer accounts
exhibit appropriate empathy to customers
analyse relevant company data.
Context of and specific resources for assessment
Assessment must ensure:
competency is demonstrated in the context of the financial services work environment and conditions specified in the range statement either in a relevant workplace or a closely simulated work environment
access to and the use of a range of common office equipment, technology, software and consumables
access to organisational policies and procedures for debt factoring and invoice discounting and relevant legislation.
Method of assessment
A range of assessment methods should be used to assess practical skills and knowledge. The following examples, in combination, are appropriate for this unit:
evaluating an integrated activity which combines the elements of competency for the unit or a cluster of related units of competency
verbal or written questioning on underpinning knowledge and skills
setting and reviewing business simulations or scenarios
accessing and validating third party reports.
Guidance information for assessment
The Evidence Guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.
Overview of assessment
Critical aspects for assessment and evidence required to demonstrate competency in this unit
Evidence of the ability to:
interpret and comply with relevant legislation
accurately check customer accounts
exhibit appropriate empathy to customers
analyse relevant company data.
Context of and specific resources for assessment
Assessment must ensure:
competency is demonstrated in the context of the financial services work environment and conditions specified in the range statement either in a relevant workplace or a closely simulated work environment
access to and the use of a range of common office equipment, technology, software and consumables
access to organisational policies and procedures for debt factoring and invoice discounting and relevant legislation.
Method of assessment
A range of assessment methods should be used to assess practical skills and knowledge. The following examples, in combination, are appropriate for this unit:
evaluating an integrated activity which combines the elements of competency for the unit or a cluster of related units of competency
verbal or written questioning on underpinning knowledge and skills
setting and reviewing business simulations or scenarios
accessing and validating third party reports.
Guidance information for assessment
Replaced By
| State Code | National Code | Title | Type |
|---|---|---|---|
| AUQ75 | FNSCRD502 | Manage factoring and invoice discounting arrangements | Unit of competency |
| State Code | National Code | Title | Type |
|---|---|---|---|
| D723 | FNS51511 | Diploma of Credit Management | Qualification |