SAQA All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.
SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD: 

Establish the collectable value of a business` debtor`s book 
SAQA US ID UNIT STANDARD TITLE
12738  Establish the collectable value of a business` debtor`s book 
ORIGINATOR
SGB Banking and Micro Finance 
PRIMARY OR DELEGATED QUALITY ASSURANCE FUNCTIONARY
BANKSETA - Banking Sector Education and Training Authority 
FIELD SUBFIELD
Field 03 - Business, Commerce and Management Studies Finance, Economics and Accounting 
ABET BAND UNIT STANDARD TYPE PRE-2009 NQF LEVEL NQF LEVEL CREDITS
Undefined  Regular  Level 4  NQF Level 04  15 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Reregistered  2018-07-01  2023-06-30  SAQA 06120/18 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2024-06-30   2027-06-30  

In all of the tables in this document, both the pre-2009 NQF Level and the NQF Level is shown. In the text (purpose statements, qualification rules, etc), any references to NQF Levels are to the pre-2009 levels unless specifically stated otherwise.  

This unit standard does not replace any other unit standard and is not replaced by any other unit standard. 

PURPOSE OF THE UNIT STANDARD 
This unit standard is intended for individuals who are responsible for evaluating the value of a business`s debtor`s book.

Persons credited with this unit standard will be able to explain the nature of debtor asset value, review the debtors book, evaluate risk associated with individual debtors and assign a factoring value to the debtor`s book. 

LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
Open. 

Specific Outcomes and Assessment Criteria: 

SPECIFIC OUTCOME 1 
Explain the nature of debtor asset value. 

ASSESSMENT CRITERIA
 

ASSESSMENT CRITERION 1 
1.The nature of debtors as an asset is understood and explained according to generally accepted financial principles and in line with the factoring house's specific procedures. 

ASSESSMENT CRITERION 2 
2.The business factors affecting the value of the business' debtors are understood and explained according to general financial principles and in line with the factoring house's specific procedures. 

ASSESSMENT CRITERION 3 
3.The risks affecting the value of the business' debtor's are understood and explained according to general financial principles and in line with the factoring house's specific procedures. 

ASSESSMENT CRITERION 4 
4.The specific accounting practices involved in recording the value of debtors are understood and explained according to general financial principles and in line with the factoring house's specific procedures. 

ASSESSMENT CRITERION 5 
5.The process, asset requirements and risks of providing finance through factoring is understood and explained according to the factoring house's specific procedures. 

SPECIFIC OUTCOME 2 
Analyse the debtors book. 

ASSESSMENT CRITERIA
 

ASSESSMENT CRITERION 1 
1.The previous months debtor age analysis is obtained according to company policy and procedure. 

ASSESSMENT CRITERION 2 
2.The movement of debtors month to month is evaluated to establish the quality of the debtor's book according to company policy and procedure. 

ASSESSMENT CRITERION 3 
3.The spread of risk across the debtors is evaluated to establish the quality of the debtor's book according to company policy and procedure. 

ASSESSMENT CRITERION 4 
4.Debts to be excluded from the valuation are identified according to company specific policy and procedure. 
ASSESSMENT CRITERION RANGE 
Associated company accounts, inter-company accounts, contra's, cash accounts. Evidence of competence across the entire range is required.
 

ASSESSMENT CRITERION 5 
5.Un-collectable (un-factorable) debts are identified according to company policy and procedure. 
ASSESSMENT CRITERION RANGE 
Cash accounts, liquidations, long overdue accounts, accounts handed over for collection. Evidence of competence across the entire range is required.
 

ASSESSMENT CRITERION 6 
6.Debtors to be excluded from factoring are eliminated and a revised debtors total is calculated. 

SPECIFIC OUTCOME 3 
Evaluate risk associated with individual debtors. 

ASSESSMENT CRITERIA
 

ASSESSMENT CRITERION 1 
1.A representative sample of debtors to be rated is selected to give an indication of the value of the debtor's book according to company specific criteria. 

ASSESSMENT CRITERION 2 
2.The debtor's details are verified according to the lenders factoring policy and procedure. 

ASSESSMENT CRITERION 3 
3.The debtor's payments history is evaluated according to the lenders factoring policy and procedure. 

ASSESSMENT CRITERION 4 
4.The creditworthiness of debtor's is established according to the lenders factoring policy and procedure. 
ASSESSMENT CRITERION RANGE 
Obtain bank reports on the debtor's accounts, check Kredit Inform, other creditworthiness firms/ reports. Evidence of competence on any one of the range is required.
 

ASSESSMENT CRITERION 5 
5.The collectable value of the debt is established according to generally accepted financial principles and in line with the lenders factoring policy and procedure. 

SPECIFIC OUTCOME 4 
Assign a factoring value to the debtors book 

ASSESSMENT CRITERIA
 

ASSESSMENT CRITERION 1 
1.The net value of the book is accurately calculated, after deductions and exclusions according to the lenders factoring policy and procedure. 

ASSESSMENT CRITERION 2 
2.An overall factoring limit based on the revised value of the book and the associated business risks is recommended in line with the lenders credit policy and procedure. 

ASSESSMENT CRITERION 3 
3.The assessor's views/ comments regarding risk associated with the debtor's book are recorded according to the analysis of the book and the business's financial statements in line with the lenders factoring policy and procedure. 

ASSESSMENT CRITERION 4 
4.The assessor's views regarding the value of the debtor's book are recorded according to the analysis of the book and the business's financial statements in line with the lenders factoring policy and procedure. 

ASSESSMENT CRITERION 5 
5.Records of the assessor's analysis are maintained as required by the lenders factoring policy and procedure. 

ASSESSMENT CRITERION 6 
6.Supporting documentation to justify findings is maintained as required by the company's policy and procedure. 


UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
1.Anyone assessing a learner against this unit standard must be registered as an assessor with the relevant ETQA.
2.Any institution offering learning that will enable achievement of this unit standard or assessing this unit standard must be accredited as a provider with the relevant ETQA.
3.Moderation of assessment will be overseen by the relevant ETQA according to the moderation guidelines in the relevant qualification and the agreed ETQA procedures.

Therefore, anyone wishing to be assessed against this unit standard may apply to be assessed by any assessment agency, assessor or provider institution that is accredited by the relevant ETQA. 

UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE 
  • General knowledge of the factoring industry
  • Knowledge of the company`s range of products and services, and the associated rules and regulations relating to factoring.
  • Operating and computer systems knowledge sufficient to locate the necessary information and complete the task/function
  • General understanding of the specific risks and relevant policies relating to factoring. 


  • Critical Cross-field Outcomes (CCFO): 

    UNIT STANDARD CCFO COLLECTING 
  • To communicate effectively both verbally and in writing when the assessor`s views regarding the risk and the associated value of the debtors book are recorded. 

  • UNIT STANDARD CCFO COMMUNICATING 
  • To communicate effectively both verbally and in writing when the assessor`s views regarding the risk and the associated value of the debtors book are recorded. 

  • UNIT STANDARD CCFO DEMONSTRATING 
  • To demonstrate an understanding of the world as a set of related systems when the risks affecting the value of a business`s debtors are understood and explained. 

  • REREGISTRATION HISTORY 
    As per the SAQA Board decision/s at that time, this unit standard was Reregistered in 2012; 2015. 

    UNIT STANDARD NOTES 
    Legal Requirements

    All procedures must meet recognised codes of practice as well as obligations required by current legislation within South Africa and within the normal parameters of the defined job/task.

    Terminology

    Debtor`s age analysis - a report reflecting the length of time debts have been outstanding (expressed in the following terms current i.e. within 30 days of invoice; 30 days after invoice; 60 days after invoice; 90 days after invoice; 120 days after invoice and 120 plus). 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Elective  20185   Further Education and Training Certificate: Banking  Level 4  NQF Level 04  Reregistered  2023-06-30  BANKSETA 


    PROVIDERS CURRENTLY ACCREDITED TO OFFER THIS UNIT STANDARD: 
    This information shows the current accreditations (i.e. those not past their accreditation end dates), and is the most complete record available to SAQA as of today. Some Primary or Delegated Quality Assurance Functionaries have a lag in their recording systems for provider accreditation, in turn leading to a lag in notifying SAQA of all the providers that they have accredited to offer qualifications and unit standards, as well as any extensions to accreditation end dates. The relevant Primary or Delegated Quality Assurance Functionary should be notified if a record appears to be missing from here.
     
    1. Absa Learning & Development 
    2. Bidvest Bank 
    3. Chartall Business College 
    4. Cornerstone Performance Solutions (Pty) Ltd 
    5. Felix Risk Training Consultants 
    6. Firstrand Bank - Benmore 
    7. Nedbank Ltd 
    8. The Facilitation Workshop 



    All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.