NZQA registered unit standard
16757 version 6
Page 1 of 4
Title
Determine applicant’s suitability for credit
Level
3
Credits
10
Purpose
This unit standard is for people who are involved or intend to be
involved in the processing of credit applications. People
credited with this unit standard are able to: demonstrate
knowledge of the credit application process; determine the
process of interviewing for credit; check application form for
completeness of credit information supplied; assess applicant’s
creditworthiness; and communicate assessment to the
applicant.
Classification
Financial Management > Credit Administration
Available grade
Achieved
Explanatory notes
1
Legislation applicable to this unit standard includes the Credit Contracts and
Consumer Finance Act 2003, Privacy Act 1993, Credit (Repossession) Act 1997,
Personal Properties Security Act 1999, and their subsequent amendments.
2
Definitions
Applicant means any legal entity including private individuals, commercial entities,
and Māori groups.
Organisational practice includes documented policies, procedures, and practices,
and policy and procedure manuals pertaining to credit.
Terms of trade includes credit limit billing cycles, payment due dates, discounts for
prompt payment, repossession under Romalpa clause, and any trade card
conditions.
Romalpa clause includes any terms of trade statement that refers to retention of title
made and agreed to by both parties before delivery of goods.
Industry practice includes policies, procedures and standards that competent
practitioners in the industry recognise as current industry best practice.
3
This unit standard may be assessed on-job in the workplace using naturally occurring
evidence or in off-job simulated work situations designed to draw upon similar
performance to that required in work in a credit administration and/or credit
management context.
4
All evidence is in accordance with organisational practice where possible, otherwise
evidence may be based on industry practice.
The Skills Organisation
SSB Code 100401
 New Zealand Qualifications Authority 2016
NZQA registered unit standard
16757 version 6
Page 2 of 4
Outcomes and evidence requirements
Outcome 1
Demonstrate knowledge of the credit application process.
Evidence requirements
1.1
Describe the credit application process.
1.2
Describe the elements of a credit application.
Range
correct legal entities, personal guarantee, terms and conditions,
positive identification, addresses, phone numbers;
may include but is not limited to – witness, correct contracting
parties, privacy statement, authorisation, credit referees,
signature, date of birth, acceptance of Personal Properties
Security Registration clause, company registration number, credit
reference.
Outcome 2
Describe the process of interviewing for credit.
Evidence requirements
2.1
Identify and describe situations where an interview is required.
2.2
Explain the purpose and outline of the credit interview.
2.3
Describe an interviewing plan that incorporates specific requirements for an
application.
2.4
Describe methods of eliciting information from the applicant through application
of the interview plan and the use of interviewing techniques.
Range
open-ended questions, closed questions, paraphrasing,
interrogatives, use of name, active listening.
Outcome 3
Check application form for completeness of credit information supplied.
Evidence requirements
3.1
Check details necessary for correct legal identification of the applicant to ensure
that they are completed in accordance with organisational practice.
Range
The Skills Organisation
SSB Code 100401
correct legal entities, terms and conditions, privacy statement,
positive identification, signature, addresses, phone numbers;
may include but is not limited to – personal guarantee, witness,
correct contracting parties, authorisation, credit referees, date of
 New Zealand Qualifications Authority 2016
NZQA registered unit standard
16757 version 6
Page 3 of 4
birth, acceptance of Personal Properties Security Registration
clause, company registration number.
3.2
Obtain financial details of the applicant to determine credit status.
Range
3.3
assets, liabilities, cashflow, income and expenditure, balance
sheet.
Check details of professional advisers, referees, and guarantors to ensure that
they are recorded.
Range
professional advisers may include but is not limited to bankers,
solicitors, auditors.
3.4
Complete a waiver of the requirements of the Privacy Act 1993 for the purposes
of granting credit.
3.5
Ensure application form is signed by the applicant.
Outcome 4
Assess applicant’s creditworthiness.
Evidence requirements
4.1
Obtain and interpret credit rating of the applicant.
Range
may include but is not limited to – Personal Properties Security
Register search, credit bureau check, supplier group, trade
references, industry references.
4.2
Determine credit classification of applicant, credit limit, and terms of trade.
4.3
Record applicant’s credit details.
Outcome 5
Communicate assessment to the applicant.
Evidence requirements
5.1
Communicate outcome of credit application to the applicant.
5.2
Define terms of trade for the successful applicant, and advise any guarantors.
Range
The Skills Organisation
SSB Code 100401
billing cycle, payment due date, available methods of payment,
terms and conditions;
may include but is not limited to – repossessions under Romalpa
clause, transaction card conditions, Personal Properties Security
Register.
 New Zealand Qualifications Authority 2016
NZQA registered unit standard
Planned review date
16757 version 6
Page 4 of 4
31 December 2020
Status information and last date for assessment for superseded versions
Process
Version Date
Last Date for Assessment
Registration
1
27 September 1999
31 December 2013
Revision
2
22 October 2002
31 December 2013
Review
3
28 June 2005
N/A
Rollover and
Revision
4
15 November 2012
N/A
Rollover and
Revision
5
22 May 2014
N/A
Review
6
18 June 2015
N/A
Consent and Moderation Requirements (CMR) reference
0121
This CMR can be accessed at http://www.nzqa.govt.nz/framework/search/index.do.
Please note
Providers must be granted consent to assess against standards (accredited) by NZQA,
before they can report credits from assessment against unit standards, or deliver courses
of study leading to that assessment.
Industry Training Organisations must be granted consent to assess against standards by
NZQA before they can register credits from assessment against unit standards.
Providers and Industry Training Organisations, which have been granted consent and
which are assessing against unit standards must engage with the moderation system that
applies to those standards.
Requirements for consent to assess and an outline of the moderation system that applies
to this standard are outlined in the (CMR). The CMR also includes useful information
about special requirements for organisations wishing to develop education and training
programmes, such as minimum qualifications for tutors and assessors, and special
resource requirements.
Comments on this unit standard
Please contact The Skills Organisation reviewcomments@skills.org.nz if you wish to
suggest changes to the content of this unit standard.
The Skills Organisation
SSB Code 100401
 New Zealand Qualifications Authority 2016