What Experience Will I Need?

The role of a credit manager is generally awarded to those who have gained vast industry expertise by working in lower-level roles of progressive responsibility, and demonstrated competence and dedication along the way. For example, many credit managers have previously worked as a loan officer, accountant, securities sales agent, or credit analyst.

What is a Credit Manager?

Credit managers are responsible for overseeing their firm’s credit business. Typically, they aim to sell as much credit to customers as possible in order to bring in revenue for their employer. However, in order to mitigate risk, they must carefully set credit-rating criteria, determine credit ceilings, and monitor the collections of past-due accounts. 

Credit managers can either work in commercial credit, which involves dealing with business customers, or they work in consumer credit, which involves dealing with private customers.

What Does a Credit Manager Do?

Although their duties can vary, credit managers are generally responsible for the following:

• Assisting executive management in determining credit policies, procedures and standards

• Recruiting, hiring, training, supervising and supporting employees

• Managing a team of credit controllers, credit analysts or accounting technicians

• Achieving sales and revenue targets

• Resolving customer complaints

• Determining and communicating repayment schedules

• Checking customer credit ratings with banks and credit reference agencies

• Deciding whether to offer credit

• Setting up terms of credit and making sure the customer pays on time

• Negotiating repayment plans

• Supervising the collection of past-due accounts

• Stopping supplies of goods to late-paying business customers

• Starting legal action to recover debts if necessary

• Liaising with other creditors, arranging for goods to be recovered by bailiffs or dealing with liquidators if a company's assets are to be sold off

What Would the Work Environment Be Like?

Credit managers usually work in an office environment and may work long hours, which might include working during evenings or weekends on occasion. They are constantly dealing with people, including top executives and staff members in departments that develop the data they need. 

Credit managers, specifically in the commercial sector, may have to travel on occasion to visit firms or plants in order to interview prospective borrowers and assess their business operations. 

Their job can be stressful when facing pressure to meet revenue targets, or when dealing with unmotivated staff. Their job can be highly rewarding however, when they meet targets, or when they learn their work has stimulated a business, or helped a family.