Credit Manager Job Description
A Credit Manager is responsible for overseeing the credit granting process within a company or financial institution. They assess creditworthiness of potential customers, monitor existing clients, ensure timely collection of revenues, and minimize bad debt losses.
Here’s a general job description for a Credit Manager:
- Evaluate the creditworthiness of potential customers, creating credit scoring models for risk assessment.
- Set the terms and conditions of credit for new customers and negotiate payment plans.
- Review and update the company’s credit policy regularly.
- Monitor the credit granting and updating process, accepting or rejecting new clients based on credibility and potential revenues from the client.
- Monitor and handle overdue payments or bad debts, negotiating with clients in arrears, implementing repayment schedules and actions.
- Manage relationships with clients to ensure timely debt repayments.
- Prepare reports detailing the credit status of customers for management.
- Coordinate with sales and customer service departments to set credit terms and structures.
- Stay updated on legal and regulatory changes relating to credit management.
- Bachelor’s degree in Finance, Economics, Business Administration, or a related field. An advanced degree or credit certification (like a Certified Credit Professional (CCP) designation) can be advantageous.
- Several years of experience in credit management, finance, or a similar role.
- Strong analytical skills and ability to make informed decisions.
- Excellent negotiation and communication skills.
- Proficiency in credit analysis software and databases.
- In-depth knowledge of industry’s legislation, rules and regulations.
This is a general description and the specific duties and requirements may vary depending on the industry and the company’s size and needs.
Example of a Credit Manager Job Description
Let’s consider a hypothetical example of a Credit Manager role at a manufacturing company:
Company: XYZ Manufacturing Inc.
Position: Credit Manager
- Evaluate credit applications and assess clients’ creditworthiness using credit scoring models.
- Set credit terms, conditions, and limits for new customers in line with our company’s credit policies.
- Monitor customers’ accounts to identify any changes affecting their credit status.
- Regularly review and update the company’s credit policy.
- Coordinate with the sales department to establish credit terms for new customers and manage existing client relationships.
- Manage the collection process for overdue accounts, including negotiating with customers in arrears and implementing repayment schedules.
- Prepare detailed reports on credit activity, including updates on potential bad debts, for senior management.
- Work closely with the accounting department to reconcile accounts receivable and ensure accuracy of invoicing data.
- Stay up-to-date with industry trends, changes in business practices in the assigned portfolio, and changing legislation pertaining to credit management.
- Bachelor’s degree in Finance, Business Administration, or a related field.
- Minimum of 5 years of experience in credit management or a related role in a manufacturing or industrial company.
- Proven experience in negotiation and relationship management.
- Strong understanding of financial statements and accounting principles.
- Excellent analytical and decision-making abilities.
- Proficiency in credit analysis software and Microsoft Office Suite.
- Familiarity with relevant legal requirements and best practices in credit management.
In this role, the Credit Manager will play a crucial role in maintaining the financial health of XYZ Manufacturing Inc. by managing the credit offered to its customers and minimizing bad debt losses.