Credit manager job description

A credit manager is responsible for the entire credit granting process. This includes the consistent application of a credit policy, periodic credit reviews of existing customers, and assessing the creditworthiness of potential customers. The credit manager’s goal is to optimize the mix of company sales and bad debt losses.

Principal Accountabilities - Management

  1. Maintain a department organizational structure sufficient to meet all goals and objectives

  2. Properly motivate the credit and collections staff

  3. Measure department performance with appropriate metrics

  4. Provide for ongoing training of the credit staff

  5. Manage relations with collection agencies

  6. Manage relations with credit reporting agencies

  7. Manage relations with credit insurance providers

  8. Manage relations with the sales department

Related AccountingTools Courses

Credit and Collection Guidebook

Essentials of Collection Law

The Interpretation of Financial Statements

Principal Accountabilities - Credit Operations

  1. Maintain the credit policy. This policy may require revisions whenever economic conditions change, or when the financial situation of the company mandates a policy adjustments.

  2. Recommend credit policy changes. The credit manager will present proposed credit policy changes to the chief financial officer and/or treasurer, which includes a financial analysis of the likely outcomes of these changes.

  3. Update the credit scoring model. The credit manager will review the cost-effectiveness of the existing credit scoring model, and use benchmarking and other other analyses to determine whether it can be improved. The credit manager is responsible for all changes made.

  4. Manage customer credit files

  5. Monitor the credit granting and updating process

  6. Accept or reject the staff's credit recommendations

  7. Personally investigate the largest customer credit applications

  8. Personally visit the largest customers to establish relations

  9. Monitor periodic credit reviews

  10. Monitor deductions being taken by customers

  11. Manage the application of late fees

  12. Manage the corporate financing program

Desired Qualifications

5+ years of credit experience. Bachelor's degree in business and experience with credit scoring systems preferred. Have a thorough knowledge of credit-related laws. Be willing to periodically travel to customer sites. Have considerable experience with customer negotiations.

Working Conditions

Works in a fast-paced office environment. Expected to travel to customer locations on short notice to conduct negotiations. Occasional overtime may be necessary.

Supervises

Credit analyst staff

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