What does a Credit Manager do?

A credit manager’s job is to collect money owed for goods and services. This type of manager might be hired a company to keep track of accounts, negotiate payments, and participate in collections and legal actions as needed in the event of non-payment. In order to fulfill her responsibilities, this type of credit supervisor frequently collaborates with banking institutions and credit agencies. Furthermore, this manager will safeguard her company researching and avoiding bad credit situations.

While issuing invoices, settling accounts, and tracking payments are all important aspects of the credit manager’s job, most credit managers must also deal directly with customers and outside organizations. If a customer’s payment is severely delayed, the credit manager initiates any necessary collection actions and consults with lawyers and others involved in legal action. The credit manager is typically required to provide documentation and reports outlining payment history and accounting details in collections and legal situations. This manager also communicates with banks on a regular basis during the processing of payments and money transfers, and conducts financial investigations using bank and credit approval agency resources.

A credit manager’s responsibilities vary depending on the size of the organization for which she works. These professionals may specialize in one area, such as collections, at larger companies, whereas those at smaller companies may be responsible for a wide range of credit functions, including general office tasks. A credit manager may be required to supervise others and create and maintain appropriate credit and payment policies and procedures in both large and small businesses.

Part of the credit manager’s job is to protect her company from risky credit extensions; however, approving credit is also an important aspect of this position. To ensure that her company receives timely payments, the manager conducts research and checks the backgrounds and payment histories of individuals and companies.

This manager spends a significant amount of time during the workday communicating and networking with others via computerized devices, phone, and mail. She’ll almost certainly send out statements and spend time tracking and following up on account payments. She could be assigned to special accounts or projects, or she could have a more general role at the firm. A credit manager may meet with senior level employees to develop, maintain, and evaluate company policies and practices in some cases. She also keeps in touch with people who work in the banking, legal, and accounting industries.