What does a Credit Administrator do?
Published 3 min read
A credit administrator is responsible for the administration of an organization's credit policies. This may include setting credit limits, approving or denying credit applications, and managing collections. The credit administrator may also be responsible for reporting on the organization's credit portfolio and analyzing trends.
Credit Administrator job duties include:
- Review and evaluate credit data and financial statements to determine the degree of risk involved in extending credit
- Establish and maintain credit lines with banks and other lending institutions
- Analyze trends in delinquencies and recommend changes in credit policies to reduce bad debt
- Prepare periodic reports on outstanding credits and recommendations for write-offs
- Work with collections department to develop effective methods for recovering delinquent accounts
- Coordinate activities with sales, customer service, and accounting departments to ensure efficient operation of the credit function
- Monitor customer account activity and contact customers with past due balances
- Investigate and resolve customer disputes
- Review applications for new credit and make recommendations regarding approval
- Maintain updated knowledge of credit laws and regulations
Credit Administrator Job Requirements
A Credit Administrator typically needs a bachelor's degree in finance, accounting, business, or a related field. Some employers may prefer candidates who have a master's degree in business administration (MBA) with a concentration in finance. Certification through the Association for Financial Professionals (AFP) is also preferred. Employers also value experience, so candidates should have several years of experience working in credit or a related financial field.
Credit Administrator Skills
- Analytical skills
- Profit and loss analysis
- Budgeting
- Financial analysis
- Finance
- Asset management
- Real estate
- Commercial lending
- Mortgage banking
- Investment banking
- Financial modeling
- Financial planning
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How to become a Credit Administrator
A Credit Administrator is responsible for the credit function in a company. They are in charge of making sure that the company’s credit policy is adhered to and that customer accounts are properly managed. They also work with the sales and accounting departments to ensure that customer invoices are paid on time.
To become a Credit Administrator, you will need at least a bachelor’s degree in business or a related field. You should also have experience working in accounting or finance. Strong analytical and problem-solving skills are essential, as is the ability to multitask and work well under pressure.
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