A credit manager is responsible for the credit policy of a company and for managing the credit department. They set credit limits, approve or deny credit applications, and oversee the collections process.
Credit Manager job duties include:
- Reviewing and authorizing credit applications
- Analyzing customer financial statements
- Setting credit limits in accordance with company policy
- Monitoring credit risk exposure and taking appropriate action
- Working with customers to resolve past due accounts
- Negotiating payment arrangements as necessary
- Reporting on the status of accounts receivable
- Identifying trends in customer payment behavior
- Assisting in the development and implementation of credit policies
- Training and supervising credit analysts
Credit Manager Job Requirements
Most credit managers have a bachelor’s degree in finance, accounting, or a related field. Some employers may require certification, such as Certified Public Accountant (CPA) or Certified Financial Manager (CFM). Many credit managers have several years of experience working in accounting or finance.
Credit Manager Skills
- Analytical skills
- Profit and loss analysis
- Financial analysis
- Budgeting
- Forecasting
- Variance analysis
- Financial modeling
- Finance
- Asset management
- Real estate
- Banking
- Lending
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How to become a Credit Manager
Credit managers are responsible for the creditworthiness of a company. They make sure that the company does not become overextended and that it maintains a good credit rating. To become a credit manager, you will need to have a strong understanding of financial principles and be able to analyze financial statements. You should also be able to negotiate with creditors and have excellent communication skills.
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