What is a Credit Manager?

A credit manager plays a vital role in a business’ accounting and accounts receivable department. If a business works on credit terms with other businesses, the credit manager is the deciding factor on whether those potential clients become customers. They are responsible for implementing and overseeing a credit policy, deciding what factors determine a customer’s credit worthiness and eligibility for receiving credit terms.

Importance of a Credit Manager

The credit manager is the final word on whether a customer will be granted access to credit. This is extremely important because a credit policy has a direct impact on accounts receivable. If credit is extended to the wrong company, you will not collect on the invoices and could run into cash flow issues. In order to avoid these issues, a credit manager needs to vet each potential customer and ensure that the invoices will be paid for.

Additionally, many companies have the credit manager monitor invoice disputes. When an invoice goes into dispute, the chances of collecting on the full amount decrease as time goes by. The credit manager often steps in after the collection representatives has exhausted all their options to resolve the problem. The disputes are escalated to the credit manager, and they are responsible for clearing the matter immediately and making the best decision to make the most money as possible.

What to Look For in a Credit Manager

If you’re in the market looking for a credit manager, there are few key personality traits that you should look for to ensure you’re getting a candidate who is most likely going to help your company collect all that is owed. The candidate you’re looking for should be able to keep calm under pressure, since they are often times dealing with customers that are not very happy and reluctant to make payments. They should be personable, in order to create relationships with customers that will encourage them to pay on time. The credit manager should be able to make reasonable decisions, since a lot of their job will be playing the role of decision maker for the accounts receivable department.