What does a Credit Manager do?

Credit Managers oversee the credit-granting process at their company by assessing current and potential customers. They assess customers’ creditworthiness and whether the individual may be a liability through initial evaluation and periodic reviews.

They can help optimize sales and ensure the department meets set objectives and goals. A Credit Manager may also build and maintain relationships with collection agencies, credit reporting agencies, and insurance providers.

Credit Manager skills and qualifications

Successful Credit Managers generally need strong analytical skills. Other skills and qualifications may include:

• Negotiation skills to discuss payment plans or loan agreements
• Familiarity with credit-granting policies, or the qualifying factors for a loan, including terms of sale and applicable credit criteria
• Ability to apply credit policies consistently for unbiased application review
• Understanding of financial statements and how to analyze credit reports
• In-depth knowledge of financial ratios, such as cash coverage ratio (CCR), interest coverage ratio (ICR) and liquidity ratios
• Familiarity with applicable lending laws
• Proficiency using financial analysis tools, such as Microsoft Excel or Microsoft Power BI
• Ability to solve problems related to open credit accounts

Credit Manager experience requirements

Credit Managers typically oversee other employees, so quality candidates may have experience with supervision or management in a related field or industry. Some candidates may have experience working as Credit Analysts or Collections Specialists.

To expand your applicant pool, consider updating your Credit Manager job description to indicate you may accept candidates with experience in the banking and accounting fields. Applicants can also gain the skills needed for this role by working as a Credit Analyst, Loan Officer or AR Specialist.

Credit Manager education and training requirements

While some employers require a bachelor’s degree in finance, mathematics or a related field for Credit Manager candidates, consider applying skills-based hiring over formal education and assessing candidates’ experience with tracking payments, processing customer payments and maintaining credit-related records. Soft skills for successful Credit Managers might include strong communication and negotiation skills, analytical thinking, attention to detail, team leadership and cross-functional collaboration.

Job description samples for similar positions

If a Credit Manager isn’t quite what you need, here are several job descriptions for similar roles:

• Credit Analyst
• Credit Controller
• Loan Officer

Credit Manager job description FAQs

How can a Credit Manager help a business?

A Credit Manager can help a business by rejecting applications from borrowers with an increased risk of missing payments or defaulting on their loans. This helps minimize losses and maintain its financial stability. Credit Managers may further improve a company’s cash flow by collecting late payments and negotiating better payment terms.

Credit Managers can also help preserve a company’s reputation. If Credit Managers apply your policies consistently, applicants may have an improved customer experience.

Where do the roles and responsibilities of a Credit Manager overlap with other accounting and finance roles, such as those in AR or accounts payable (AP)?

Many individuals in the credit department can have overlapping job duties and complete tasks that support similar roles. For example, by assessing customers’ creditworthiness, Credit Managers help approve customers who are likely to pay their loans on time. This inadvertently supports AR professionals who handle payment collection and outstanding balances.

While Credit Managers oversee customers’ finances, the AP team generally manages the company’s financial operations.

What are the different types of Credit Managers?

The three main types of Credit Managers include Consumer Credit Managers, Real Estate Credit Managers and Commercial Credit Managers. A Consumer Credit Manager works with individuals who need access to some type of credit, such as secured or open-end credit. For example, a Consumer Credit Manager may work for a bank or a credit union.

A Real Estate Credit Manager analyzes financial data to determine the level of risk involved in commercial property transactions. Although Real Estate Credit Managers perform similar duties to other Credit Managers, they also typically review property appraisals containing information about a property’s features and market value.

Commercial Credit Managers work with business clients instead of individual consumers. They generally manage the credit lines of companies purchasing equipment, raw materials and other supplies on account instead of paying up front. Commercial Credit Managers are commonly employed in the manufacturing, corporate banking, wholesale and B2B sales industries.