Credit manager vs collections manager

The differences between credit managers and collections managers can be seen in a few details. Each job has different responsibilities and duties. It typically takes 6-8 years to become both a credit manager and a collections manager. Additionally, a credit manager has an average salary of $68,583, which is higher than the $59,529 average annual salary of a collections manager.

The top three skills for a credit manager include customer service, financial statements and credit card. The most important skills for a collections manager are customer service, collection management, and portfolio.

Credit manager vs collections manager overview

	Credit Manager	Collections Manager
Yearly salary	$68,583	$59,529
Hourly rate	$32.97	$28.62
Growth rate	17%	17%
Number of jobs	63,898	44,553
Job satisfaction	-	-
Most common degree	Bachelor's Degree, 67%	Bachelor's Degree, 51%
Average age	46	46
Years of experience	8	8

What does a credit manager do?

A credit manager is an individual who supervises the credit granting process for a company by evaluating the creditworthiness of potential customers. Credit managers must maintain corporate credit policy to optimize company sales and reduce bad debt losses. They must manage the proper relationship with agencies such as the collection agency, credit insurance providers, and the sales department. Credit managers may work in different industries such as banks, accounting firms, or auto dealerships. They must also possess a bachelor's degree in financial management or related field.

What does a collections manager do?

A collections manager is an individual who manages a staff of collectors whose job is to contact companies and individuals for the late payments on the products and services they have received. Collections managers oversee a company's process of retrieving money owed to them by assigning collectors to collect the money. They are required to handle customer complaints and must negotiate with customers about payment arrangements to ensure they are being paid. They also provide reports on the collection department's progress, statistics, and data analysis.

Credit manager vs collections manager salary

Credit managers and collections managers have different pay scales, as shown below.

	Credit Manager	Collections Manager
Average salary	$68,583	$59,529
Salary range	Between $39,000 And $119,000	Between $42,000 And $83,000
Highest paying City	San Francisco, CA	New York, NY
Highest paying state	Oregon	New York
Best paying company	Microsoft	Amazon
Best paying industry	Finance	Health Care

Differences between credit manager and collections manager education

There are a few differences between a credit manager and a collections manager in terms of educational background:

	Credit Manager	Collections Manager
Most common degree	Bachelor's Degree, 67%	Bachelor's Degree, 51%
Most common major	Business	Business
Most common college	University of Pennsylvania	Stanford University

Credit manager vs collections manager demographics

Here are the differences between credit managers' and collections managers' demographics:

	Credit Manager	Collections Manager
Average age	46	46
Gender ratio	Male, 53.9% Female, 46.1%	Male, 50.8% Female, 49.2%
Race ratio	Black or African American, 7.9% Unknown, 4.1% Hispanic or Latino, 15.3% Asian, 7.8% White, 64.5% American Indian and Alaska Native, 0.3%	Black or African American, 8.0% Unknown, 4.1% Hispanic or Latino, 15.5% Asian, 7.3% White, 64.7% American Indian and Alaska Native, 0.3%
LGBT Percentage	11%	11%

Differences between credit manager and collections manager duties and responsibilities

Credit manager example responsibilities.

Manage treasury department including all cash management, bank relationships, and debt negotiations.
Manage an initiative to move customers from checks to ACH with CTX or EDI remittances.
Partner with small and entrepreneurial business to develop business plans and assist business owners with achieving payroll.
Launch the new SBA lending and residential mortgage lending programs.
Complete loan workouts and restructures on SBA 504 and LIHTC multifamily loans.
Leverage GBM using features generate on Experian's tradeline data through unsupervise learning tool Khiops.

Collections manager example responsibilities.

Achieve 182 FTE save, and annual net saving of $2.8MM
Manage Medicaid accounts in effort to receive payment from them.
Manage self pay and Medicaid pending collections throughout the southeast region.
Organize the managed care effort to ensure that patients are not accept from incorrect PPO's and HMO's.
Create and implement new quantitative process to achieve corporate DSO targets that determines monthly cash collection targets by business unit.
Achieve historical low of six percent in A/R over 30 days past due and reduction of DSO to 53 days.

Credit manager vs collections manager skills

Common credit manager skills

Customer Service, 16%
Financial Statements, 9%
Credit Card, 5%
Credit Risk, 5%
Credit Policy, 5%
Customer Accounts, 4%

Common collections manager skills

Customer Service, 15%
Collection Management, 9%
Portfolio, 7%
FDCPA, 5%
Delinquent Accounts, 4%
Credit Card, 4%

Credit Manager vs. similar jobs

Credit Manager related careers

Credit Manager related jobs

What similar roles do

Zippia Careers
Executive Management Industry
Credit Manager
Credit Manager vs Collections Manager

Updated January 8, 2025

Browse executive management jobs