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.
Credit manager responsibilities
Here are examples of responsibilities from real credit manager resumes:
- 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.
- Implement e-signature of loan documents and e-funding (loan origination system to fund/disperse loans).
- Work closely with internal audit to write policy that is SOX compliant as it pertains to the credit department.
- Leverage relationships with internal/external customers to minimize the DSO and bad-debt exposure.
- Audit monthly reconciliations of accounts receivable and purchasing powers for clients base on account status
- Issue credit and debit memos, accounts receivable reconciliations and respond to customer requests for documentation
- Implement export inter-company DSO analysis to provide visibility to the business as it significantly impacts working capital.
- Implement necessary monthly accounting reconciliations to meet SOX requirements and successfully pass several SOX and several internal/external audits.
- Supervise staff of collections representatives responsible for reducing bad debt while also upholding company policies, and following strict legal regulations.
- Adhere to FDCPA and FACTA.
Credit manager skills and personality traits
We calculated that 16% of Credit Managers are proficient in Customer Service, Financial Statements, and Credit Card. They’re also known for soft skills such as Analytical skills, Communication skills, and Detail oriented.
We break down the percentage of Credit Managers that have these skills listed on their resume here:
- Customer Service, 16%
Managed escalated customer service issues and complaints, while ensuring adherence to quality service guidelines and manage related systems.
- Financial Statements, 9%
Ensured proper documentation was obtained, completed credit application, sales tax exemption certificates, personal guarantees and financial statements.
- Credit Card, 5%
Trained associates to strategically monitor/authorize credit card charges based on customer financial review to evaluate potential risks.
- Credit Risk, 5%
Provided assistance with day-to-day functions of credit department, including investigation and analysis of credit risk while working within established guidelines.
- Credit Policy, 5%
Administered Credit Policy and Procedures, managed Credit team, collaborated with Collections Department and supported its efforts on problematic accounts.
- Customer Accounts, 4%
Assisted with transition of customer accounts to corporate office and collected remaining account balances during integration process with new parent company.
"customer service," "financial statements," and "credit card" are among the most common skills that credit managers use at work. You can find even more credit manager responsibilities below, including:
Analytical skills. The most essential soft skill for a credit manager to carry out their responsibilities is analytical skills. This skill is important for the role because "to assist executives in making decisions, financial managers need to evaluate data and information that affects their organization." Additionally, a credit manager resume shows how their duties depend on analytical skills: "ensured department members were trained on various computer systems/programs, company procedures, and credit analysis plus credit-related internet sites. "
Communication skills. Another essential skill to perform credit manager duties is communication skills. Credit managers responsibilities require that "financial managers must be able to explain and justify complex financial transactions." Credit managers also use communication skills in their role according to a real resume snippet: "communicated credit policy throughout the unit which included fifteen senior bankers thus excellent communication skills were essential in this role. "
Detail oriented. This is an important skill for credit managers to perform their duties. For an example of how credit manager responsibilities depend on this skill, consider that "in preparing and analyzing reports, such as balance sheets and income statements, financial managers must be precise and attentive to their work in order to avoid errors." This excerpt from a resume also shows how vital it is to everyday roles and responsibilities of a credit manager: "prepared detailed credit analysis of various commercial loans. ".
Math skills. A big part of what credit managers do relies on "math skills." You can see how essential it is to credit manager responsibilities because "financial managers need strong skills in certain branches of mathematics, including algebra." Here's an example of how this skill is used from a resume that represents typical credit manager tasks: "prepared month end reports including days sales outstanding, cash flow projections and credit approval statistics. "
Organizational skills. A commonly-found skill in credit manager job descriptions, "organizational skills" is essential to what credit managers do. Credit manager responsibilities rely on this skill because "because financial managers deal with a range of information and documents, they must have structures in place to be effective in their work." You can also see how credit manager duties rely on organizational skills in this resume example: "plan and provide leadership, direction, and support to direct reports and staff members in order to meet organizational objectives. "
The three companies that hire the most credit managers are:
- Ernst & Young37 credit managers jobs
- Bank of America34 credit managers jobs
- Deloitte28 credit managers jobs
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Compare different credit managers
Credit manager vs. Accounts receivable manager
An accounts receivable manager is responsible for overseeing the financial matters in a business or company, focusing on the generated sales and income. Moreover, they are also responsible for maintaining an accurate and efficient collection of payments, conducting research and analysis, and supervising the workforce, striving to meet all the goals within the allotted time. As a manager in the department, it is also vital to lead fellow skilled professionals and implement the policies and regulations of the company or organization.
There are some key differences in the responsibilities of each position. For example, credit manager responsibilities require skills like "credit card," "credit risk," "credit policy," and "credit lines." Meanwhile a typical accounts receivable manager has skills in areas such as "reconciliations," "general ledger accounts," "medicaid," and "process improvement." This difference in skills reveals the differences in what each career does.
Accounts receivable managers earn the highest salaries when working in the technology industry, with an average yearly salary of $83,928. On the other hand, credit managers are paid more in the finance industry with an average salary of $86,294.On average, accounts receivable managers reach similar levels of education than credit managers. Accounts receivable managers are 1.4% less likely to earn a Master's Degree and 0.0% more likely to graduate with a Doctoral Degree.Credit manager vs. Senior credit analyst
A senior credit analyst is responsible for reviewing the loan applications of an individual and organization, determining their eligibility by evaluating their credit scores and financial history. Senior credit analysts assess the applicant's capability to pay according to terms and conditions and loan payment plans. They submit recommendation reports of qualified applicants for further investigation and have them submit additional documents as needed. A senior credit analyst decides on credit limits and may provide the applicants' loan and credit alternatives, requiring them to have excellent knowledge of the financial industry and loan options.
While some skills are similar in these professions, other skills aren't so similar. For example, resumes show us that credit manager responsibilities requires skills like "financial statements," "accounts receivables," "credit lines," and "financial analysis." But a senior credit analyst might use other skills in their typical duties, such as, "real estate," "risk management," "loan portfolio," and "cash flow."
Senior credit analysts may earn a higher salary than credit managers, but senior credit analysts earn the most pay in the finance industry with an average salary of $90,023. On the other hand, credit managers receive higher pay in the finance industry, where they earn an average salary of $86,294.Average education levels between the two professions vary. Senior credit analysts tend to reach similar levels of education than credit managers. In fact, they're 4.5% more likely to graduate with a Master's Degree and 0.0% less likely to earn a Doctoral Degree.Credit manager vs. Banking center manager
A banking center manager is responsible for monitoring bank operations, auditing financial transactions, and ensuring that the banking staff provides the highest customer service for their clients. Banking center managers assist the team members in responding to the customers' inquiries and concerns regarding the financial options they offer, opening accounts, selling financial instruments, and resolving transactional complaints. A banking center manager must have excellent communication and analytical skills, especially in developing banking solutions that would increase the bank's reliability to the customers.
The required skills of the two careers differ considerably. For example, credit managers are more likely to have skills like "customer service," "financial statements," "credit risk," and "credit policy." But a banking center manager is more likely to have skills like "business development," "bank products," "bank policies," and "customer relationships."
When it comes to education, banking center managers tend to earn similar degree levels compared to credit managers. In fact, they're 0.3% less likely to earn a Master's Degree, and 0.1% less likely to graduate with a Doctoral Degree.Credit manager vs. Finance center manager
The duties of a finance center manager depend on one's place or industry of employment. Typically, they are responsible for overseeing the operations of a financial center, ensuring everything is running smoothly. They are also responsible for performing clerical tasks such as producing progress reports and presentations, managing schedules, setting goals and deadlines, processing documents, and maintaining data and records of all financial activities. Furthermore, as a manager, it is essential to lead and encourage the team, all while implementing the company's policies and regulations.
Types of credit manager
Updated January 8, 2025
