Credit Manager

Credit managers aim to ensure that businesses receive prompt payment for the goods or services they supply to customers. This is done by establishing and managing a company's credit policy. Credit managers work in one of two main fields:

• trade credit - managing money owed to the company by other businesses in return for goods or services
• consumer credit - managing debts that are to be paid off in instalments by individuals, such as a loan for a car or borrowing on a credit card.

Tasks may include:

• setting up a company's credit policies and reviewing them from time to time
• assessing the financial record of potential customers, using a range of credit checks
• setting or negotiating terms with customers
• contacting customers who fail to make repayments, to remind and encourage them to meet their obligations
• overseeing legal action against customers who continue to breach payment terms
• in a larger organisation, recruiting, training and managing the credit team.

In some companies, credit managers take hands-on responsibility for all credit issues. In larger organisations, they may take a more strategic role.

Credit managers generally work standard office hours, Monday to Friday. Those involved with consumer credit may work more variable hours, including some evenings and weekends. Part-time work may be possible. The work is office based.

Salaries range from at least £25,000 a year for a newly appointed manager up to £70,000 a year for the more highly paid credit managers.

A credit manager should:

• have a confident and assertive manner
• have excellent communication skills
• work with accuracy and attention to detail
• be able to analyse information
• be confident working with numbers and computers
• be persuasive
• be able to negotiate with people who may be in financial difficulty
• enjoy working in the commercial field.

Credit managers are employed by businesses in many areas, including banking, retail, manufacturing and service industries.

Credit managers often enter the job after gaining experience in a more junior role, such as credit controller or credit supervisor. There are no set entry requirements for credit controllers, but employers often ask for GCSEs (A*-C) in maths and English, or equivalent qualifications. The Diploma in business, administration and finance may be relevant for this area of work. Experience in a related field, such as banking or accountancy, may be helpful.

Employers may prefer candidates with a degree, often in a related subject such as business, finance or accounting.

Training is usually on the job, often combined with study for qualifications. Credit managers can work towards qualifications offered by the Institute of Credit Management, as well as those of other organisations.

A credit manager employed by a larger organisation may be promoted to senior credit manager, regional credit manager, credit director or group credit director. Those in smaller organisations may need to change employers to advance their careers. There may be opportunities to work abroad. Credit managers may become consultants or move into related fields, such as risk management or customer service.

Further details