Credit Manager

A credit manager is a person employed by an organization to manage the credit department and make decisions concerning credit limits, acceptable levels of risk and terms of payment to their customers. In companies, the role of Credit manager is variable in its scope. Credit managers are responsible for:

• Controlling bad debt exposure and expenses, through the direct management of credit terms on the company's ledgers.
• Maintaining strong cash flows through efficient collections. The efficiency of which is measured using Days Sales Outstanding (DSO).
• Ensuring an adequate Allowance for Doubtful Accounts is kept by the company.
• Monitoring the Accounts Receivable portfolio for trends and warning signs.
• Enforcing the "stop list".
• Determine credit ceilings.
• Setting credit-rating criteria.
• Setting and ensuring compliance with a corporate credit policy.
• Obtaining security interests where necessary. Common examples of this could be PPSA's, letters of credit or personal guarantees.
• Initiating legal or other recovery actions against customers who are delinquent.

Credit managers tend to fall into one of two groups due to the differing specialty legal and jurisdictional knowledge required:

1. Commercial Credit Managers
2. Consumer Credit Managers

Companies which sell to both markets will require a Credit manager familiar with both aspects of Credit management.