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.
• Setting and ensuring compliance with a corporate credit policy.
• Obtaining security interests where necessary, such as a Debenture or a Cross Company guarantee, against credit extended.
• Initiating legal or other recovery actions against non-payers.

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

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

Australia

Credit managers in Australia obtain memberships from the Australian Institute of Credit Management (AICM). Qualifications and continuing education can also be obtained from here.

Canada

Credit professionals in Canada can obtain the official designation, Certified Credit Professional - CCP (formerly known as the Fellow Credit Institute - FCI) , from the Credit Institute of Canada.

United Kingdom

Credit managers operating within the United Kingdom can obtain accreditation from the Institute of Credit Management.

See also

• Accountant
• Bookkeeper
• Billing