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Who is a Credit Manager?
Creditor One of a tribe of savages dwelling beyond the financial straits and dreaded for their desolating incursions ~ Ambrose Bierce
A credit manager is a professional working to help in the credit-granting process for a company. A credit manager is tasked with assessing a client's creditworthiness, determining credit limits, discussing terms, and making sure compliance is prioritised. In addition to granting credit, he or she is responsible for continuously applying credit policies in order to increase company revenues.
It is also vital for credit managers to monitor the payment patterns of clients on a regular basis to minimise credit risk and debt. He or she manages the company's accounts receivable portfolio and resolves disputes or accounts with faults. Overall, to work as a credit manager, one needs to develop and implement credit policies and procedures for the organisation.
Quick Facts for Credit Manager
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Industry
Finance
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Average Salary in India
₹65500
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Suitable for
Male, Female, Others
An individual can take up a career as a Credit Manager, it is not gender-specific. Men, women, and others can choose a career as a credit manager. The job is suitable for everyone irrespective of their gender. An individual is required to be familiar with credit management tools.
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Any special needs
Yes
The career as a Credit Manager is well-suited to everyone, even those with special needs. However, being a desk job, Credit Management becomes a suitable career for people with special needs. If he or she is having accurate qualifications and skills can surely work as well as excel in Credit Management.
Table of Contents for Credit Manager
What is the role of Credit Manager?
The credit managers roles and responsibilities vary from organisation to organisation. They research a client's creditworthiness and determine whether he or she is creditworthy, create credit scoring models to predict risks, approve or reject loan requests, negotiate loan terms with clients, and monitor their payments.
Credit managers manage relations with delinquent customers.
They oversee the financial collection department.
They supervise staff to ensure correct billing and receipt of finance.
They work for credit card companies or collection agencies.
Credit managers oversee sales work, manage credit files, and conduct periodic credit reviews.
They minimise financial losses, ensure sales growth, and protect against non-payment and catastrophic losses.
Types of a Credit Manager
There are various types of a Credit Manager such as commercial credit manager, consumer credit manager, construction credit manager and corporate credit manager. We have discussed below the types of Credit Managers or career options related to them with their job description.
Commercial Credit Manager: Commercial credit managers are responsible for a variety of tasks including sales expansion, better financing terms, reduction in bad debt reserves, actionable economic knowledge, protection against non-payment, increase in sales and profits, and improved lender relationship.
Consumer Credit Manager: Consumer credit managers are required to use letters and phone calls to contact delinquent customers. They oversee the business financial collection department. These types of credit management jobs are to supervise the staff to confirm all finance owed to the company is billed and received correctly and in a timely manner.
Construction Credit Manager: Construction credit managers are responsible for determining the credit amount needed and defining the necessary conditions. They also prepare various documentation such as credit applications, sales agreements, contracts, purchase orders, bills of lading, delivery receipts, invoices, and correspondence.
Corporate Credit Manager: Corporate credit managers primarily help in the credit-granting process for corporations and ensure their financial health. They also analyse credit data, evaluate the financial stability of customers, analyse credit data, and give recommendations. They also collaborate with sales teams to boost company revenue.
What is the workplace/work environment of Credit Manager like?
The Credit Manager roles and responsibilities vary from organisation to organisation. In this field, the capability of an individual solely depends on the job and the individual. One who opt for a career as credit manager is sometimes overwhelmed and might be required to work overtime.
Does Credit Manager require travelling?
Likely
An Individual who opt for a career as Credit Manager supervises the operations of retail stores and credit bureaus and the extent and size of the operation decide each Manager’s duties and responsibilities. In small firms, a credit manager is expected to help customers fill out applications for credit lending. He or she is required to check the reference list and decide whether the credit has to be granted or not.
Time Pressure
Likely
In the case of a Credit Manager job, time pressure increases during the end of tax months or financial years. In situations like this, a Credit Manager is required to work overtime. Generally, when the work pressure is low, the Credit Manager works according to his or her scheduled time. But the time pressure increases during the end of tax months or a specific project deadline.
How to become a Credit Manager?
Steps to become a Credit Manager
Becoming a credit manager is a path to a rewarding career in finance and risk management. In this section, we will guide you through the steps to achieve this role, from building a strong educational foundation to developing the essential skills required. Whether you are looking to help businesses make informed lending decisions or manage credit risks effectively, this article will provide you with a clear roadmap to becoming a successful credit manager.
What are the skills and qualities required to become a/an Credit Manager?
When it comes to how to become a credit manager, the first thing that they should know about credit manager skills. Some of the essential credit manager skills we have mentioned are below.
Decision-Making Skills: Individuals who opt for a career as Credit Managers are required to review the credit scores of their potential customers along with managing the financial losses and gain for the firm. Hence it is important to possess accurate decision-making skills and be able to conduct a proper judgement.
Patience: Credit Management is a task that requires a lot of awareness and precautions before taking a decision. There are times when Credit Managers are required to manage their staff along with supervising the financial reports which requires them to remain calm under pressure. Only proper confidence and calmness can ensure an appropriate result.
Numerical Ability: Individuals who opt for a career as a Credit Manager are responsible for determining the creditworthiness of their potential customers, they are also required to calculate financial reports of individual customers and firms. Credit Management is a task that involves a lot of accounting and mathematics. Hence, possessing a high level of numeracy skills is a must for excelling in the field.
Leadership: Credit Managers supervise and oversee the staff working with them. They are required to manage the work of each and every employee who works under their supervision. In a scenario like this, exhibiting excellent leadership skills and teamwork skills are mandatory for credit managers.
Organisational Skills: Since Credit Managers oversee a big staff and supervise almost every customer's details personally, they are required to work under proper organisation. Credit managers are required to work in a team with proper conduct and so are required to possess proper organisational skills in addition to teamwork skills.
Attention to Detail: Credit management involves accounting, money losses, analyses of information and data of customers and the credit department. There is a big pile of numerical data which is to be handled by the credit managers. They must possess accuracy in calculations since a single mistake can result in a big hazard.
Communication Skills: Individuals who opt for a career as credit managers work with a big staff, they supervise and oversee professionals working under them. They also manage the customers and directly interact with them in order to conduct proper research for creditworthiness. Credit managers are also required to conduct meetings and present their projects in front of clients and customers. It is important for credit managers to possess good spoken and written communication skills.
Active Learning: Active learning involves understanding the implications of new information for both current and future problem-solving and decision making which is an important asset for employees working in credit management.
Critical Thinking: Management of the credit department requires sharp critical thinking skills which involve using logic and reasoning to identify the strengths and weaknesses of alternative solutions, conclusions, or approaches to problems.
Which certifications and internships can be helpful in becoming Credit Manager?
Several certification courses that aspiring individuals and working professionals can opt to upgrade their skills and knowledge are mentioned below.
Internship Availability
Internships play a crucial role to acquire a full-time Credit Manager job role. An individual who opts for a career as credit manager is required to work as an intern for a firm or organisation in order to get industry exposure and learn applications of the Credit Management tools taught in college. An individual can work for various organisations for positions such as accountant, finance operator, subject matter expert, online teacher, research and stock trader, and management supervisor assistant.
A Credit Manager role in banks is chosen on the basis of interests and requirements the students possess. Generally, internships are unpaid and students are required to work under the supervision of professionals. However, if possessing strong technical skills along with a good academic background, students get paid for their internship.
Credit Manager Jobs and Salaries
Junior Credit Manager
- Average Salary 51000
Job Description
The job description of a junior credit manager includes meeting applicants and potential customers to understand their loan requirements, gathering loan information based on specific criteria, analysing and verifying applicants financial information, explaining and presenting different financial credit options to the potential customers, presenting approval and rejection decisions to management, ensuring credit terms and conditions comply with government regulations.
Salary Description
A junior credit manager salary with intermediate experience of one to four years ranges between Rs. 3.0 Lakhs to 12.4 Lakhs with an average annual salary of Rs. 7.4 Lakhs.
Senior Credit Manager
- Average Salary 80000
- Senior Level Salary 150000
Job Description
Senior credit managers are responsible for overseeing the interns and junior staff in addition to the responsibility for researching and evaluating the client’s creditworthiness, creating credit scoring models to predict risks, approving or rejecting the loan requests, based on credibility and potential revenues. They also monitor payments, maintain records of loan applications, following up with the clients to manage debt settlements and loan renewals.
Salary Description
Senior Manager credit salary in India ranges between Rs. 6 Lakhs to Rs. 21 Lakhs with an average salary of 12.9 Lakhs, which is quite impressive.
Disclaimer: “ The salary figures mentioned anywhere in this article are just for reference purposes. Please treat them as such. Actual salaries may vary depending on respective candidates, employer, job location, job profile and many other factors. “
What is the job outlook for Credit Manager?
There are several industries like NBFCs, auto manufacturers, retail store chains, and even utilities and energy companies that extend credit to their customers and require Credit Managers to do it for them. A fair share of credit managers work for lending institutions such as banks, or insurance companies.
In addition to this, there is a great requirement for credit managers in investment, working for an asset manager or private equity firm in the position of bond analyst, or for rating agencies like Moody's. There are a lot of opportunities for credit managers, specifically in the private sector.
Frequently Asked Questions for Credit Manager
Que. What makes a good credit manager?
Ans.The best credit managers are able to motivate the people around them and make them feel valued. Individuals who opt for a career as credit managers should have a good working relationship with the sales department and be involved in the sales process from the moment a customer is given credit terms.
Que. What are the duties of a credit manager?
Ans.Individuals who opt for a career as credit managers are responsible for overseeing the credit granting process for a company. Their job is to optimise company sales and reduce bad debt losses by maintaining the credit policy.
Que. What does a credit manager do?
Ans.Individuals who opt for a career as credit managers are employed by an organisation to manage the credit department and make decisions concerning credit limits, acceptable levels of risk, terms of payment and enforcement actions with their customers.
Que. What is a credit manager’s salary?
Ans.The Credit Manager salary in India ranges between Rs 3.0 Lakhs to Rs 12.4 Lakhs with an average annual salary of Rs 7.4 Lakhs according to the AmbitionBox.
Que. Who is a Chartered Accountant?
Ans.A chartered accountant qualification requires a successful completion of the chartered accountancy certification programme from ICAI. Chartered accountants are required across various business organisations in India whether private or public.
Que. How to become a credit manager in a bank?
Ans.You will be required to have a bachelor's degree in finance, economics, banking, insurance, or any other equivalent field to get a credit manager job in a bank. Usually, some top banks give preference to chartered accountants or MBAs.
Que. What is a credit manager?
Ans.In a credit manager job role, individuals access customer credit capacity, and credit limit and they make customers understand credit terms efficiently. Credit managers help organisations to ensure all the compliance is done.
Que. How much do credit managers make?
Ans.Junior credit managers with intermediate experience of one to four years range between Rs. 3.0 Lakhs to 12.4 Lakhs with an average annual salary of Rs. 7.4 Lakhs. Senior credit managers can make Rs. 21 Lakhs annually.
Que. What makes a good credit manager?
Ans.The best credit managers are able to motivate the people around them and make them feel valued. Individuals who opt for a career as credit managers should have a good working relationship with the sales department and be involved in the sales process from the moment a customer is given credit terms.
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Did you know?
Fact 1
Credit is not extended to customers until their identity has been checked and their creditworthiness established.
Fact 2
Terms of trade set out the rights and obligations of each party and should be agreed upon.
Fact 3
A payment collection plan should be established as it should not be assumed that payment will be made automatically once an invoice has been issued.
