The Role & Expectations
As a credit manager, you help a business work out whether to lend money to other businesses or people. You look at their finances and track record to spot who is likely to pay the money back, and who might struggle. This job mixes maths with working out how trustworthy someone is.
Each day you might look at new loan requests, checking whether the person or business can afford to repay it. You set up rules that the company follows when lending, keep an eye on customers who already owe money, and alert the team if someone looks like they might not pay back. You need to be careful and tidy-minded, able to spot patterns in numbers, and good at working with people in sales and finance teams.
Daily Responsibilities
- Evaluate credit applications and conduct thorough credit assessments to determine risk levels.
- Monitor and manage existing credit accounts, ensuring timely payments and identifying potential defaults.
- Develop and implement credit policies and procedures to mitigate financial risks.
- Collaborate with sales and finance teams to align credit decisions with business objectives.
- Prepare detailed reports on credit risk exposure and present findings to senior management.
- Conduct regular audits of credit portfolios to ensure compliance with regulations and internal policies.
- Negotiate payment terms and settlements with clients to facilitate cash flow.
- Stay updated on industry trends and economic factors affecting credit risk.