A Credit Manager is responsible for managing the credit operations of a business or organization. They oversee the issuing and monitoring of customer credit, ensuring timely payments and minimizing financial risk to the company. In addition to working with customers and suppliers, they work closely with other departments, such as sales and accounting ensuring a streamlined workflow.
What Does a Credit Manager Do?
A Credit Manager’s responsibility is to grant credits that are secure for customers yet profitable for their employer. It involves analyzing customer credit histories and assessing risk factors associated with each account before deciding whether or not to grant them credit. They must also monitor existing accounts to ensure timely payments and customer debt levels remain within acceptable limits. In addition, they review loan applications for accuracy, completeness, and consistency with bank regulations and guidelines and perform background checks on applicants when necessary.
Other responsibilities include-
- developing credit policies and procedures;
- determining appropriate loan terms;
- establishing client financial profiles;
- preparing reports related to delinquencies;
- negotiating settlements with delinquent accounts;
- handling customer inquiries regarding overdue payments;
- closing inactive accounts;
- reviewing customer payment history monthly;
- recommending changes to improve operational efficiency;
- researching new products related to credit lines/loans/mortgages etc.;
- training staff members on best practices in collection policies;
- maintaining accurate records of activities;
- collaborating with internal departments such as sales, finance & accounting, etc.;
- responding promptly & professionally to all queries raised by customers & other external stakeholders, etc.
What Skills Does A Credit Manager Need?
You need strong problem-solving skills, excellent numerical abilities & reporting capabilities. You should be able to interpret data quickly & accurately to identify areas of improvement needed within processes or systems used by your team or organization. Furthermore, you need good communication skills written & verbal so that you can effectively communicate decisions & plans internally as well as externally via third-party contacts/partnerships where required.
What Qualifications Are Needed To Become A Credit Manager?
- To become a credit manager, one must possess a postgraduate finance, accounting, or commerce degree.
- Additionally, knowledge of banking and financial regulations, credit analysis, and risk assessment are essential to the job.
- Familiarity with financial software programs and relevant computer applications is also necessary.
- Additional certifications (e.g., Certified Credit Professional) may be required.
If you’re looking to become a credit manager in India, there are some essential guidelines-
Get Professional Experience
During your educational program, get some experience related to credit analysis via internships or projects related to this field to understand how things work practically. It is also important to gain hands-on lending industry experience as many employers look out for experienced candidates while hiring managers for their organizations.
Join Professional Organizations:
You can join professional organizations like the Credit Management Association (CMA) or the Federation of Indian Chambers of Commerce & Industry (FICCI). These organizations offer various seminars which help professionals stay current on any developments within the credit industry in India, such as laws and regulations related to debt collections, new loan products coming into the market, etc.
When you enter the job market for a managerial role, such as this one, you will need credentials and certifications from prestigious institutions like the Chartered Institute of Credit Management (CICM) or the Association of Credit Professionals (ACP). These certifications will help create essential credibility for succeeding as a Credit Manager in India.
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