Credit manager

Credit managers are responsible for the departments and systems that minimise the risk of selling goods and services on credit. They aim to keep a good cash flow for their organisation. They work for a wide range of businesses. Customers could be individuals or companies.

Also known as

• Finance manager (credit)

Work activities

Credit managers work in a wide range of organisations. They work in two main areas: trade credit and consumer credit. Trade credit operates when two companies do business together, that is, when one sells to the other. The seller usually grants credit terms to the buyer. This means that the buyer does not have to pay for the goods/services immediately. Part of the credit manager’s job is to make sure that credit is only granted to companies who can and will pay. They set up systems to show when payment is due; they then monitor the payment process, to ensure smooth cash flow for their company. Consumer credit applies when an individual takes on a debt, for example, to buy a new car. Credit terms are then arranged, allowing the customer to pay off the purchase price in instalments.

Credit controllers and managers assess the creditworthiness of the customer and then decide whether or not to grant credit. Credit managers might visit a company applying for a large amount of credit in order to decide if a contract should be agreed. If the customer is granted credit, the credit manager monitors the progress of repayments. If either trade or consumer customers fail to make repayments, a process of issuing reminders is required. If the customer still fails to pay, legal action is taken. Credit managers and senior credit controllers might be responsible for these processes. In larger companies, credit managers might be responsible for a team of credit control staff who carry out the day-to-day credit activities. Credit managers are responsible for strategy and policy making, staff supervision and training, problem solving and reporting to senior management. They make sure that the company has strong financial controls in place so that credit can be managed effectively. Some credit managers specialise in export credit, dealing with business customers in other countries.

Personal qualities and skills

As a credit manager, you’ll need to be able to:

• Understand people and business methods.
• Negotiate with people who could be in financial difficulty.
• You should have:
• Commercial awareness.
• A good knowledge of business law and accounts.
• Strategic planning ability.
• Good numeracy and communication skills.
• Tact and diplomacy.
• Leadership, decision-making, planning and supervisory skills.
• IT and report-writing skills.

You may need a full driving licence. The ability to speak a foreign language could be useful in companies that sell their goods or services abroad.

Pay and opportunities

Salaries for credit managers are similar to those in the accounting professions. Salaries vary depending on the size and location of the employer, type of business and responsibilities. Credit managers earn in the range of £21,000 - £32,000 a year. Additional benefits may include a bonus and company car or car allowance.

Credit managers usually work 37 to 40 hours, Monday to Friday, but are often required to be flexible and work longer hours, especially during busy times.

Employment is in almost every type of business in industry and commerce. Opportunities for credit managers occur in towns and cities throughout the UK.

Where are vacancies advertised?

Vacancies are advertised in local/national newspapers, on job boards, on employers’ websites, through the Chartered Institute of Credit Management website, on the Government’s Find a Job service.

Entry routes and training

Entrants to credit management levels must have experience in credit control.

On-the-job training is combined with study for the Chartered Institute of Credit Management’s (CICM) qualifications. You might be able to get exemptions from some of the exams if you already have certain relevant qualifications.

You could undertake a level 2 (intermediate) or level 3 (advanced) apprenticeship in credit control and work your way up.

A range of colleges and universities offer degrees in finance management, including at foundation and postgraduate level – many of the courses will have modules or elements of credit management. Always check with the course provider to find out the exact content of the course.  Study can be full or part time/flexible or via distance learning. Courses have been developed in partnership with the finance industry.

Credit managers can progress by taking on more responsibility or by moving to bigger organisations. Some might progress to senior financial management or director positions.

Rehabilitation of Offenders Act: Working as a credit manager can be an exception to the Rehabilitation of Offenders Act 1974, if the post holder is an Approved Person. This means that you must supply information to an employer about any spent or unspent convictions, cautions, reprimands or warnings, if they ask you to. This is different from other careers, where you only have to reveal information on unspent convictions if you are asked to.

Qualifications

Entrants to credit management must have relevant experience. Some people enter credit careers as graduates. For entry to a degree course in any subject, the usual minimum requirement is:

• Two to three A-levels.
• GCSEs at grades 9-4 in two to three other subjects.

Alternatives to A levels include:

• Edexcel (BTEC) level 3 National qualifications
• International Baccalaureate (IB) diploma.

To take an intermediate or advanced apprenticeship, you’ll need GCSEs in English and maths, although you may be able to complete these alongside your apprenticeship programme.

Adult opportunities

Age limits: It is illegal for any organisation to set age limits for entry to employment, education or training, unless they can show there is a real need to have these limits.

Some new entrants have developed skills by working in banking, insurance, building society or accounting work, for example, as a credit controller, bookkeeper or accounting technician.

If you don’t have the qualifications needed to enter your chosen degree or HND course, a college or university Access course (for example, Access to Business) could be the way in. These courses are designed for people who have not followed the usual routes into higher education. No formal qualifications are usually needed, but you should check this with individual colleges. Candidates without formal qualifications can register as students with the Chartered Institute of Credit Management (CICM).

The CICM Diplomas offer qualifications in Credit Management at Levels 2, 3 and 5 that can be studied by distance learning or at evening classes. Further details are on the CICM website.

Related careers

• Accountant
• Bank manager
• Chartered secretary
• Credit controller
• Debt collector
• Manager