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How to become a Credit Manager

credit manager careers

What does a Credit Manager do?

Credit managers control and protect the debts owed to their businesses by customers. They are employed by companies that sell goods or services, or by organisations such as banks, building societies, hire purchase companies, and credit card companies. There are two types of credit manager:

  • commercial credit managers, who deal with business customers
  • consumer credit managers, who deal with credit taken out by members of the public.
In large organisations, credit managers may manage a team of credit controllers who carry out much of the daily administrative work, leaving the decision making and tasks that require specialised knowledge to the credit manager. In smaller organisations, the credit manager is likely to undertake most of the work personally.

There are three main areas of work:

  • risk assessment - which involves gathering financial information on the customer’s creditworthiness, analysing the information, and deciding whether to offer credit
  • debt collection - which may include visiting the customer and offering advice, setting up systems for repayment of the debt, or instigating legal action if recovery proves difficult
  • insolvency work - credit managers may be involved in insolvency proceedings, including meeting with other creditors, recovering goods, or arranging for a liquidator to wind up a company and sell off its assets.

What's the working environment like working as a Credit Manager?

A credit manager usually works 9am to 5.30pm, Monday to Friday. Longer hours may be necessary at certain times of the month or financial year. In some organisations there may be opportunities for part-time work.

The work is mainly office-based, but time may be spent out of the office, visiting customers and other organisations or attending court proceedings. Credit managers may have to spend short periods of time away from home on business, and there may be some travel overseas.

What does it take to become a Credit Manager?

As a credit manager, you should:

  • have management experience, ideally in the financial sector
  • be business focused, with a good knowledge of the local economy
  • have a high level of numeracy and IT skills
  • be able to work accurately
  • have good interpersonal and communication skills
  • be methodical and organised
  • be able to motivate staff
  • have highly developed analytical and investigative skills.

Credit Manager Career Opportunities

There are good prospects all over the UK, particularly in London and the south-east, where there are often more vacancies than applicants.

Promotion is usually to credit manager of a larger organisation or group of companies, or to more senior general management positions within the same organisation, such as senior financial manager or director.

There may be opportunities to work within accountancy firms specialising in insolvency work. There are opportunities for self-employment as consultants, advising businesses on credit systems.

Further information

If you would like to know anything about Credit Manager that does not appear on Hotcourses, further information can be found below.

Financial Services Skills Council
51 Gresham Street
Tel: 020 7216 7366

Institute of Credit Management
The Water Mill
Station Road
South Luffenham
LE15 8NB
Tel: 01780 722900

Facts and Stats:

  • Peter the Great taxed people for growing beards
  • The word ''dollar'' has its origins in the Roman Empire
  • Credit was first used in Assyria, Babylon and Egypt over 3,000 years ago, but the first credit card did not appear until 1951, when Diners Club launched the first ''plastic money''

Courses to help you become a Credit Manager