WHAT DOES A CREDIT AND COLLECTIONS MANAGER DO?

Published: September 10, 2024 - The Credit and Collections Manager oversees daily operations of the credit and collections department, leading a team to enhance transaction security and improve customer payment habits. This position develops and monitors key performance indicators through dashboards, supervises credit application approvals, and prepares financial reports for monthly review. This role manages customer inquiries, resolves credit disputes, maintains documentation, and supports technological upgrades in accounts receivable processes.

A Review of Professional Skills and Functions for Credit and Collections Manager

1. Credit and Collections Manager Duties

  • Credit Risk Management: Manages the investigation of credit risks and establishes guidelines for granting credit to customers.
  • Bad Debt Analysis: Completes bad debt analysis and shares with business unit finance leaders.
  • AR Aging Analysis: Participates in AR aging analysis and reporting activity.
  • Account Management: Handles all levels of accounts from small to more complex and larger accounts.
  • Credit Data Compilation: Participates in the compilation of credit data and review of customer accounts.
  • Credit Policy Review: Periodically reviews the Corporate credit policy and recommends updates to CSC Leadership and the CFO.
  • Staff Development: Supervises and develops staff through timely communications and training.
  • Goal Setting: Establishes goals and objectives for Credit and Collection functions.
  • Performance Measurement: Measures department performance with appropriate metrics.
  • Legal Interaction: Interacts with outside counsel (bonded claim filing, high dollar collection issues, etc.).
  • SOX Compliance: Maintains SOX narratives and assists with internal and external audits.

2. Credit and Collections Manager Details

  • Billing Support: Assists with various billing efforts for master orders and special projects.
  • Tax Documentation: Helps collect tax documentation to assure proper account setup.
  • Credit & Re-bills: Performs all credit and re-bills other than for tax.
  • Transaction Monitoring: Helps monitor incoming ACH and Wire Transfers for pending orders.
  • Remittance Handling: Assists with remittance retrieval and application of cash and credit memos.
  • Financial Close Assistance: Provides assistance with monthly close and financial package.
  • Credit Evaluation: Researches and evaluates customer creditworthiness and approves or denies applications based on company standards and requirements.
  • Credit Policy Development: Develops, reviews, and updates the company’s credit policies and credit scoring models to predict risks.
  • Payment Negotiation: Negotiates payment plans with customers and sets up terms and conditions.
  • Credit Control Management: Maintains accurate records of loans, analyzes the effectiveness of the company’s credit control system, and implements changes to improve profitability and reduce bad debts.
  • Invoice Collection: Ensures customers pay on time and chases any overdue invoices.
  • System Development: Develops the credit control system in collaboration with Sales, Marketing, Finance, and company executives.
  • Debt Collection Improvement: Improves and implements debt collection processes for overdue invoices or payments and initiates legal procedures

3. Credit and Collections Manager Responsibilities

  • Credit and Collections Management: Manages credit and collections initiatives, establishing and implementing procedures to achieve monthly collection goals.
  • Team Supervision: Supervises daily activities and maximizes the efforts of the team in collection efforts and determining creditworthiness of new or existing customers.
  • Issue Analysis: Analyzes and assesses credit and collection issues and determines the course of action for resolution, including reviewing the aging report and pursuing collection of past due amounts.
  • Credit Risk Assessment: Assesses credit risk and determines the extension of credit for new or existing customers.
  • Dispute Resolution: Resolves customer disputes and negotiates settlements with customers on receivable issues.
  • Credit Reporting: Provides robust reporting of Credit analytics to support strategic and day-to-day operations, including preparing regular updates for key stakeholders and senior leadership.
  • Team Development: Coaches and mentors the Credit and Collections team, creating an inclusive and cohesive environment to bring out the best in every team member.
  • Customer Service Coordination: Directs and coordinates customer service activities and follows up on customer short pays or billing disputes.
  • Credit Policy Review: Reviews credit policy and recommends adjustments when delinquent patterns occur.
  • Collections Policy Implementation: Establishes, implements, and monitors collections policy and communicates adjustments following Soligent’s internal procedures, including SOP development.
  • Continuous Improvement: Identifies, documents, and implements opportunities for continuous improvement.
  • Team Oversight: Keeps up to date on the overall activities of the team, identifying problem areas and taking corrective actions.

4. Credit and Collections Manager Job Summary

  • Team Leadership: Led and supported a team of analysts that evaluate customer creditworthiness, monitor accounts receivable balances, and perform necessary collection efforts on aging accounts receivable balances.
  • Credit Review Analysis: Ensured credit reviews incorporate detailed analysis of customer financial statements, ratio analysis, and review of third-party credit-rating sources.
  • Credit Limits and Terms: Ensured the team sets appropriate credit limits and terms of sale for customers.
  • Electronic Funds Transfer: Ensured the team implements electronic funds transfer for new customers and converts hard copy check-paying customers to ACH.
  • Credit Limit Management: Ensured the team cures credit limit infractions timely and properly, mitigates risk, and minimizes bad debt exposure.
  • Security Measures: Ensured the team obtains additional security in the form of L/Cs, personal, parental, and cross-corporate guarantees when necessary.
  • Policy Compliance: Ensured the team is compliant with financial and credit policies of the company.
  • Credit Line Management: Managed credit line and mark-to-market exposures by tracking financial and payment performance for the customer portfolio.
  • Reporting: Created and distributed credit and collection-related reports to senior management.
  • Delinquency Management: Maintained delinquency and bad debt levels to historical standards.
  • Cross-Department Collaboration: Interfaced with the Sales department and other areas of the company to ensure the effectiveness of credit and collection processes, concerns, and issues.
  • Customer Support: Assisted customers in resolving questions, issues, and disputes.
  • Special Projects: Participated in and worked on special projects and continuous improvement initiatives.

5. Credit and Collections Manager Accountabilities

  • Safety Compliance: Comply with Boral Safety Policies.
  • Safety Leadership: Provide safety leadership in promoting and creating a zero-injury safety culture.
  • Credit Policy Implementation: Implement the organization's credit policies to maintain an acceptable level of risk, ensure timely repayments, minimize losses, and economically collect arrears.
  • Credit Application Processing: Process new customer credit applications and verify trade references.
  • Credit Limit Establishment: Establish credit limits for new and existing customers.
  • Credit File Management: Update credit file information on customers in accordance with established policies and procedures.
  • Sales Tax Compliance: Ensure that the company maintains customer documentation to comply with state sales tax laws.
  • Credit Terms Evaluation: Evaluate and review existing customer credit terms and set credit limits that minimize credit risk while aligning with company practices.
  • Credit Risk Management: Ensure company policies, procedures, and internal controls maintain credit risk within established tolerances and that customer accounts are collected in a timely manner.
  • Regulatory Compliance: Responsible for ensuring the company follows state and federal regulations regarding collection practices.
  • Customer Relationship Management: Cultivate relationships with customers regarding credit and account status.
  • Complex Account Management: Manage the organization's most complex, large, or difficult credit accounts to maintain positive customer relations and minimize outstanding debts.
  • Credit File Maintenance: Maintain current customer credit files with new or changing information.

6. Credit and Collections Manager Functions

  • Shipment Approval: Approve all pending shipments for customers on hold.
  • Account Management: Manage past due accounts and proactive collection of accounts.
  • Staff Supervision: Supervise credit and collections staff - invest time in associate development, set goals, monitor performance and ensure staff is well-equipped to meet and/or exceed job expectations.
  • Effective Communication: Communicate effectively and professionally with team members, vendors, and customers.
  • Goal Monitoring: Monitor department goals sustaining achievement, identifying gaps between goals and actual performance and taking corrective action as necessary.
  • Audit Assistance: Assists with audit requests from external and internal audit teams.
  • Commercial Control Building: Build a world-class commercial control function through upskilling capabilities and aligning operations with KC best practices.
  • COSO Support: Support Sales Directors in driving the COSO agenda, including timely completion of self-testing and all other internal control initiatives.
  • Audit Recommendations Implementation: Ensure timely implementation of internal and corporate audit recommendations as well as regular reviews as stipulated by corporate policies.
  • Compliance Assurance: Ensure compliance with local processes, KC policies, and other guidelines related to my line of work, and obtain pre-approvals for exceptions.
  • Control Testing Leadership: Independently lead control testing across sales operations relying on KC internal control guidelines to drive for remediation of control deficiency by influencing a wide range of stakeholders.

7. Credit and Collections Manager Job Description

  • Team Management: Manage activities of direct reports, including delegation of tasks to the team, creating a balanced workload, and proactively adjusting activities to include non-routine tasks and projects that arise in day-to-day business.
  • Team Development: Assess team strengths and weaknesses, implementing mentoring and development programs for each individual team member.
  • Coverage Assurance: Ensure all activities have backup coverage during team member absences.
  • Receivables Management: Ensure receivables are collected within assigned terms of credit and within policy.
  • Audit Management: Actively participate in and manage audit requirements for both internal and external audits.
  • Financial Analysis: Conduct ongoing reviews of customers and in-depth analysis of financial statements to ensure no deterioration in financial strength and creditworthiness, recommending appropriate actions to executive management to mitigate risk.
  • Account Supervision: Supervise team monitoring and follow-up on delinquent accounts as well as execution of necessary account reconciliations and/or approved adjustments timely.
  • Credit Risk Analysis: Prepare detailed credit risk analysis by analyzing financial statements while utilizing credit reporting agencies to develop recommendations and control of terms of credit and limits.
  • Reconciliation and Solutions: Prepare reconciliations on accounts including root cause analysis to develop solutions.
  • Credit Review Management: Manage and document routine credit reviews of existing customers in compliance with the credit and collections policy and procedures.
  • Action Initiation: Initiate action items required as a result of the updated credit risk analysis.
  • Credit Master Data: Establish and maintain credit master data records.

8. Credit and Collections Manager Overview

  • Issue Resolution: Interacts with all divisions to resolve credit and collection issues by navigating clients’ needs and circumstances.
  • Aging Reports Generation: Generates regular aging reports to track and outline delinquent accounts for review by senior management.
  • Delinquent Account Assignment: Identifies and assigns accounts that have been deemed delinquent.
  • Payment Processes: Creates processes and efficiencies for customers to pay invoices.
  • Invoice Monitoring: Monitors employees issuing invoices and tracking payments per company collection parameters.
  • Receivables Oversight: Oversees receivables and ensures cash application.
  • Credit Report Analysis: Analyzes credit reports of new clients and determines the appropriate billing method for new business.
  • Invoice Vouchering: Vouchers monthly, contractual invoices.
  • Expense Account Review: Reviews corporate expense accounts to ensure proper use of company cards and regularly checks for fraudulent activity.
  • Office Interaction: Interacts with office building personnel and management on all relevant office issues.
  • Supply Inventory: Inventories office supplies and orders new supplies.

9. Credit and Collections Manager Details and Accountabilities

  • Collection Strategy Development: Develop and manage effective collection strategies, aiming to decrease DSO and increase cash flow.
  • Metrics Improvement: Establish strategies for continuous improvement of metrics and clarity of reporting.
  • Escalation Management: Serve as the ultimate point of escalation for all past due problem accounts, credit hold decisions, and disputes.
  • Relationship Building: Build relationships and develop report-out cadence with sales and plant management to drive effective dispute resolution and optimize customer focus.
  • Bad Debt Management: Manage bad debt reserve discussions.
  • Aging Report Preparation: Prepare customer aging reports.
  • Inquiry Response: Respond to inquiries from customers, and research/resolve outstanding credit issues.
  • Credit Policy Development: Develop new credit policies and procedures aiming to mitigate risk and/or increase efficiency.
  • A/R Review: Review A/R ledger and hold daily or weekly touchpoints to discuss problem accounts with the team.
  • Credit Correspondence: Write credit correspondence, working with the legal department.
  • A/R Collections Ownership: Own ultimate responsibility for all A/R collections functions.
  • Bond and Lien Management: Maintain bond and lien rights, always ensuring to minimize risk exposure of Meadow Burke.
  • Lien Waiver Approval: Review and approve all lien waiver requests from customers.
  • Analytical Review: Perform analytical review and reporting within accounts receivable.
  • ERP Support: Support ERP and technology upgrade projects related to credit, collections, and A/R.

10. Credit and Collections Manager Tasks

  • Credit Term Determination: Review financial statements and credit reports to determine appropriate credit terms.
  • Cash Collection Management: Manage cash collection efforts including supervision of the collection team.
  • Credit Card Reconciliation: Review credit card reconciliation and manage credit card chargebacks.
  • Cash Application Management: Manage the cash application process.
  • AR Reporting: Prepare monthly AR reports including collection metrics.
  • Bad Debt Analysis: Analyze potential bad debt and make recommendations for write-off.
  • Cash Forecast Assistance: Assist in cash forecast preparation and maintenance.
  • Policy and Strategy Creation: Create policies and strategies that minimize credit and/or operating losses and other risk exposures while supporting initiatives to grow the business.
  • Credit Policy Enhancement: Monitor, enhance, and enforce sound credit policies and procedures.
  • Customer Collection Monitoring: Monitor customer collections and account balances to ensure compliance with payment terms and minimize credit risk.
  • Credit Function Improvement: Develop and implement improvements to the credit and collections functions, including new technology, automation, enhanced processes and procedures, and other resources to improve efficiencies and effectiveness.
  • Sales Trends Monitoring: Monitor and identify emerging business sales trends in order to anticipate and appropriately handle customer credit implications.
  • Risk and Opportunity Balancing: Work with product and sales management to balance sales opportunities with an appropriate risk tolerance, effectively structure credit terms to mitigate risk of loss.
  • KPI Establishment: Establish and track key performance indicators to actively manage and improve credit and cash processes to ensure effective use of resources.
  • Staff Recruitment and Management: Recruit and manage credit and risk staff, providing focus and clarity in establishing individual goals, driving performance management, supporting career development, and rewarding strong performers.

11. Credit and Collections Manager Roles

  • Debt Collection: Requests and pursues payment on delinquent accounts via communication with account holders.
  • Credit Risk Analysis: Analyzes and assesses the creditworthiness of accounts/clients using external credit risk management tools/reports.
  • Dispute Resolution: Researches account disputes and billing discrepancies.
  • Account Reconciliation: Performs account/payment reconciliations.
  • Inquiry Response: Responds to credit inquiries from external and internal clients.
  • Delinquency Identification: Identifies delinquent accounts requiring external collection efforts.
  • Bad Debt Identification: Identifies bad debt or financial exposure.
  • Account Review: Follows established guidelines to review and update account status.
  • Payment Tracking: Maintains a log of payment promises and pertinent account details.
  • Follow-Up Scheduling: Schedules follow-up communication with account holders.
  • Receivables Monitoring: Monitors accounts receivable and cash receipt reports.
  • Customer Issue Resolution: Researches and resolves customer issues in a timely fashion.
  • Procedure Review: Conducts periodic reviews of credit & collection procedures.

12. Credit and Collections Manager Additional Details

  • Collection Processes: Establish consistent collection processes across multiple systems.
  • Performance Management: Determine performance standards, monitor, evaluate staff, and coach on opportunities for improvement.
  • Team Leadership: Ability to lead, train, and manage a team.
  • Credit Analysis: Recommend and establish credit limits based on credit analysis.
  • Communication: Thrives in a fast-paced environment and maintains excellent communication with all departments.
  • Client Payment Management: Manage and develop the client payment relationship, evaluate creditworthiness, ensure timely payment of invoices, and respond to customer issues.
  • Credit Policy Enhancement: Enhance the company's credit policies, develop collection strategies, and establish best practices and proper workflow for the credit and collections team.
  • Process Improvement: Implement sustainable processes with continued improvement in generating working capital and cash flow.
  • Cash Management: Prepare cash forecasting and cash management initiatives around outstanding accounts receivable.
  • Internal Collaboration: Work closely with Client Account Managers, Business Operations Support, Collection Reps, and other internal staff.
  • External Communication: Handle all external communication in a timely manner.
  • Risk Management: Identify high-risk accounts and take necessary action to mitigate losses.
  • Legal Transfers: Identify and transfer accounts to Legal.

13. Credit and Collections Manager Essential Functions

  • Compliance Management: Ensures compliance with Corporate Guidelines.
  • Credit Authorization: Authorizes and approves credit limits, write-offs, and refunds as per established authority.
  • Team Management: Manages the receivables team in the Country and in the Shared Service Center.
  • Performance Development: Develop team members’ performance to provide consistent, high-quality results.
  • Procedure Adherence: Ensures Standard Operating Procedures are current and adhered to by the local and Shared Services team.
  • Collector Assignment: Assigns collectors to customer accounts.
  • Cross-functional Collaboration: Works closely with Sales and Operations for support on collections and to resolve escalations, queries, and disputes.
  • Credit Management: Manages customer credit limits to minimize bad and doubtful debts while meeting commercial needs.
  • Risk Support: Supports business by providing customer creditworthiness information and warning about implied risks.
  • Analytical Management: Effectively manages Credit and Accounts Receivable with analytical variance analysis for Senior Management.
  • Process Improvement: Identifies potential gaps in processes and provides solutions that meet business needs.
  • Efficiency Enhancements: Develops and initiates enhancements and solutions to improve efficiency.
  • Reporting: Provides Weekly and Monthly reporting for management.

14. Credit and Collections Manager Role Purpose

  • Operations Management: Manage daily credit & collections department operations
  • Team Leadership: Lead a team of credit & collections specialists
  • Target Identification: Identifies target accounting to focus on improving payment habits while increasing sales through secure transactions
  • Dashboard Management: Manage and prepare dashboards to monitor key performance indicators
  • Credit Approval Supervision: Supervise approval of credit applications
  • Reporting: Prepare monthly accounts and customer aging reports for the finance department
  • Customer Support: Respond to inquiries from customers, and research/resolve outstanding credit issues
  • Policy Development: Assist in developing new credit policies and procedures
  • Document Management: Maintain credit invoice and supporting documentation files
  • Ledger Review: Review A/R ledger and initiate steps to resolve aged invoices/accounts and customer disputes
  • Credit Correspondence: Write credit correspondence
  • Analytical Reporting: Perform analytical review and reporting within accounts receivable
  • Technology Support: Support ERP and technology upgrade projects related to credit, collections, and A/R

15. Credit and Collections Manager General Responsibilities

  • Credit and Collections Management: Manages the SDGE credit and collections operations, including customer credit establishment processes, office collections operations for open and closed accounts (including both service and merchandise accounts receivable), Meter Revenue Protection function to identify energy theft and diversion and bill and collect appropriate revenue, and Customer Payment Services function that processes payment and banking transactions.
  • Strategic Development: Develop strategies to enhance operations, reduce bad debt expense, and address changing regulatory and legislative requirements, competitive issues, and customer behaviors.
  • Policy and Operational Support: Provides policy direction and operational support to Field Collections and Customer Care personnel in other departments to ensure adherence to credit and collections policies, obtain maximum results from credit establishment, collections and payment arrangements, and resolve customer issues.
  • Regulatory Compliance: Partners with Regulatory Affairs, Legal, Legislative Analysis, and other appropriate departments to ensure compliance with applicable tariffs and statutes and provide input on pending legislation and regulation.
  • Pandemic and Rate Case Analysis: Analyzes and develops strategies related to Pandemic Management and General Rate Case issues and develops formal filings and responses to data requests.
  • Customer Payment and Collection: Responsible for customer payments/collections and limiting uncollectible expenses to authorized levels.
  • Performance and Target Development: Develop service and performance targets to minimize financial losses and ensure that they are met.
  • Budget and Staffing Management: Responsible for department budgets and provides workload and staffing to the field collection budget process.
  • AR Aging Review: Review and maintain the AR aging to identify problematic accounts.
  • Collections Planning: Create collections plans for customers.
  • Customer Payment Acceleration: Work with customers on accelerating payments.
  • Cross-Functional Collaboration: Work cross-functionally with the sales teams on collections.
  • Lien Waiver Experience: Extensive experience with lien waivers.
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