WHAT DOES A CREDIT OFFICER DO?
Published: September 10, 2024 - The Credit Officer oversees accounts receivable allocation and reconciliation, ensuring effective credit and risk management. Focuses on obtaining timely payments from customers, maximizing cash flow, and resolving billing disputes. Works closely with internal teams and external stakeholders to ensure accurate account reconciliations and efficient month-end processes.
A Review of Professional Skills and Functions for Credit Officer
1. Credit Officer Duties
- Credit Underwriting: Seeking credit officer to be part of the credit team responsible for underwriting credit risks for the clients.
- Financial Analysis: Analyze clients’ businesses, their financial statements, and due diligence materials.
- Credit Preparation: Prepare credit papers for new requests and ongoing portfolio monitoring purposes.
- Portfolio Monitoring: Perform ongoing monitoring of clients and information flow associated with the portfolio.
- Team Supervision: Supervise and provide developmental oversight to Analysts.
- Risk Identification: Identify and escalate emerging risks.
- Policy Adherence: Understand and apply internal policy, procedures, and regulatory requirements.
- Document Review: Review various legal documents for relevant credit products.
- Effective Communication: Communicate effectively in constructing arguments to support recommendations to senior officers.
- Deal Participation: Be an active member of deal teams and engage proactively with relationship and product partners.
2. Credit Officer Details
- Accounts Management: Reporting directly to the ANZ Accounts Receivable Team Leader
- Debtor Follow-Up: Responsible for following up with the allocated accounts in the debtors’ ledger
- Team Collaboration: Work alongside a supportive and professional team to provide excellent financial services for both internal and external clients
- Account Reconciliation: Responsible for following up on outstanding accounts for all customers within the ledger
- Sales Coordination: Work in conjunction with the sales teams to ensure credits are raised and credit-held orders are checked and released through ERP systems
- Reconciliations: Prepare reconciliations of Debtor Accounts and adjustment journals
- Month-End Support: Assisting with end of month allocations and the setting up of new customer accounts
- Debt Collection Planning: Overseeing the outstanding debtors and making a plan of action to collect these payments
- Billing Accuracy: Follow up consultants for correct billing information
- Administrative Support: General administration for the business
3. Credit Office Responsibilities
- Debtor Management: Active day-to-day management and control of the debtors’ ledger
- Debt Collection: Debt collection via telephone and email to reduce Days Sales Outstanding figures
- Reminders & Statements: Process and generate reminder letters and monthly statements
- Accounts Receivable: Accounts receivable duties, including EFT and cheque receipting, credit notes, and bad debt write-offs
- Reconciliations: Account reconciliations and investigation of credit collection issues
- Client Liaison: Liaise with internal and external clients and implement solutions and payment arrangements
- Relationship Building: Establishing relationships with partners and clients
- Issue Resolution: Resolving customer queries and issues
- Receivables Feedback: Provide feedback to individual partners with commentary on the status of receivables
- Reporting to CFO: Keep the CFO informed of any debtors’ issues
- Reporting: Assist with weekly and monthly debtors’ reports
- KPI Commitment: Commitment to KPI targets
4. Credit Officer Accountabilities
- Application Review: Review Home Loan credit applications, ensuring they are completed and processed in a timely manner
- Credit Decisioning: Provide high-quality credit decisioning
- Credit Checks: Complete credit checks and verify information
- Customer Follow-Up: Following up with customers for additional supporting documents
- Compliance Checks: Ensuring compliance checks are completed in line with requirements
- Customer Updates: Keep customers updated with the progress of their application
- Loan Approval: Approves or declines loan requests in accordance with the maximum lending authority assigned
- Collaboration: Collaborates with other Credit Officers to provide guidance, oversight, and support for lenders within the assigned region
- Risk Assessment: Assesses credit risk and ensures loan decisions are consistent, fair, and compliant
- Efficiency Promotion: Promotes efficiencies and drives a high level of service
- Policy Resolution: Helps in resolving credit policy issues identified internally by coordinating due diligence efforts with managers
5. Credit Officer Overview
- AR Management: Responsible for all matters pertaining to accounts receivable allocation and reconciliation, which includes credit and risk management
- Payment Collection: Responsible for obtaining timely payments from customers within agreed payment terms, maximizing cash flow, reducing AR outstanding, and resolving billing disputes
- Month-End Activities: Ensuring timely completion of month-end activities, preparation of month-end reports, and performing variance analysis
- Stakeholder Liaison: Liaising with external stakeholders and clients
- Negotiation: Making outbound calls and negotiating terms
- Referral Management: Referring inquiries to the financial hardship team
- Team Collaboration: Work alongside billing and payable teams
- Account Reconciliation: Ensuring account reconciliations are correct before closing off month-end
- Relationship Building: Developing and maintaining strong relationships with both internal and external stakeholders
- Ad Hoc Support: Assist and support the team with other ad hoc accounting tasks as required, such as coding and data entry