WHAT DOES A CREDIT SPECIALIST DO?

Published: August 29, 2024 - The Credit Specialist oversees the verification process for all renters, ensuring accuracy and compliance with state regulations. Manages the credit report pull process and collaborates closely with the Director of Credit to guarantee thorough credit reviews. Utilizes various tools and programs to analyze credit data, prepare onboarding correspondence, and process payments, effectively minimizing risk and potential loss to the company.

A Review of Professional Skills and Functions for Credit Specialist

1. Credit Specialist Duties

  • Delinquent Account Review: Review files to select delinquent accounts for collection efforts.
  • Follow-Up Calls: Conduct follow-up calls as necessary to collect past due outstanding invoices.
  • Risk Analysis: Conduct financial risk analysis to determine and monitor account credit risk within the assigned portfolio.
  • Team Collaboration: Work closely with customers, sales, finance, and customer service to keep the team updated on the status of the respective customer portfolio.
  • Credit Risk Evaluation: Evaluate customer records and recommend actions to be taken for credit risk accounts.
  • Credit Information Exchange: Confer with representatives of credit associations and other businesses to exchange information concerning credit ratings.
  • Credit Rating Development: Assist manager in developing credit ratings and credit lines for the customer base.
  • Database Management: Create and maintain credit databases on activity in the customer account base.
  • System Updates: Updated information in the system every time contact is made with the customer.
  • Credit Hold Resolution: Review and resolve credit-held orders daily.
  • Backup Support: Provide backup coverage for other collection analysts.

2. Credit Specialist Details

  • Merchant Underwriting: Underwriting complex merchant set-ups and/or high exposure applications with advanced understanding of ERM Risk appetite.
  • Merchant Review: Ongoing review of merchants requiring a limit increase or flagged by the Risk process.
  • Credit Risk Assessment: Performing credit risk assessment of existing high-risk and complex merchants.
  • Risk Mitigation: Analyzing personal, business, and financial information, ensuring all risks are mitigated.
  • Client Negotiation: Negotiating directly with clients and internal stakeholders (including senior management) for complex set-ups requiring explanation of specific credit policies and decisions.
  • Risk Account Presentation: Triaging and presenting high-risk accounts amongst other ERM Risk areas.
  • Financial Analysis Support: Assists in the financial analysis, credit underwriting, and approval process.
  • Credit Package Preparation: Prepares credit approval packages, annual reviews, renewals of credit, client credit proposals, and coordination of document preparation and signings.
  • Client Contact and Account Monitoring: In collaboration with the Credit Manager, will assist in contacting clients and monitoring accounts.
  • Excel Management: Maintain and create Excel spreadsheets.
  • International Collaboration: Participation in telephone conferences with other countries

3. Credit Specialist Responsibilities

  • Account Review: Review transactions on customer’s accounts daily.
  • Collections: Collect accounts by sending invoice reminders and communicating with customers.
  • Customer Assistance: Assist customers with account policies and credit terms.
  • Payment Research: Research NSF payments and COD payment issues.
  • Transaction Processing: Process credit card transactions and process lien waivers.
  • Dispute Resolution: Assist in researching customer payment disputes.
  • Tax Research: Research tax-exempt qualifications.
  • Department Flexibility: Learn the basic functions of multiple departments and be able to move between those departments to fill temporary staffing needs and assist with special projects.
  • Quick Decision Making: Interact with different areas to make quick and effective solutions to release credit orders efficiently within 24 hours.
  • Report Preparation: Preparation of daily credit reports.
  • Cross-Department Interaction: Interaction with the areas of sales, fulfillment, operations, collection, logistics, etc.

4. Finance and Credit Specialist Accountabilities

  • Risk Framework Documentation: Articulating and documenting the risk appetite frameworks for relevant entities.
  • Receipt Posting: Perform customer receipts posting and accounts reconciliation.
  • Financial Reporting: Prepare periodic financial reports on AR Balances, customer status reports, and unpaid invoices.
  • Deduction Management: Manage deduction requests from customers in compliance with policies.
  • Customer Inquiry Resolution: Investigate and resolve any irregularities or inquiries coming from customers.
  • Cash Flow Support: Support the preparation of the monthly/quarterly cash flow.
  • Accounting Assistance: Be a valuable assistant to the Commercial Team for any general accounting request related to customers.
  • Discrepancy Monitoring: Monitor and report on accounting discrepancies.
  • SOX Compliance Support: Support the group monthly SOX compliance and prepare documentation.
  • Payment Management: Ensure timely payments by sending reminders, examining customer payment plans, and blocking/releasing shipments in accordance with the Credit Policy.

5. Credit Specialist Functions

  • Financial Analysis: Obtaining and analyzing financial information to grant credit to clients, risk analysis activities.
  • Portfolio Management: Portfolio analysis and determination of maturities to recommend or not revalidate or increase credit lines.
  • Credit Line Management: Credit line maintenance and application.
  • Credit Analysis: Credit management and analysis.
  • Team Collaboration: Support and contact with Sales, AR, and Credit teams.
  • SAP Management: Credit block control & release in SAP system.
  • Financial Statement Analysis: Understand and analyze the company's financial statements.
  • Decision Explanation: Explain the decision made and its justification to the Sales team.
  • Database Maintenance: Capture, update, and maintenance of credit database and SAP.
  • Product Knowledge: Understand financial offerings - be familiar with products, programs, and structures, risk mitigation elements (including collateral, securities, and credit insurance policies).
  • Credit Reporting: Preparation of credit reports, monthly closings.
  • Software Proficiency: Advanced Excel domain, PowerPoint, and SAP management.
  • Portfolio Analysis: Analysis of current and overdue portfolio.

6. Credit Specialist Job Description

  • Billing Management: Ensure that all debtors are billed along with supporting documentation on a daily basis.
  • Customer Queries: Respond to guest and debtor queries in relation to invoices.
  • Invoice Approval: Review and approve TA commission invoices.
  • Client Relationship: Develop rapport with clients to recover debts on time.
  • Payment Reconciliation: Reconcile and allocate credit card and other payments in AR.
  • Month-End Procedures: Ensure month-end procedures are completed in a timely manner.
  • AR Reporting: Prepare AR reports and conduct credit meetings.
  • Transaction Audit: Review and audit all transactions from the previous day.
  • Income Audit: Perform income audit and cashiering-related duties on a daily basis.
  • Factoring Management: Factor accounts receivable invoices, follow up, and repayment of invoices to the factoring company.
  • CRM Monitoring: Monitor CRM for open deduction cases.
  • Dispute Resolution: Communicate with customers and Sales to research and resolve disputes.

7. Credit Specialist Overview

  • Cash Management: Prepare and post cash receipts for Ovention, Inc and Hatco Corporation in the following currencies: CAD, EUR, GBP & HKD.
  • Bank Communication: Communicate as needed with the bank to resolve discrepancies with respect to deposits received.
  • Collections: Collection of past-due accounts assigned by the Credit Manager.
  • Deduction Management: Manage and collect owed deductions.
  • Dispute Resolution: Resolve account disputes, requiring extensive communication with sales, customer service, service, shipping, accounting, and external Hatco customers.
  • Memo Processing: Processing of credit and debit memos.
  • Warranty Credits: Process warranty credits by analyzing whether the customer receives a credit memo on account or check/ACH refund.
  • Material Return: Process Material Return Authorizations by issuing credit per established guidelines.
  • Reporting: Generate statements and reports detailing accounts receivable status to customers and select international sales representatives.
  • Credit Analysis: Perform analysis on the creditworthiness of new accounts, including setup for both international and domestic accounts by following specified criteria.
  • Documentation: Document lease and finance transactions, invoicing finance company for payment.
  • Invoice Follow-Up: Follow up on open invoices.

8. Credit Specialist Details and Accountabilities

  • Debt Management: Monitor, manage, and minimize bad debt for Commercial and Consumer markets.
  • Process Optimization: Optimize credit vendor contracts and internal credit processes.
  • Quantitative Analysis: Perform in-depth quantitative analysis leading to actionable recommendations to the leadership team.
  • Opportunity Identification: Identify opportunities within the team to optimize, enhance, or improve.
  • Cross-Functional Collaboration: Collaborate with Customer Service, Sales, Sales Operations, Pricing, Regulatory, Legal, IT, and Operations teams to support activities such as deposit amount analysis and manage and test credit-related enrollment controls in applicable systems.
  • Reporting: Clearly and concisely report results to diverse audiences, including executive management.
  • Meeting Facilitation: Attend credit risk committee meetings and run weekly conversion opportunity meetings.
  • Credit Analysis: Analyze credit data and financial information of companies that are applying for credit to determine the risk, credit line amount, and payment terms.
  • Delinquency Management: Review and follow up on past due categories for delinquent accounts.
  • Communication: Communicate with the appropriate sales team members regarding pertinent collection issues.
  • Payment Collection: Collect customer payments in accordance with payment due dates.

9. Credit Specialist Tasks

  • Credit Application Review: Review initial credit application for prospective renters
  • Documentation Management: Organize, update, and maintain new customer documentation in a spreadsheet
  • Verification Oversight: Oversee the verification process for all renters, including verifying name and other pertinent information with the state
  • Credit Report Management: Champion the credit report pull process, including running renter credit through third-party credit verification systems
  • Credit Report Analysis: Ensure credit reports are successfully pulled, documented, and analyzed
  • Collaboration: Communicate, collaborate, and work closely with the Director of Credit on a daily basis to ensure all credit reports are sound and thorough reviews are completed
  • Tool and Program Utilization: Interact and use various tools and programs to complete the credit review process, such as Xero and ESAdmin
  • Correspondence Preparation: Prepare correspondence to renters detailing credit limit and onboarding information
  • Customer Onboarding: Onboard customers into the rental platform
  • Risk Management: Identify, evaluate, and determine the correct next steps following potential credit quality issues in order to minimize risk and loss to the company
  • Payment Processing: Processes credit card payments

10. Credit Specialist Roles

  • Credit Resolution: Resolve credits placed in the system, duplicates in the system, refunding payments to patients/insurances.
  • Contract Analysis: Understand contracts, adjustments, patient responsibilities - provide evidence in write-up that experience is present.
  • Refund Processing: Identify what needs to be refunded and why it is being refunded (Collectors skillset could work).
  • Risk Analysis: Analyze customer risk factors, estimate credit limits, collections.
  • Credit Expertise: Research and work as the in-house expert on all currently available credit options applicable to the digital film industry’s major manufacturers and credit entities.
  • Client Facilitation: Work directly with clients, as needed, to facilitate the credit application and approval process.
  • Communication: Communicate with Executive Management, Sales Team, clients, manufacturers, and finance entities.
  • Credit History Review: Review client past credit history and outstanding balances.
  • Data Maintenance: Update and maintain accurate, complete client credit records.
  • Issue Resolution: Resolve billing and customer credit issues.
Relevant Information
What Does A Credit Manager Do?