Credit and Collections Manager Job Description [Updated for 2025]

In the financial world, the role of credit and collections managers is crucial now more than ever.

As economies advance, the demand for proficient individuals who can monitor, manage, and protect our financial resources amplifies.

But what exactly is expected from a credit and collections manager?

Whether you are:

• A job seeker looking to understand the dynamics of this role,
• A hiring manager aiming to define the perfect candidate,
• Or simply curious about the inner workings of credit and collections management,

You’ve come to the right place.

Today, we present a customizable credit and collections manager job description template, crafted for easy posting on job boards or career portals.

Let’s dive right in.

Credit and Collections Manager Duties and Responsibilities

Credit and Collections Managers oversee their organization’s financial collection procedures.

They play a crucial role in ensuring that customers pay their invoices.

They also review and establish credit limits based on the customer’s financial health.

Their duties and responsibilities include:

• Implementing and reviewing the company’s credit and collection policies and procedures
• Setting credit limits for customers based on their financial situations
• Managing and overseeing the collection of outstanding debts from clients and customers
• Conducting credit checks on potential new customers
• Communicating with customers regarding their accounts and any overdue payments
• Resolving customer queries and disputes related to invoices
• Preparing reports on the status of credit and collections for upper management
• Training and supervising credit and collection staff members
• Working closely with the sales team to assess creditworthiness of new clients
• Negotiating repayment plans with customers when necessary
• Ensuring compliance with local, state, and federal laws regarding collections and credit practices

 

Credit and Collections Manager Job Description Template

Job Brief

We are searching for a detail-oriented, analytical Credit and Collections Manager to manage the debts of existing creditors and deciding whether to allow credit to a debtor, ultimately managing all money borrowed or owed to your business.

Credit and Collections Manager responsibilities include setting credit-rating criteria, determining credit ceilings, and managing the collections department.

Our ideal candidates are familiar with the entire credit granting process, from the application to the billing and collection process.

Ultimately, the role of the Credit and Collections Manager is to protect the company’s revenues by setting appropriate credit limits, collecting owed funds, and ensuring all account activity complies with legal and ethical standards.

 

Responsibilities

• Set and monitor credit limits
• Manage and collect debts from company debtors
• Negotiate payment plans when necessary
• Create and implement strategies to increase the number of successful collections on outstanding debt
• Recruit, train, and manage the collections department
• Report on collection activity and accounts receivable status
• Resolve billing and customer credit issues
• Regularly review of processes for improvements and enhancements
• Ensure all operations are in compliance with legal and ethical standards

 

Qualifications

• Proven work experience as a Credit and Collections Manager or similar role
• Knowledge of billing procedures and collection techniques (e.g., skip tracing)
• Familiarity with all relevant legal requirements
• Working knowledge of MS Office and databases
• Excellent communication and negotiation skills
• Ability to work well with a team
• BS degree in Business Administration, Accounting or related field

 

Benefits

• 401(k)
• Health insurance
• Dental insurance
• Retirement plan
• Paid time off
• Professional development opportunities

 

Additional Information

• Job Title: Credit and Collections Manager
• Work Environment: Office setting with options for remote work. Some travel may be required for team meetings or client consultations.
• Reporting Structure: Reports to the Financial Controller or Director of Finance.
• Salary: Salary is based upon candidate experience and qualifications, as well as market and business considerations.
• Pay Range: $70,000 minimum to $110,000 maximum
• Location: [City, State] (specify the location or indicate if remote)
• Employment Type: Full-time
• Equal Opportunity Statement: We are an equal opportunity employer and value diversity at our company. We do not discriminate on the basis of race, religion, color, national origin, gender, sexual orientation, age, marital status, veteran status, or disability status.
• Application Instructions: Please submit your resume and a cover letter outlining your qualifications and experience to [email address or application portal].

 

What Does a Credit and Collections Manager Do?

Credit and Collections Managers typically work for financial institutions, collection agencies or in the credit departments of large companies.

Their main role revolves around managing the credit and collections process of the organization.

They are responsible for ensuring the organization’s credits are managed properly and that overdue payments or bad debts are minimized.

This involves developing credit policies and procedures, setting credit limits, and determining the creditworthiness of potential customers.

Credit and Collections Managers also oversee the collections department and manage the collection of unpaid or overdue bills.

They work closely with their team to devise effective collection strategies, and may sometimes liaise directly with customers to negotiate payment plans.

In addition, they may also be responsible for generating and analyzing financial reports to identify potential credit risks or issues with the company’s collections process.

They play a crucial role in maintaining the financial health of the organization, reducing financial risk and ensuring compliance with relevant financial regulations and laws.

 

Credit and Collections Manager Qualifications and Skills

A proficient Credit and Collections Manager should have the skills and qualifications that align with your job description, such as:

• Strong knowledge of financial and accounting principles to understand and manage credit and collections effectively.
• Excellent analytical skills to evaluate customer creditworthiness and determine credit limits.
• Strong decision-making skills to make informed decisions about credit policies and collections strategies.
• Effective communication skills to interact with customers, team members, and other stakeholders, dealing with issues professionally and tactfully.
• Proficiency in using credit management software and other related business applications to manage and analyze customer accounts and transactions.
• Good negotiation skills to manage and resolve disputes about payments and to create payment plans that work for both the company and the debtor.
• Customer service skills to maintain good relationships with customers while ensuring that they fulfill their payment obligations.
• Strong leadership abilities to manage and motivate the credit and collections team, ensuring they meet their objectives and maintain high standards of work.
• Exceptional organizational skills for maintaining accurate records of payments and debts, and for ensuring that collections are made in a timely manner.

 

Credit and Collections Manager Experience Requirements

A Credit and Collections Manager typically holds a bachelor’s degree in finance, accounting, business administration, or a similar field.

They also need to have at least 5 to 7 years of experience working in credit and collections, ideally in managerial roles.

During these years, they should have gained significant exposure to various aspects of the credit and collections process, including credit risk analysis, debt recovery, and customer service.

Experience in dealing with complex credit situations and managing a team is highly desirable.

Candidates with more than 7 years of experience may have dealt with large credit portfolios and complex debt recovery cases.

They may also have a solid experience in building and managing a successful credit and collections team.

Professional certification, such as Certified Credit Executive (CCE) or Certified Credit and Risk Analyst (CCRA), could also be required or preferred by some employers.

This not only validates their expertise but also their commitment to maintaining professional standards in the industry.

Finally, Credit and Collections Managers should be familiar with credit and collections software and have a strong understanding of relevant laws and regulations.

 

Credit and Collections Manager Education and Training Requirements

A Credit and Collections Manager typically requires a bachelor’s degree in finance, accounting, business management, or a related field.

This role also requires a comprehensive understanding of credit and collections procedures and policies, which can be gained through coursework, internships, or on-the-job training.

Some positions may require a master’s degree in finance or a related field, especially for roles with a strategic or high-level decision-making component.

Certification from the American Collectors Association or the International Association of Credit Portfolio Managers may be beneficial, although not always necessary.

Experience in a credit or collections role, or a similar financial role, is also typically required.

This experience provides practical knowledge of credit and collections operations, risk management, and relevant laws and regulations.

Continuing education and professional development can be important in this role, as it allows the Credit and Collections Manager to keep up with changes in laws, regulations, and best practices.

Leadership and communication skills are also vital, as Credit and Collections Managers often lead teams and liaise with other departments and external stakeholders.

 

Credit and Collections Manager Salary Expectations

A Credit and Collections Manager earns an average salary of $76,000 (USD) per year.

However, this can vary significantly depending on industry experience, education, geographical location, and the specific company they work for.

 

Credit and Collections Manager Job Description FAQs

What skills does a Credit and Collections Manager need?

Credit and Collections Managers should possess exceptional communication and negotiation skills to deal with defaulting clients.

They should have sound financial knowledge and understanding of credit-related laws.

Analytical skills are also important as they analyze financial data to determine the creditworthiness of clients.

They should also possess strong leadership and management skills, as they often oversee a team of collections officers.

 

Do Credit and Collections Managers need a degree?

Most Credit and Collections Managers are required to have a Bachelor’s degree in Finance, Business Administration, or a related field.

Some employers might also prefer candidates with a Master’s degree in Business Administration (MBA).

In addition, a solid background in finance or credit and collections is often needed.

 

What should you look for in a Credit and Collections Manager resume?

When reviewing a resume for the position of Credit and Collections Manager, look for evidence of strong financial, analytical, and management skills.

Prior experience in credit analysis or collections is crucial, and any managerial experience is a plus.

Check for any certifications related to credit management, as these can demonstrate a candidate’s commitment to their career.

 

What qualities make a good Credit and Collections Manager?

A good Credit and Collections Manager is assertive, patient, and has exceptional negotiation skills.

They should be capable of making tough decisions and be comfortable dealing with people in sensitive financial situations.

They need to be organized and detail-oriented, as they often deal with a large number of accounts and must keep accurate records.

Good Credit and Collections Managers are also ethical and able to treat all clients with respect and fairness.

 

Is it difficult to hire a Credit and Collections Manager?

The difficulty in hiring a Credit and Collections Manager can vary depending on the market conditions and the specific qualifications required by your company.

It can be challenging to find candidates who have the required financial background, management experience, and excellent negotiation skills.

Hence, it is important to offer competitive salaries and benefits to attract the best talent.

 

Conclusion

And there you have it.

Today, we’ve dissected what it truly means to be a Credit and Collections Manager.

Surprised?

It’s not just about chasing payments.

It’s about strategically managing financial risks, one transaction at a time.

Armed with our Credit and Collections Manager job description template and real-world examples, you’re ready to move forward.

But why limit yourself?

Venture further with our job description generator. It’s your next step towards creating precise job listings or refining your resume to absolute precision.

Remember:

Every transaction is a piece of a larger puzzle.

Let’s navigate this financial landscape. Together.

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