Credit / Collections Manager

A credit/collections manager is responsible for the direction and coordination of credit and collections procedures, policies, and operations. They manage the daily accounts receivables to ensure customer compliance, as well as follow up with issues or complaints from customers.The credit/collections manager must provide support to general managers and accounts managers. They direct and supervise credit evaluations, cash applications, collections, and placement of accounts. It is the credit/collections manager's job to initiate investigations into credit ratings and ensure all credit checks are completed in a timely fashion. They also establish metrics and ensure they are being followed by the team. They develop reports and host daily or weekly meetings to set goals for the team and the company. They must assess performance of their team and either provide or facilitate training for staff.Credit/collections managers are required to have a high school diploma or equivalent. Many companies also require a bachelor’s degree in accounting, finance, or business administration. Credit/collections managers also need to have great problem-solving, communications, and analytical skills. These managers may work a variety of hours depending on the needs of their company. Some companies may require travel for meetings and training as well.

As an experienced Credit/Collections Manager in Canada, your primary responsibilities include:

• Oversee credit and collections activities, ensuring adherence to company policies and industry regulations. Monitor and evaluate creditworthiness of customers and establish credit limits. Implement effective collection strategies to minimize outstanding debts.
• Develop and maintain relationships with customers, addressing inquiries, resolving disputes, and negotiating payment terms. Collaborate with sales and customer service teams to ensure timely resolution of customer issues. Negotiate payment plans and settlements with delinquent customers.
• Analyze credit data and financial statements to assess risk and make informed credit decisions. Conduct credit investigations and recommend credit terms for new and existing customers. Review and update credit policies and procedures to mitigate credit risk.
• Prepare accurate reports on credit and collections activities, including aging analyses and bad debt reserves.

For a Credit / Collections Manager, the following qualifications are required:

• In-depth knowledge of credit management principles and practices to analyze customer creditworthiness, set credit limits, and establish collection strategies.
• Strong negotiation skills to interact with customers and resolve payment issues, while maintaining customer relationships and ensuring timely collections.
• Excellent problem-solving abilities to identify and address underlying causes of delinquent accounts, implementing effective solutions to improve cash flow and reduce bad debt.
• Proficient in financial analysis and credit risk assessment to assess accounts, make credit decisions, and provide recommendations for credit policies and procedures.

The role of Credit/Collections Manager is crucial in maintaining effective credit operations and managing collections for a company. For professionals with 9+ years of experience in Canada, here are four alternative roles to consider:

• Senior Risk Analyst: A position that involves assessing and mitigating financial risks, analyzing credit portfolios, and developing risk management strategies.
• Financial Planning and Analysis Manager: A role focused on financial forecasting, budgeting, and providing insights to support business planning and decision-making.
• Revenue Operations Manager: A position that oversees the end-to-end revenue cycle, including billing, invoicing, and revenue recognition, to optimize cash flow and revenue generation.
• Compliance Manager: A role that ensures adherence to regulatory requirements, internal policies, and industry standards, mitigating legal and financial risks for the organization.

The role of a Credit / Collections Manager is expected to experience steady growth in the Canadian market. According to a 10-year analysis, there is an upward trend in the demand for professionals in this role. The increasing complexity of credit operations and the need for efficient collections processes contribute to this growth. With the expanding economy and evolving financial landscape, the employment opportunities for Credit / Collections Managers are projected to remain favorable in the future.