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 a Credit/Collections Manager with 3-6 years of experience in Canada, your main responsibilities include:

• Oversee the credit and collections process, ensuring timely and accurate invoicing, payment collection, and credit risk assessment. Manage the end-to-end credit and collections process, from invoicing to payment collection, to maintain consistent cash flow.
• Develop and implement credit policies and procedures to mitigate credit risk and optimize collections. Create and enforce credit policies and procedures to minimize credit risk and maximize collections efficiency.
• Monitor and analyze customer credit profiles, payment patterns, and aging reports to identify potential credit issues and take appropriate actions. Continuously monitor customer credit profiles, payment trends, and aging reports to proactively address potential credit issues.
• Collaborate with cross-functional teams, such as sales and finance, to resolve customer disputes, negotiate payment terms, and ensure timely resolution.

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 ensuring effective credit management and collections processes. For professionals with 3-6 years of experience in Canada, several alternative roles are worth considering. Here are four options to explore:

• Risk Analyst: A position focused on assessing and mitigating financial risks, analyzing creditworthiness, and developing risk management strategies.
• Accounts Receivable Supervisor: A role that involves overseeing the invoicing and collections process, managing customer accounts, and resolving payment discrepancies.
• Financial Services Consultant: A position that offers financial advice, guidance, and solutions to clients, helping them manage their credit and collections effectively.
• Credit Underwriter: A role focused on evaluating credit applications, determining creditworthiness, and establishing appropriate credit limits for customers.

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.