Credit and Collections Manager

Job Summary

The Credit and Collections Manager is responsible for the strategic leadership, governance, and overall management of the organization's credit risk, accounts receivable, and collections functions. This role ensures the effective implementation of credit policies, collection strategies, risk management frameworks, and operational controls that support business growth while safeguarding the company's financial interests.

The position is accountable for evaluating customer creditworthiness, managing the overall credit portfolio, establishing appropriate credit limits and payment terms, and overseeing collection and recovery activities to optimize cash flow, reduce delinquency levels, and minimize bad debt exposure. The Credit and Collections Manager develops and implements proactive credit and collection strategies, monitors portfolio performance, and drives initiatives that improve collection efficiency, customer payment behavior, and working capital management.

Working closely with Sales, Finance, Operations, Legal, and other key stakeholders, the role serves as a strategic business partner by providing insights and recommendations on credit risk exposure, customer payment trends, collection performance, and financial risk mitigation. In addition, the position leads departmental budgeting, process improvement initiatives, technology optimization, fraud prevention programs, and team development efforts to ensure the Credit and Collections function operates efficiently and effectively in support of business objectives.

Key Responsibilities

Credit Risk Management

• Develop, implement, and continuously improve the company's credit management policies, procedures, and risk assessment framework to ensure sound credit decisions and minimize exposure to bad debt.
• Evaluate and approve customer credit applications, credit limits, payment terms, and account reviews based on established risk parameters.
• Conduct periodic reviews of customer creditworthiness using financial statements, payment histories, credit bureau reports, and other relevant information.
• Establish risk-based credit controls and monitoring mechanisms to proactively identify potential credit concerns.
• Balance the need to support revenue growth with prudent credit management practices and risk mitigation strategies.
• Monitor economic conditions, industry developments, and market trends that may impact customer payment behavior and overall credit exposure.
• Oversee the management of the company's credit portfolio and recommend actions to mitigate financial risk.

Collections and Recovery Management

• Develop and implement collection strategies designed to improve collection efficiency, reduce delinquency levels, and maximize recovery rates.
• Establish collection priorities and account segmentation methodologies based on account aging, outstanding balances, payment history, and risk profiles.
• Lead negotiations involving payment arrangements, restructuring agreements, settlements, and account resolutions.
• Establish authority limits and approval guidelines for settlements, payment plans, account restructuring, and recovery activities.
• Ensure timely escalation and resolution of high-risk, disputed, and delinquent accounts.
• Monitor collection performance and implement corrective actions to improve overall recovery effectiveness.
• Review aging reports, collection metrics, and portfolio performance indicators to identify trends and opportunities for improvement.
• Recommend write-offs and legal recovery actions when necessary and in accordance with company policies.

Budget Management and Financial Planning

• Develop, manage, and oversee the annual operating budget of the Credit and Collections Department.
• Allocate resources for manpower, training, technology investments, process improvement initiatives, and other departmental requirements.
• Monitor departmental expenditures and ensure efficient utilization of resources.
• Prepare and present management reports on collection performance, accounts receivable aging, bad debt trends, portfolio exposure, and departmental performance.
• Support cash flow optimization and working capital improvement initiatives through effective receivables management.

Process Improvement and Operational Excellence

• Continuously evaluate credit and collection processes to identify opportunities for increased efficiency, accuracy, and effectiveness.
• Lead initiatives to streamline workflows, strengthen internal controls, and improve customer account management.
• Develop and monitor key performance indicators (KPIs) to measure operational performance and drive continuous improvement.
• Collaborate with cross-functional teams to address process gaps and improve service delivery.
• Ensure that credit and collection activities are performed consistently and in accordance with established policies and procedures.

Technology and Systems Management

• Lead the implementation, enhancement, and optimization of credit and collections technologies and systems.
• Ensure effective utilization of ERP platforms, collection systems, reporting tools, and analytics solutions.
• Evaluate and recommend technology solutions that improve operational efficiency and decision-making.
• Ensure the integrity, security, and confidentiality of customer and financial information.
• Partner with Information Technology teams to support system upgrades, integrations, and automation projects.

Fraud Prevention, Compliance, and Governance

• Develop and implement controls designed to identify, prevent, and mitigate fraudulent activities, including identity theft, fraudulent credit applications, and account manipulation.
• Ensure compliance with company policies, regulatory requirements, and industry standards related to credit and collection activities.
• Maintain effective internal control procedures to safeguard company assets and financial information.
• Monitor legal and regulatory developments that may impact credit management and collection practices.
• Coordinate with legal counsel regarding collection disputes, litigation matters, and recovery proceedings.

Stakeholder Management

Internal Stakeholders

• Maintain close collaboration with Sales teams to support business growth while managing credit risk effectively.
• Coordinate with Finance, Accounting, Operations, Customer Service, and Business Process teams to improve efficiency and resolve operational challenges affecting credit and collections performance.
• Provide management with insights and recommendations regarding portfolio risk, customer payment trends, and collection performance.
• Support business planning and decision-making through accurate reporting and risk analysis.

External Stakeholders

• Maintain professional relationships with customers regarding credit arrangements, payment concerns, and account resolutions.
• Coordinate with credit bureaus to ensure the accuracy of customer credit information and reporting.
• Manage relationships with third-party collection agencies, external consultants, legal counsel, and recovery service providers.
• Engage industry experts and advisors to identify best practices and benchmarking opportunities.

Leadership and People Management

• Provide overall leadership, direction, and management of the Credit and Collections team.
• Directly supervise Credit Supervisors, Collection Supervisors, Officers, and support personnel.
• Establish performance objectives, monitor results, and conduct regular performance evaluations.
• Coach, mentor, and develop team members to enhance capabilities and support career growth.
• Ensure adequate staffing levels and effective allocation of resources.
• Foster a culture of accountability, collaboration, compliance, and continuous improvement.

Qualifications

Education

• Bachelor's Degree in Finance, Accounting, Business Administration, Economics, or a related field.

Experience

• Minimum of 5-7 years of progressive experience in Credit and Collections, Accounts Receivable, Credit Risk Management, or related functions.
• At least 3 years of managerial or supervisory experience leading credit and collections teams.
• Proven experience in developing and implementing credit policies, collection strategies, and risk management initiatives.
• Experience in budgeting, performance management, process improvement, and stakeholder management.

Knowledge and Skills

• Strong understanding of credit evaluation, financial analysis, collections management, and accounts receivable processes.
• Knowledge of legal recovery procedures, debt collection regulations, and credit bureau practices.
• Advanced Microsoft Excel skills and proficiency in reporting and analytics tools.
• Strong analytical, problem-solving, negotiation, and decision-making capabilities.
• Excellent written and verbal communication skills.
• High level of integrity, professionalism, and business ethics.

Other Requirements

• Ability to drive a motorcycle or automobile with a valid driver's license.