Working Capital Credit Manager: Roles, Responsibilities & Salary
Out of many lucrative jobs in banking and finance, credit manager is one of the most popular and demanding ones.
This post will walk you through the most essential aspects of a Working Capital Credit Manager, their roles and responsibilities, salary, and much more.
What is a Working Capital Credit Manager?
Credit managers Working Capital are responsible for managing the credit-granting process of a business. Their role is to maximize the sales of the company and decrease the loss of bad debt by maintaining the company's credit policy. They do this by evaluating the creditworthiness of new customers and by conducting periodic reviews of existing customers.
Roles and Responsibilities
A credit manager has to monitor and manage the entire credit-granting process. This includes consistent implementation of credit policies, periodic reviews of existing customer's creditworthiness, and analyzing the creditworthiness of new clients. The goal of the credit manager is to maximize the combination of sales from the company and bad debt loss.
The most important roles and responsibilities of a credit manager are mentioned below:
Analyzing: Evaluating and analyzing the creditworthiness of potential customers is one of the most duty of a credit manager.
Building Models: Working capital Credit managers are responsible for creating credit scoring models for risk assessments.
Making Decisions: A credit manager has to make decisions like approving and rejecting loans based on available data.
Configuration: Calculating and setting loan interest rates and other financial essentials are done by a working capital credit manager.
Managing Clients: Management of clients with proper communication and presentation of offers after evaluating the client's portfolio.
Negotiation: The Credit Manager is responsible for negotiating and discussing the terms of the loan with new clients.
Monitoring: A Working Capital Credit Manager's task is to ensure all loans and lending procedures comply with regulations. Monitor trends in the industry that could impact the organization's ability to scale its business with opportunities for financial growth by offering products and services.
Maintaining Records: The records of all company loans are maintained and managed by credit managers. It involves the maintenance of records for prospective clients as well as existing customers.
Handling: Credit managers monitor and handle loan payments and bad debts. It can include monitoring all company loans and customer's financial information.
Updation: It is Working Capital Credit Manager's duty to review and update the company’s credit policy. And stay up to date on changes in laws and regulations in the banking and finance sector.
Learn about
Working Capital Credit Analyst in case you're looking to know more about them.
Skills Needed To Become Credit Manager - Working Capital
In order to become an advanced Credit Manager, one needs to possess essential skills. Some of the crucial skills needed for a Credit manager are as follows:
Communication Skills: It is crucial to have excellent communication skills to communicate with customers and offer them relevant offers after the analysis of their creditworthiness.
Analytical Skills: These skills are required to analyze the customer's financial information for risk assessment to calculate the degree of risk involved in lending money to the client or customer.
Mathematical Skills: Advanced mathematical skills are required for Credit Managers because they need to perform complex calculations while assessing customer's information to evaluate risk.
Computer Skills: Some computer skills in excel and other financial software are also needed for a Credit Manager to store and manage a large amount of customer data and information.
Negotiation Skills: Focusing on people and customers with a real passion for working with both internal and external customers and coming up with solutions that make everyone happy without harming the company's reputation requires a skilled negotiator.
Risk management: Management of risk is the method that involves identifying, evaluating, and managing risks for an organization. It is crucial to managing risks since they could cause negative consequences, including financial loss as well as damage to reputation or legal obligations.
Credit assessment: The credit assessment process determines if a prospective borrower can repay the loan. The lenders use credit assessments to decide whether to grant loans to the borrower and the terms they will offer. Credit assessments can also assist lenders in reducing financial risk by identifying clients more likely to fail on loans.
Portfolio management: It involves making and managing investments to meet a particular financial goal. Portfolio Management involves setting goals for investment, analyzing various investments, and monitoring and balancing the portfolio when needed.
A credit manager must have this skill to handle the client's portfolio for loans and allocate funds. Credit Managers can make informed decisions that aid the portfolio in reaching its objectives.
Financial modeling: The process of financial modeling refers to a method that uses historical data to understand a financial portfolio. The model is used to predict the future of financial outcomes including profitability, or the possibility of loss.
Financial modeling is frequently used by businesses to make the right decisions regarding pricing, investments, and other financial decision-making.
You can also learn about
credit analyst interview questions here.
What to Include in Resume for a Credit Manager Job
The candidate should include their work experience and skills properly in the resume to get shortlisted. To highlight your skills as a credit manager while writing your resume, be sure to include work experience in managing credit and the capacity to evaluate financial data and risk assessment. Also, one should include any relevant education or training received in the area of credit management.
Requirements and Qualifications
Credit Managers Working Capital need to have some qualifications, which are as follows:
- The candidate must have a Bachelor’s degree in accounting, business administration, finance, or a similar field from any recognized university in India.
- A person should have proven work experience as a credit manager.
- Advanced knowledge of accounting and other software.
- Good understanding of lending procedures.
Salary of a Credit Manager - Working Capital
Credit Manager Working Capital salary in India ranges between ₹ 8.0 Lakhs to ₹ 25.0 Lakhs. Salary estimates are based on 9.5k salaries received from Credit Managers and usually depend upon the experience of the candidate.
Conclusion
This is all about a Credit Manager Working Capital, their roles and responsibilities, skills, and more. It is one of the most demanding jobs in the banking and finance sectors, with a lot of growth opportunities in the future. Anyone can go for it who is looking for a job with high payouts, job security along with other benefits and perks.
