The Credit Controller role: What does a Credit Controller do?
Assessing Creditworthiness
A Credit Controller are responsible for evaluating the creditworthiness of a potential or existing customer.
They analyse data from sources such as credit reports, company accounts and past payment history, and use this to determine appropriate limits, control measures and payment terms. Credit controllers will make recommendations based on their findings.
Credit Policies
How does a Credit Controller know what their credit limits and payment terms are? All of this should be within a documented credit policy that helps them to set credit limits, payment terms and credit periods to ensure that they maintain the balance between granting credit and reducing potential financial risks. The credit policy is an important document that supports the overall business strategy, and the credit control team will be responsible for implementation, adherence and regular review.
Monitoring and Reporting
Given the breadth of topics the credit control team are responsible for it’ll come as no surprise that the role is not static. Customer data and payment performance evolve constantly which means a close eye needs to be kept on all the variables. Being able to identify, interpret and communicate any warning signs allows the Credit department to make informed decisions regarding credit extensions, risk management and debt recovery strategies.
Collections and Debt Recovery
When there is an instance of late or non-payment, Credit Controllers are responsible for pursuing debt recovery actions. Remember our earlier CICM blog about the importance of the human touch? In the collections and recovery part of the credit lifecycle particularly, you can see how that comes into play.
There isn’t a one size fits all approach. Each situation requires a different approach, which is one of the reasons why the role is so interesting.
Looking for a Job in Credit Control?
If you think this is the sort of career you’d like to consider, we have plenty of resources to help you in our Career Hub. And CICM’s premium partnership with Hays means you can find a Credit Control job via the Hays Website.
What makes Chartered Institute of Credit Management Members different from the non-member Credit Control crowd?
CICM Members are equipped with knowledge, skills and behaviours that are represented in the CICM Professional Standards.
Members of the institute strive towards best practices, innovate the Credit Management and Collections industry and tackle tasks with a gold-standard approach. They persist with their professional development, stay up to date with the latest updates and trends and are constantly in synchronisation with other businesses and the sharing of knowledge via podcasts, webinars and more.
If you believe you’re a cut above the rest, we’d highly recommend exploring the CICM Membership options and enhancing your Credit Management and Collections Career.