Credit managers are responsible for taking decisions related to credit limits, risk levels and terms of payment and manage people in the credit department. They manage the credit terms and maintain cash flows and thus reduce bad debts and expenses. They monitor the receivables and enforce the credit terms. Sometimes they have to take legal and recovery actions. Generally they evaluate clients’ financial information to find out the credit-worthiness. They broadly deal with either commercial credit and consumer’s credit.
If the client is an individual then the decisions are based on bank statements, salary statements or asset information. If the client is an organization then the decisions are based on financial information from various sources like balance sheets, news reports, etc. The assessment of risk is made and then the credit is given/ denied to the client. Credit managers also manage other team members in the credit department. In smaller companies they also carry out accounting and administrative work.