The many hats of a credit professional

When most people think of a credit professional, they picture someone focused on collecting payments and monitoring customer balances or credit scores. In reality, the job extends far beyond credit and collections. From negotiating terms and managing customer relationships to training and developing their teams, credit professionals juggle many responsibilities. The higher their position, the more hats they wear. 

Why it matters: The multi-faceted nature of the credit professional makes them an asset to the organization, facilitating communication, improving efficiency and mitigating risk. 

Salesperson 

Across almost every company, the credit team partners closely with the sales team to confidently extend credit and maintain customer relationships. While sales focuses on closing deals, credit works to manage risk, ensuring customers are financially reliable and contract terms are sound. This results in credit personnel taking on sales duties. 

“Instead of telling sales, ‘No, you shouldn’t do business with them because they have terrible credit,’ I now provide options: they can get a loan through a bank, we can offer financing or they can pay cash in advance,” said Abby Coatie, credit manager at BOMAG Americas, Inc. (Ridgeway, SC). “What I’ve found from this is that there’s a mutual respect. They’re willing to step in and help me now because I supported them from the beginning.” 

Finance professional 

At the heart of a credit practitioner’s job is the crucial task of minimizing risk, done by carefully assessing a customer’s creditworthiness. This means diving deep into financial statements and documents to uncover the full picture before decisions are made. “Historically, financing decisions were a collaboration between the CFO, sales and credit, but when our CFO left, I had to take on their responsibilities,” said Coatie. “A few months later, and I was attending sales meetings with our VP of sales and the company president, helping to plan what kind of rates we should offer to end users, and how we could use financing to drive more sales. That was something I never imagined being a part of.” 

Customer service 

Credit managers are tasked with maintaining positive customer relationships while protecting the company’s financial interests. They are consistently handling customer-facing tasks such as resolving billing disputes, explaining credit terms and managing payment plans. “When I first stepped into this position, I really expected my main focus to be on risk assessment, but I found that building direct relationships with our customers was just as important,” said Daniela Headley, senior credit manager at Fender Musical Instruments Corporation (Scottsdale, AZ). “Maintaining excellent customer service while protecting financial health has allowed me to provide stronger support to my team and to our customers.”  

Human resources 

Just like any critical function in a company, the credit department thrives on clear structure, consistent leadership and a focus on team development. Like a human resource (HR) representative, credit leaders often handle functions such as hiring, training and mentoring the team members of the credit department.  

In addition, credit managers evaluate team performance, resolve internal conflicts and help foster a productive and collaborative work environment. For example, when a new credit analyst struggled to meet collection goals, the credit executive provided one-on-one coaching, paired the credit analyst with a senior team member for mentoring and adjusted performance expectations to support growth, ultimately improving both morale and results. 

Project manager 

Whether they’re implementing new software or training new staff, credit specialists are often managing multiple projects and people simultaneously. This task parallels that of a project manager, the practice of applying specific knowledge, skills, tools and techniques to a project’s activity to achieve its goals within a specific timeframe and budget.  

“Turning an idea into a product takes a whole different skill set,” said Krissy Aeschbacher, credit analyst at Maverik Country Stores, Inc. (Salt Lake City, UT). “Being involved in project management has helped me understand the inner-workings of what goes into something as simple as choosing which third-party collection agency to use or which processes to automate.” 

Many hats = One powerhouse 

Credit professionals who handle multiple responsibilities gain a deeper understanding of their own role and their company as a whole. This drives cohesion and collaboration across departments. “My training in project management and process improvement deepened my knowledge of the organization as a whole, and it gave me a better understanding of how different departments affect one another,” said Wade Rynning, CBF, credit supervisor at Joseph T Ryerson & Son, Inc. (Coon Rapids, MN). “In the process, I learned how to better manage my time. I used the tools I had available, such as Outlook or Teams, or just setting up in-person meetings in a conference room with all the key stakeholders.” 

This deeper awareness can help credit professionals advocate for themselves and gain greater influence in business decisions. “Wearing multiple hats has helped me see the big picture, which is really key in being able to efficiently manage a credit department,” said Headley. “By understanding the goals and the challenges of sales, operations, information technology (IT), HR and customer service, I’m able to provide sufficient feedback and align our credit practices with broader business objectives.”  

When one job becomes too many 

Despite the benefits, taking on various functions can get overwhelming—even for the most experienced practitioner. Credit professionals who aren’t careful can get caught up and may lose sight of their core responsibilities. “Playing the middle man between my accounting director and the developers of our programs, like engineers, business analysts and data managers as well as our third-party vendors, can make communication a challenge,” said Aeschbacher. “The key is staying on top of your communication and making a list of your priorities to keep you and your team on track.” 

As you move into more senior positions, expectations naturally increase. However, taking on more than you can handle will make you less efficient, disrupting the workflow of your department and other areas within the company. “I learned that I can’t come in guns blazing like, ‘I want to change this, this and this’,” said Coatie. “Even if the ideas are good and the intentions are right, the reality is—not everyone is ready for so much change in such a short amount of time. So, I started to ask myself, what’s the most important thing right now? Then, I’d follow through on that project.” 

Taking the time to master each function, rather than trying to do everything at once, will help you learn more effectively and adapt more easily. “Take advantage of the opportunities that come your way, but be patient,” Rynning said. “Try not to force things, and learn as much as you can. NACM’s Graduate School of Credit and Financial Management (GSCFM), for example, is a great place to learn about responsibilities that coincide with credit management, such as negotiation and leadership.” 

The bottom line: The far-reaching role of the credit professional has the power to influence nearly every corner of a business—serving as a true catalyst for growth. But with that influence comes responsibility: balancing opportunity and risk through structure, preparation and grace.