Tips for hiring new credit managers

Credit professionals in the B2B industry have a wide range of responsibilities in their role. Whether you are a credit analyst, credit manager, risk analyst, or any synonymous title to those listed—there are a few aspects that all professionals in credit have in common: assessing creditworthiness, mitigating risk and optimizing company sales.

Why it matters: Finding the right job is important for both the jobseeker and employer. Typically, job seekers want to join a company that will use their skills to the fullest while also being able to receive benefits (such as PTO, insurance and more). But what are some of the key qualities credit managers look for when hiring a potential candidate?

By the numbers: According to a recent eNews poll, 45% of credit professionals look for a candidate’s willingness to learn, while 40% said prior credit experience, 10% said emotional intelligence and 5% said a college degree.

Yes, but: Let’s take it back a few steps. The first and most important step from a hiring perspective is figuring out the right questions to ask. It is crucial to pinpoint what the role is and who will fit the best—and there is no better way to find out than by gauging the candidate’s experience and decision-making process. Here are some examples of questions to ask:

• How do you weigh relationship building with your internal (sales and operations team) and external customers?
• How do you determine credit limits and terms, if they aren’t standard, during the credit approval process?
• Provide an example of a time you had to make an immediate, yet major, company decision concerning credit. Also include the outcome of that decision.
• What credit reporting systems are you familiar with?
• Are you experienced in making business to business collection calls?

What they’re saying: Some credit professionals will ask softer questions after the technical ones. “After getting to know the potential candidate a bit more and learning about their experience, I like to ask ‘why should I hire you?’ or ‘what can you bring my organization that you believe is missing?,’” said Brian Diggs, director of credit at Power & Telephone Supply Company (Piperton, TN). “This gives me insight on how they view themselves in our company. I like to hear a healthy amount of confidence, without a know-it-all attitude.”

It is also essential to pinpoint the ideal traits of the role of a credit manager. Though this can differ from company to company, it ties into the bigger picture of finding the perfect fit. Some general examples of these traits can include:

• Financial literacy and analytical skills
• A strong appetite for learning
• Time management and comprehension skills
• Great communicators (people who like talking to people)
• Strong negotiation abilities

Different credit managers prioritize different skills in new hires. For example, the shift in attitude towards candidates who obtain a college degree versus those who do not has leveled the playing field. 10-15 years ago, a Bachelor’s degree was a confirmed ticket for success. Degrees now show employers you can complete long-term projects while you pursue your passion.

“When I go on to hire someone eventually, I’d want to see a college degree,” said Brittany Yvon, CBA, CICP, credit manager at OMG, Inc. (Agawam, MA). “A college degree mattered for me and my position, but it doesn’t have to be solely required to get hired. One of the benefits of college is the opportunity to join organizations and network and talk to people. There’s value in the community aspect and those skills can be translated into the work world.”

As the value of college degrees welters, credentials through certifications have exploded. Many credit managers will take a candidate who has a certification such as the Certified Business Fellow (CBF) or Credit Business Associate (CBA) over a candidate who has their Bachelor’s degree in an unrelated field. Credit management is not a specific degree; however, certifications are directly created for the field specifically.

A candidate’s willingness to learn is a skill that cannot be taught. Wanting to self-improve is an intrinsic characteristic that is valuable in the credit world especially because the role of a credit manager is never black-and-white. It takes skill knowing how to adapt and wanting to become multifaceted within your own role.

“I go in with a mindset that I will learn something new every day and I encourage that amongst my team,” said Nicole Butler, credit manager at Shakespeare Company LLC (Columbia, SC). “With learning, there is room to build relationships and pinpoint value-added tasks. I pay close attention to the potential candidate’s willingness in admitting their strengths and lack thereof, while being open to share those strengths with the team and willing to learn and build in areas where needed.”

Prior credit experience is a given for most credit managers because it is the financial heartbeat of a company. Being trained on the basics comes with entry-level, junior and senior experience—all needed for a management role. For example, some credit managers will specifically ask the portfolio size dollar amount the potential hire has dealt with previously. If the potential hire has only dealt with $100,000 accounts instead of multimillion dollar accounts, it may not be the right match for a company that only deals with Fortune 500 accounts.

“Experience is most important in this profession,” Butler said. “Experience encourages credit-minded decision-making skills. A lot of the day-to-day work involves supporting or making a credit decision that can affect all areas within the company. I also must consider if they will fit with the culture of the company department.”

Company culture is another key component in finding the right hire. Does the candidate work well in fast-paced environments? Do they have an extensive record of being able to multitask? Can they communicate clearly? Keeping the company’s values and culture in mind when interviewing a candidate can save time and investment. Joe Lange, CCE, ICCE, CCRA, senior credit manager at Brenntag North America, Inc. (Wauwatosa, WI), said emotional intelligence is the number one aspect that goes into company culture.

“You need to be able to develop the people you work with and give them your all through coaching them and being a mentor for all different personality types,” Lange said. “It takes a certain degree of emotional intelligence to be able to do that and realize that each of your people reacts and learns differently. As a manager, you need to be able to mold your training and mentoring to their personality type, not to your own personality type. I can teach someone how to be a good collector, or I can teach them how to be a good analyst, but you have to have those soft skills in front of you to be able to do that.”

The bottom line: The bottom line is that hiring in the credit profession requires a balance of technical skills, experience and personal attributes such as willingness to learn, adaptability and emotional intelligence, along with an alignment with company culture.