Free credit manager job description templates: general, credit and collections, small business, commercial, senior, and AR manager, with FLSA notes. DOCX.
6 free templates by role and setting: general, credit and collections, small business, commercial, senior, and AR manager, with the FLSA and reporting-structure guidance the generic templates skip. Download as DOCX.
A credit manager decides who a company extends credit to, on what terms, and how it collects what it is owed, balancing the pull of sales against the need to protect cash flow. It is a finance role most associated with banks and large companies, but it also shows up in a specific small-business situation: a growing business-to-business distributor or manufacturer that sells on credit and finally needs someone to own receivables.
These six templates cover the role across settings and levels, general, credit and collections, small business, commercial, senior, and AR manager. For a small B2B distributor without an HR department hiring its first credit manager, the small-business and credit-and-collections versions fit best, with the FLSA classification and reporting structure the generic templates skip. For the fundamentals behind any posting, the guide to writing a job description helps, and FirstHR runs the onboarding once you hire.
TL;DR
Six free credit manager job description templates by role and setting: general, credit and collections, small business, commercial, senior, and AR manager. The role owns credit policy, accounts receivable, and collections, and is almost always exempt and salaried. Federal data groups it within financial managers, with a median of $161,700 (May 2024); credit-manager-specific market figures run lower. Download all six as DOCX.
What a Credit Manager Does
A credit manager owns the credit and accounts receivable function: setting credit policy, evaluating customers, deciding terms, managing the receivables portfolio, and overseeing collections. The job balances two goals that pull against each other, supporting sales by extending credit and protecting cash flow by managing the risk that comes with it.
There is no dedicated federal occupation code for the role; the Bureau of Labor Statistics groups credit managers within financial managers, which skews toward banks and larger enterprises where much of the demand sits. What stays constant is the credit-and-receivables mandate; what changes is the setting and the level. A small-business first hire builds the function, a commercial manager assesses B2B customers, a senior manager leads a team. Because the role spans these variants, the six templates on this page are split by role and setting rather than offering one generic version.
Credit Manager Duties and Responsibilities
Credit manager duties group into credit policy and risk, accounts receivable and collections, reporting and analysis, and leadership and coordination. The setting shifts the weighting, but these four categories hold across the role. These are the responsibilities grouped the way the templates use them.
Credit policy and risk
Set, document, and enforce credit policy
Evaluate creditworthiness and assign terms
Review and approve credit applications
AR and collections
Manage the AR portfolio and aging
Oversee collections and past-due accounts
Reduce days sales outstanding and bad debt
Reporting and analysis
Report on AR, DSO, and credit risk
Analyze portfolio exposure and trends
Support cash-flow planning
Leadership and coordination
Manage and develop credit and AR staff
Partner with sales on terms and accounts
Maintain customer relationships
A strong posting picks the responsibilities from each area that match the role and the size of the receivables, and is specific about the reporting line and team. For a structured way to scope any role before posting, the guide to defining job responsibilities walks through the process.
Credit Manager vs Analyst vs AR Manager
Several finance titles get confused with credit manager, and naming the right one is the first decision before posting, because each draws a different candidate.
Role
Core focus
Level
Credit manager
Owns credit policy and decisions
Manager, exempt
Credit analyst
Analyzes credit, recommends limits
Junior, supports the manager
Collections manager
Recovers what is owed
Manager, back-end focus
AR manager
Billing, cash application, collections
Manager, accounting focus
Credit and collections manager
Both credit and collections
Common combined title in SMB
The analyst analyzes and recommends; the credit manager decides and runs the function; the collections and AR managers weight toward the back end and the accounting side. In a small business these often combine into one role, which is why credit and collections manager is such a common title. Decide where the weight of the job sits and post that title.
Which Template Should You Use?
Pick the template by role and setting; the company, portfolio, and pay go in the fields. All six share the same exempt finance-manager skeleton, but the focus differs enough that the matched version reads correctly to candidates. Use this guide to choose.
Credit Manager (General)
Any company selling on credit
The universal version: credit policy, customer creditworthiness, AR management, and collections oversight, with the exempt classification and reporting structure built in.
Credit and Collections Manager
Combined role, common in SMB
The combined version: owning both extending credit and collecting on it, plus leading a collections team. The most common title at smaller companies.
Small Business / First Hire
First dedicated credit hire
The build-it version: for a small B2B distributor or manufacturer hiring its first credit manager to take credit and collections off the owner or bookkeeper and build the function.
Commercial Credit Manager
B2B, wholesale, manufacturing
The commercial version: assessing business-to-business creditworthiness, reviewing financial statements and trade references, and managing a commercial AR portfolio.
Senior Credit Manager
Leads the function and team
The senior version: owning credit strategy, leading a team, overseeing a large portfolio, and partnering with finance leadership on risk and cash flow.
Accounts Receivable Manager
Billing and AR-focused
The AR-focused version: billing, cash application, collections, and reporting, broader on the accounting side than a pure credit role and often closer to a small business's needs.
Match the Template to the Role
Any company selling on credit? Credit Manager (General). Both extending and collecting, with a team? Credit and Collections Manager. A small B2B distributor's first credit hire? Small Business / First Hire. B2B and wholesale credit? Commercial Credit Manager. Leading the function and team? Senior Credit Manager. Billing and AR-focused? Accounts Receivable Manager.
6 Free Credit Manager Job Description Templates
Download all six as a single Word document or copy individual templates. Each follows the same structure: a company brief, a job summary framing risk and revenue, responsibilities by area, requirements, and a compensation note. Fill in the brackets before you post.
Download All 6 Job Description Templates
General, credit and collections, small business, commercial, senior, and AR manager. All in one DOCX.
Template 1: Credit Manager (General)
The universal version: credit policy, customer creditworthiness, AR management, and collections oversight, with the exempt classification and reporting structure built in.
Credit Manager Job Description (General)
CREDIT MANAGER JOB DESCRIPTION
Company: __
Location: __ [ ] On-site [ ] Hybrid
Reports to: [CFO / Controller / President / Owner]
Employment type: Full-time
FLSA classification: Exempt (salaried)
Compensation: $_____ per year + [bonus]
ABOUT [COMPANY NAME]
[One or two sentences about your company, the customers you sell
to on credit, and the size of the receivables the role manages.]
JOB SUMMARY
[Company Name] is hiring a Credit Manager to own our credit and
accounts receivable function. You will set and enforce credit
policy, evaluate customer creditworthiness, manage the collections
process, and protect cash flow while supporting sales. This role
balances risk and revenue, deciding who we extend credit to and on
what terms.
KEY RESPONSIBILITIES
CREDIT POLICY AND RISK
•Set, document, and enforce credit policy and limits
•Evaluate customer creditworthiness and assign terms
•Review and approve credit applications and limits
ACCOUNTS RECEIVABLE AND COLLECTIONS
•Manage the accounts receivable portfolio and aging
•Oversee collections and resolve past-due accounts
•Reduce days sales outstanding (DSO) and bad-debt risk
REPORTING AND COORDINATION
•Report on AR, DSO, and credit risk to leadership
•Partner with sales, finance, and customers on terms
•Manage and develop any credit or collections staff
REQUIRED QUALIFICATIONS
•[3-5]+ years of credit, collections, or AR experience
•Strong understanding of credit analysis and AR management
•Experience setting or enforcing credit policy
•Analytical, decisive, and detail-oriented
•Clear communication with customers and internal teams
PREFERRED QUALIFICATIONS
•Bachelor's degree in finance, accounting, or business
•NACM certification (CBA, CBF, CCRA, or CCE)
•Experience with credit and ERP/accounting software
COMPENSATION AND HOW TO APPLY
Compensation: $_____ per year + [bonus]
Benefits: __
To apply, send your resume to __.
[Company Name] is an equal opportunity employer.
Template 2: Credit and Collections Manager
The combined version: owning both extending credit and collecting on it, plus leading a collections team. The most common title at smaller companies.
Credit and Collections Manager Job Description
CREDIT AND COLLECTIONS MANAGER JOB DESCRIPTION
Company: __
Location: __
Reports to: [Controller / CFO / President]
Employment type: Full-time
FLSA classification: Exempt (salaried)
Compensation: $_____ per year + [bonus]
JOB SUMMARY
[Company Name] is hiring a Credit and Collections Manager to own
both sides of the receivables cycle: extending credit responsibly
and collecting on it effectively. You will set credit policy,
evaluate customers, manage the collections process and team, and
keep cash flowing while maintaining good customer relationships.
KEY RESPONSIBILITIES
•Set and enforce credit policy, limits, and terms
•Evaluate customer creditworthiness and approve accounts
•Manage the full collections process end to end
•Resolve past-due accounts and disputes professionally
•Manage the AR portfolio, aging, and DSO
•Lead and develop the credit and collections team
•Report on AR, collections, and risk to leadership
•Partner with sales to balance revenue and risk
REQUIRED QUALIFICATIONS
•[3-5]+ years of credit and collections experience
•Strong collections and dispute-resolution skills
•Experience setting credit policy and managing AR
•Leadership and customer-relationship skills
•Analytical, organized, and decisive
PREFERRED QUALIFICATIONS
•Bachelor's degree in finance, accounting, or business
•NACM certification (CBA, CBF, CCRA, or CCE)
•Experience managing a credit or collections team
COMPENSATION AND HOW TO APPLY
Compensation: $_____ per year + [bonus]
Benefits: __
To apply, send your resume to __.
[Company Name] is an equal opportunity employer.
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The build-it version: for a small B2B distributor or manufacturer hiring its first credit manager to take credit and collections off the owner or bookkeeper and build the function.
Credit Manager Job Description (Small Business / First Hire)
CREDIT MANAGER JOB DESCRIPTION (SMALL BUSINESS / FIRST HIRE)
[Company Name] is hiring our first dedicated Credit Manager to take
ownership of credit and collections as we grow. Until now, credit
decisions and collections have been handled by the owner or
bookkeeper, and we need someone to build the function: set credit
policy, manage customer accounts, run collections, and protect cash
flow. This is a hands-on, build-it role for a self-directed credit
professional.
KEY RESPONSIBILITIES
•Build and document credit policy from the ground up
•Evaluate customers and set credit limits and terms
•Manage accounts receivable and the collections process
•Resolve past-due accounts while keeping customer goodwill
•Track DSO, aging, and bad-debt exposure
•Report credit and AR status directly to the owner
•Partner with sales to balance growth and risk
•Set up or improve credit and AR processes and tools
REQUIRED QUALIFICATIONS
•[3-5]+ years of credit, collections, or AR experience
•Comfortable building a function with little existing structure
•Strong credit-analysis and collections skills
•Self-directed and able to wear multiple hats
•Clear communicator with customers and the owner
PREFERRED QUALIFICATIONS
•Bachelor's degree in finance, accounting, or business
•NACM certification (CBA, CBF, CCRA, or CCE)
•B2B distribution or manufacturing experience
COMPENSATION AND HOW TO APPLY
Compensation: $_____ per year + [bonus]
Benefits: __
To apply, send your resume to __.
[Company Name] is an equal opportunity employer.
Template 4: Commercial Credit Manager
The commercial version: assessing business-to-business creditworthiness, reviewing financial statements and trade references, and managing a commercial AR portfolio.
Commercial Credit Manager Job Description
COMMERCIAL CREDIT MANAGER JOB DESCRIPTION
Company: __ (B2B / wholesale / manufacturing)
Location: __
Reports to: [CFO / Controller / VP Finance]
Employment type: Full-time
FLSA classification: Exempt (salaried)
Compensation: $_____ per year + [bonus]
JOB SUMMARY
[Company Name] is hiring a Commercial Credit Manager to manage
business-to-business credit and receivables. You will assess the
creditworthiness of commercial customers, set credit limits and
terms, manage the AR portfolio, and oversee collections, balancing
sales growth with credit risk across our commercial accounts.
KEY RESPONSIBILITIES
•Assess commercial customer creditworthiness and risk
•Set credit limits, terms, and policy for B2B accounts
•Review financial statements, credit reports, and trade refs
•Manage the commercial AR portfolio and aging
•Oversee collections and resolve commercial disputes
•Monitor DSO, exposure, and portfolio risk
•Partner with sales on large or complex accounts
•Report credit risk and AR performance to leadership
REQUIRED QUALIFICATIONS
•[4-6]+ years of commercial or B2B credit experience
•Strong financial-statement and credit analysis skills
•Experience with commercial credit policy and limits
•Knowledge of commercial collections practices
•Analytical, decisive, and detail-oriented
PREFERRED QUALIFICATIONS
•Bachelor's degree in finance, accounting, or business
•NACM certification (CBA, CBF, CCRA, or CCE)
•Industry experience in [wholesale, distribution, or manufacturing]
COMPENSATION AND HOW TO APPLY
Compensation: $_____ per year + [bonus]
Benefits: __
To apply, send your resume to __.
[Company Name] is an equal opportunity employer.
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The senior version: owning credit strategy, leading a team, overseeing a large portfolio, and partnering with finance leadership on risk and cash flow.
Senior Credit Manager Job Description
SENIOR CREDIT MANAGER JOB DESCRIPTION
Company: __
Location: __
Reports to: [CFO / VP Finance / Treasurer]
Employment type: Full-time
FLSA classification: Exempt (salaried)
Compensation: $_____ per year + [bonus]
JOB SUMMARY
[Company Name] is hiring a Senior Credit Manager to lead our credit
function and team. You will own credit strategy and policy, manage
a team of credit and collections staff, oversee a significant AR
portfolio, and partner with leadership on risk, cash flow, and
process improvement. This is a senior leadership role for an
experienced credit professional.
KEY RESPONSIBILITIES
•Own credit strategy, policy, and risk framework
•Lead and develop the credit and collections team
•Oversee a large or complex AR portfolio
•Set and monitor DSO, exposure, and risk targets
•Approve high-value credit decisions and exceptions
•Improve credit processes, systems, and reporting
•Partner with finance leadership on cash flow and risk
•Manage key customer and stakeholder relationships
REQUIRED QUALIFICATIONS
•[7]+ years of credit and collections experience
•Track record leading a credit team and function
•Deep credit-analysis and risk-management expertise
•Strong leadership, communication, and judgment
•Experience with credit systems and reporting
PREFERRED QUALIFICATIONS
•Bachelor's degree in finance or accounting; advanced degree a plus
•NACM Certified Credit Executive (CCE) or other designation
•Experience in [your industry]
COMPENSATION AND HOW TO APPLY
Compensation: $_____ per year + [bonus]
Benefits: __
To apply, send your resume to __.
[Company Name] is an equal opportunity employer.
Template 6: Accounts Receivable Manager
The AR-focused version: billing, cash application, collections, and reporting, broader on the accounting side than a pure credit role and often closer to a small business's needs.
Accounts Receivable Manager Job Description
ACCOUNTS RECEIVABLE MANAGER JOB DESCRIPTION
Company: __
Location: __
Reports to: [Controller / CFO / President]
Employment type: Full-time
FLSA classification: Exempt (salaried)
Compensation: $_____ per year + [bonus]
JOB SUMMARY
[Company Name] is hiring an Accounts Receivable Manager to own the
AR function: billing, cash application, collections, and reporting.
You will manage the receivables process and team, keep DSO low,
ensure accurate invoicing and posting, and support healthy cash
flow. This role is broader on the billing and accounting side than
a pure credit role.
KEY RESPONSIBILITIES
•Manage the full accounts receivable process
•Oversee invoicing, billing, and cash application
•Manage collections and resolve past-due accounts
•Maintain accurate AR records and aging reports
•Track and reduce days sales outstanding (DSO)
•Lead and develop the AR team
•Reconcile AR and support month-end close
•Report on AR and cash flow to leadership
REQUIRED QUALIFICATIONS
•[3-5]+ years of accounts receivable experience
•Strong knowledge of billing, cash application, and collections
•Experience managing AR processes and staff
•Solid accounting and reconciliation skills
•Organized, detail-oriented, and analytical
PREFERRED QUALIFICATIONS
•Bachelor's degree in accounting, finance, or business
•Experience with ERP and accounting software
•Supervisory or team-lead experience
COMPENSATION AND HOW TO APPLY
Compensation: $_____ per year + [bonus]
Benefits: __
To apply, send your resume to __.
[Company Name] is an equal opportunity employer.
Classification, Reporting, and Titles
This is the part the generic templates skip, and the part that matters most for a credit manager hire: the exempt classification, the reporting structure that signals the role's level, the certifications, and the title choice. Getting these right makes the posting credible and attracts the right candidates.
Credit manager is an exempt, salaried role
A credit manager is almost always exempt from overtime under the administrative exemption. The role's primary duty is office and non-manual work directly related to the general business operations of the employer, setting credit policy, deciding credit terms, and managing receivables, and it requires the exercise of discretion and independent judgment on significant matters, which is exactly what credit decisions involve. Legal references treat the credit manager as a classic example of the administrative exemption, and the salary is well above the federal threshold. That means the role is salaried, not hourly, and not entitled to overtime. State the exempt classification and a salaried compensation structure in the posting, and as always, confirm the classification on the actual duties rather than the title. This is general information, not legal advice.
Who the role reports to signals its level
Reporting structure is one of the clearest signals of what the role actually is. In a large company, a credit manager typically reports to a controller, CFO, or treasury function and may sit within a larger finance organization. In a small business, the same role usually reports directly to the owner or president, because there is no treasury layer in between. Stating the reporting line in the posting tells candidates the scope and seniority of the job and helps the right people apply. For a small business hiring its first credit manager, reporting to the owner is normal and worth saying plainly, since it signals both the autonomy and the build-it nature of the role. This is general information, not legal advice.
NACM certifications signal a serious credit professional
The National Association of Credit Management offers a ladder of certifications that recur in this field: the Credit Business Associate, the Credit Business Fellow, the Certified Credit and Risk Analyst, and the Certified Credit Executive at the top. None is strictly required, but they signal a candidate who has formally studied credit and risk, and the executive-level designation is common among senior credit professionals. A bachelor's degree in finance, accounting, or business is commonly preferred. For most roles, listing certifications and a degree as preferred rather than required keeps the candidate pool open while signaling that you understand the profession. For a small business, demonstrated credit and collections experience usually matters more than the credential. This is general information, not legal advice.
Mind the connotation of 'collections' in the title
The title you choose shapes who applies and how the role is perceived, internally and by customers. Credit professionals note that the word collections can carry a negative connotation, making a department sound like a collection agency rather than a partner to sales, so many companies fold the work into a credit manager or credit and collections manager title rather than a standalone collections title. In a small business, the work almost always spans both extending credit and collecting on it, so credit and collections manager is often the most accurate title. Choose the title that matches the real scope and the tone you want, and be consistent between the posting and the internal role. This is general information, not legal advice.
An Exempt, Salaried Role
A credit manager's primary duty, setting credit policy and making credit decisions with discretion and independent judgment, typically meets the administrative exemption, and the role is frequently cited as a textbook example of it. The salary is well above the federal threshold, so the role is exempt and salaried, not hourly. Classify on the actual duties, not the title.
For the full classification picture, the exempt vs non-exempt guide covers the administrative-exemption duties test that a credit manager clears.
Requirements and Skills to Include
Requirements for a credit manager center on credit and AR experience, analytical judgment, and the ability to balance risk against sales. The SHRM job description tools describe a good job description as a plain-language summary of a role's duties and requirements, and for a credit role that means concrete, demonstrable skills rather than a generic list. The difference shows in how the lines are written.
Weak requirement
Strong requirement
Finance experience
3+ years of credit, collections, or AR experience
Knows credit
Sets and enforces credit policy and limits
Good with numbers
Strong credit analysis and AR portfolio management
Certifications a plus
NACM certification (CBA, CBF, CCRA, or CCE) preferred
Communication
Balances customer relationships with risk decisions
Set the bar at credit and AR experience, policy-setting judgment, and the analytical skill to manage risk, list a degree and certifications as preferred, and keep every line job-related and neutral. The EEOC rules on job advertisements prohibit postings that express preferences based on protected characteristics, so the demands of the role belong in the posting written as the job's requirements, not a sketch of the person imagined doing it.
Credit Manager Salary
Credit manager pay sits in the upper-middle range and varies widely by company size, industry, and region. Anchor on the federal category, then price your size and market.
Grouped With Financial Managers (BLS)
There is no dedicated federal code for credit manager; the Bureau of Labor Statistics groups the role within financial managers, which had a median annual wage of $161,700 as of May 2024 (10th percentile $86,490). That category skews toward banks and large enterprises; national compensation surveys focused on the credit manager title specifically run lower, reflecting more small and mid-sized employers.
Because the federal category mixes credit managers with higher-paid finance leadership, the official median overstates what a typical credit manager at a smaller company earns. Market data focused on the credit manager title shows a wide range, with smaller-company and combined credit-and-collections roles toward the lower end and large-portfolio or banking roles well above. Pay rises with portfolio size, team size, and industry. Benchmark to your specific company size, industry, and local market rather than to the broad financial-manager figure. This is general information, not compensation advice.
Matching the Title to Your Company
Three distinctions decide which template and title fit: credit manager versus analyst, the credit-collections-AR overlap, and commercial versus consumer. Getting these right is what makes the posting land with the right candidates.
Credit manager vs credit analyst
These are different roles at different levels, not interchangeable titles. A credit analyst is the more junior, analytical role: evaluating creditworthiness, reviewing applications, and recommending limits, typically reporting to a credit manager and earning a lower salary. A credit manager owns the function: setting policy, making final credit decisions, managing the AR portfolio and collections, and often managing analysts. If you need someone to analyze credit and recommend decisions, you want an analyst; if you need someone to own credit policy and run the function, you want a manager. Posting the wrong one draws the wrong candidates, so match the title to whether the role decides and manages or analyzes and recommends.
Credit manager vs collections manager vs AR manager
These overlap and are often combined, especially in smaller companies. A credit manager focuses on the front end, deciding who gets credit and on what terms. A collections manager focuses on the back end, recovering what is owed. An accounts receivable manager is broader on the accounting side, owning billing, cash application, and collections together. In a small business, one person usually does all of it, which is why credit and collections manager is such a common combined title, and why an AR manager title can fit when the role leans toward billing and accounting. Pick the title that matches where the real weight of the job sits: credit decisions, collections, or the full receivables and billing cycle.
Commercial vs consumer credit manager
This split matters because the two work in different worlds. A commercial credit manager handles business-to-business credit, common in wholesale, distribution, and manufacturing, assessing companies as customers by reviewing financial statements, credit reports, and trade references. A consumer credit manager works in banking or retail lending, managing credit extended to individual consumers under a different set of regulations. For most small businesses selling to other businesses, the commercial version is the relevant one. Name commercial or consumer in the posting when the distinction matters, since the experience and regulatory knowledge do not transfer cleanly between them.
After You Hire: Onboarding a Credit Manager
Onboarding a credit manager is a standard salaried-hire start with an emphasis on handing over the credit policy, customer base, and AR systems the role will own. For a small business hiring its first credit manager, this is also the moment to document credit policy that may have lived only in the owner's head.
Send the offer
Confirm the title, salary, bonus, and exempt classification in writing. An offer letter with e-signature makes the terms clear and starts the hire.
Orient on credit policy
Walk the new manager through your credit policy, terms, customer base, and AR systems, so they can take ownership quickly.
Store the records
Keep the offer, signed policies, and any NACM certifications organized and accessible from day one.
Set the first priorities
Agree on what success looks like in the first 30, 60, and 90 days, whether that is reducing DSO, building policy, or cleaning up aging.
Once the offer is ready, the offer letter template handles the hire with the salary and exempt classification stated, and the onboarding template gives a structured start. FirstHR connects the offer, e-signature, document storage, and onboarding workflow in one place, so a small business can capture signed policies, store any NACM certifications, and run a consistent first few weeks while the new manager takes ownership of credit and receivables. FirstHR is an HR and onboarding platform, not a credit, accounting, or collections system, and it does not run payroll or administer benefits, so pair it with those tools. Applicant tracking is coming soon to FirstHR.
Key Takeaways
A credit manager owns credit policy, accounts receivable, and collections, balancing sales growth against cash-flow risk.
Use the template that matches the role and setting: general, credit and collections, small business, commercial, senior, or AR manager.
The role is almost always exempt and salaried under the administrative exemption, not hourly.
Reporting line signals the level: owner or president for a small business, CFO or treasury for an enterprise.
In a small business the work usually combines credit and collections into one role reporting to the owner; AR manager fits when it leans toward billing.
Pay is upper-middle and size-dependent; the federal financial-manager category ($161,700 median, May 2024) overstates a typical smaller-company credit manager.
Frequently Asked Questions
What does a credit manager do?
A credit manager owns a company's credit and accounts receivable function, deciding who the company extends credit to, on what terms, and how it collects what it is owed. Day to day, that means setting and enforcing credit policy, evaluating customer creditworthiness, approving credit applications and limits, managing the accounts receivable portfolio and its aging, overseeing collections on past-due accounts, and reducing days sales outstanding and bad-debt risk. The credit manager reports on AR and credit risk to leadership, partners with sales to balance revenue against risk, and often manages a team of credit or collections staff. It is a finance role that balances two competing goals: supporting sales by extending credit, and protecting cash flow by managing the risk that comes with it. The role is analytical, decision-heavy, and relationship-driven. This is general information, not legal advice.
What are a credit manager's duties and responsibilities?
A credit manager's duties group into credit policy and risk, accounts receivable and collections, reporting and analysis, and leadership and coordination. Credit policy and risk: setting and enforcing credit policy, evaluating creditworthiness, and approving credit applications and limits. Accounts receivable and collections: managing the AR portfolio and aging, overseeing collections and past-due accounts, and reducing days sales outstanding and bad debt. Reporting and analysis: reporting on AR, DSO, and credit risk, analyzing portfolio exposure, and supporting cash-flow planning. Leadership and coordination: managing and developing credit and collections staff, partnering with sales on terms, and maintaining customer relationships. The emphasis shifts by role and company size, a small-business first hire builds the function from scratch while a senior manager leads a team and a large portfolio, so a strong posting picks the responsibilities that match the specific role. This is general information, not legal advice.
What is the difference between a credit manager and a credit analyst?
A credit manager owns the credit function while a credit analyst supports it, and they sit at different levels. A credit analyst is the more junior, analytical role: evaluating customer creditworthiness, reviewing applications and financial information, and recommending credit limits, typically reporting to a credit manager and earning a lower salary. A credit manager sets credit policy, makes the final credit decisions, manages the accounts receivable portfolio and collections process, reports to leadership, and often manages analysts and collections staff. In short, the analyst analyzes and recommends, while the manager decides and runs the function. When hiring, decide whether you need analytical support, which points to an analyst, or someone to own credit policy and the receivables function, which points to a manager, and post the title that matches. This is general information, not legal advice.
Is a credit manager exempt or non-exempt under the FLSA?
A credit manager is almost always exempt and salaried, not entitled to overtime. The role qualifies under the administrative exemption: its primary duty is office and non-manual work directly related to the general business operations of the employer, setting credit policy, deciding terms, and managing receivables, and it requires the exercise of discretion and independent judgment on significant matters, which credit decisions clearly involve. The credit manager is frequently cited as a textbook example of the administrative exemption, and the salary is well above the federal threshold. That means the role is paid a salary rather than an hourly wage and is not owed overtime. As always, the exempt classification follows the employee's actual duties and salary rather than the job title alone, and some states have stricter rules, so confirm the analysis for the specific role. This is general information, not legal advice.
What qualifications does a credit manager need?
A credit manager typically needs several years of credit, collections, or accounts receivable experience, a strong grasp of credit analysis and AR management, and the judgment to set and enforce credit policy. A bachelor's degree in finance, accounting, or business is commonly preferred, and certifications from the National Association of Credit Management, the Credit Business Associate, Credit Business Fellow, Certified Credit and Risk Analyst, and Certified Credit Executive, signal a candidate who has formally studied credit and risk, though they are usually preferred rather than required. Beyond technical knowledge, the role calls for analytical skill, decisiveness, clear communication with customers and sales, and, for senior roles, team leadership. The right bar depends on the role: a small-business first hire needs to be self-directed and able to build a function, while a senior manager needs leadership and deep expertise. List the experience, education, and certification expectations your specific role needs. This is general information, not legal advice.
How much does a credit manager make?
Credit manager pay varies widely by company size, industry, and region, and the role generally sits in the upper-middle salary range. There is no dedicated federal occupation code for credit manager specifically; the Bureau of Labor Statistics groups the role within financial managers, which had a median annual wage of $161,700 as of May 2024, with the lowest 10 percent earning less than $86,490. That figure reflects the broader financial-manager category and skews toward larger enterprises and banks, where many credit managers work. National compensation surveys focused on the credit manager title specifically tend to show lower figures, often in the range from the high-sixties to the low-hundreds of thousands depending on company size and seniority, because they capture more small and mid-sized employers. Pay rises with portfolio size, team size, and industry. Benchmark to your specific company size, industry, and market rather than to a single national number. This is general information, not legal or compensation advice.
Does a small business need a credit manager?
Sometimes, but often not as a standalone role at first. Many small businesses handle credit decisions and collections through the owner, a bookkeeper, or a controller until the volume of credit sales and past-due accounts grows enough to justify a dedicated hire. The clearest case for hiring is a small business-to-business distributor or manufacturer that sells on credit, where receivables are growing, days sales outstanding is creeping up, and bad debt or cash-flow strain is becoming a real risk. At that point, a credit manager, often a combined credit and collections manager reporting directly to the owner, pays for themselves by tightening policy and improving collections. Below that threshold, the work is usually folded into an existing finance or bookkeeping role. The decision comes down to the volume and risk of your credit sales, not headcount alone. This is general information, not legal advice.
What should a credit manager job description include?
A strong credit manager job description names the specific role and setting first, since a general credit manager, a combined credit and collections manager, a small-business first hire, a commercial credit manager, a senior manager, and an AR manager differ meaningfully. It should include a brief about the company and the receivables involved, a job summary that frames the balance of risk and revenue, and responsibilities grouped into credit policy and risk, accounts receivable and collections, reporting, and leadership. The qualifications should state the experience level, any degree or NACM certification preference, and the analytical and communication skills the role needs. The most valuable additions that generic templates skip are the practical specifics: the exempt salaried classification, the reporting structure, owner or president for a small business versus CFO or treasury for an enterprise, and an honest framing of when a small business actually needs the role. Close with a realistic salary, an equal opportunity statement, and clear application instructions. This is general information, not legal advice.
