The credit manager’s role is changing
The credit manager’s role is no longer purely financial, and this is what interests SMEs. Until now, they have been found in companies with over 300 employees on average, but according to a survey by theAFDCC (French association of credit managers and consultants) 39% of those surveyed employing at least one credit manager are SMEs.
Collection is usually the first step towards credit management. This need arises when the company’s receivables are substantial. Many companies outsource this task, but with an in-house credit manager, they can implement a strategy better adapted to their needs. The entire “order to cash” process is prioritized. In addition, credit managers provide the companies in which they work with a robust financial structure, enabling them to grow with confidence.
New tools for new sources of information
the credit manager’s job is also affected by digitalization, the artificial intelligence revolution and big data! It is equipped with new tools.
Given that the number of companies filing their accounts is declining, it is vital to find new sources of information.
Predictive analytics are a case in point. The collaboration between a data scientist and a credit manager makes sense. Management and analysis enable the credit manager to manage the customer portfolio more efficiently, or to analyze and forecast risks more accurately, depending on the customer or geographical region. In a second phase, we direct our sales force towards the best sectors and regions. Numerous offers are being launched to automate and simplify these analyses!
The role of the credit manager: an increasingly cross-functional function
Credit management is no longer confined to debt collection, but is opening up to financial analysis, structuring, strategy and sometimes even consulting.
As a result, the credit manager’s remit is expanding to become a more cross-functional role. He becomes a business partner and communicator, interacting with internal and external players.
We’ve been talking about the “Daf business partner” for a long time now. Isn’t it time for the credit manager to follow suit? In regular contact with operational staff, he too becomes a business partner. The mission is becoming increasingly professional and complex. It is therefore entrusted to increasingly experienced profiles. Simply having a technical background is no longer enough: the credit manager must be equipped with the “soft skills” of a communicator and teacher.
Some of its missions remain unchanged. The customer workstation, for example. It’s the tools that help it achieve its objectives that are evolving: scoring, predictive, credit lines, traceability of information. What’s new is its collaboration with other departments, such as sales. This ensures that commercial disputes or simple invoicing errors are not at the root of unpaid invoices, and that receivables are collected under the best possible conditions.
Learn more:
Digitizing the order-to-cash process