In the dynamic world of finance, credit control is a crucial function that ensures the smooth operation of cash flow within a company.
As recruiters, we often encounter exceptional credit controllers who wonder why their impressive performance in this role doesn’t always translate into a promotion to a Credit Control Manager position.
The answer lies in understanding the distinct skills and attributes required for these two roles.
What does a Credit Controller do?
A credit controller is the backbone of a company’s accounts receivable department. Their primary responsibilities include:
• Managing customer accounts to ensure timely payment of invoices.
• Negotiating payment terms and handling collections.
• Analysing credit data and financial statements to determine creditworthiness.
• Maintaining detailed records of all interactions and transactions
• Credit controllers excel in these areas by being detail-oriented, methodical, and excellent communicators. Their success is measured by their ability to minimise overdue accounts and manage the credit limits of clients effectively.
Why being a top Credit Controller won’t automatically lead to a Credit Control Manager role
While a credit controller’s role is vital, the leap to a Credit Control Manager position involves a shift in responsibilities and required skills. Here’s why being an outstanding credit controller doesn’t always guarantee a smooth transition to Credit Control Manager:
1. You need strategic vision and tactical execution
Credit controllers are typically experts in tactical execution. They handle day-to-day tasks and ensure immediate financial stability. On the other hand, Credit Control Managers need to have a strategic vision.
The first major hurdle that many Credit Controllers face when moving into a more senior role is taking on the responsibility of developing and implementing both credit policies and procedures. As with most managerial roles, good day-to-day execution isn’t enough in a senior role, they also need the ability to align strategy with long-term business goals and drive change in terms of the ‘bigger picture’. Other responsibilities include:
• Forecast future credit risks and trends.
• Align credit control strategies with the broader financial goals of the organisation.
• Look beyond immediate collections to the overall financial health of the company and how credit policies impact long-term profitability.
2. You need to implement broader leadership skills
Credit Control Managers aren’t just individual contributors, they’re leaders for the entire function. Many people who are great at their job struggle with mentoring and leading, which requires an entirely different skill set. Likewise, leading a team often introduces new challenges and conflicts that you might not have experience in handling. Other responsibilities include:
• Conducting performance reviews and supporting career development within your team
• Delivering a leader skill set rather than focusing on individual performance. It includes emotional intelligence, conflict resolution, and the ability to inspire and motivate a team.
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3. You need to maintain stakeholder engagement
When an individual becomes a Credit Control Manager, they naturally have to start interacting with senior leaders, stakeholders and other department leaders. Much like the point above, this typically requires a different skill set and the ability to:
• Present credit performance and risk assessments to senior management.
• Collaborate with sales, legal, and finance departments to align credit policies.
• Negotiate with external partners and clients at a higher level.
• These interactions require strong interpersonal skills, the ability to communicate complex financial information clearly, and the confidence to make high-stakes decisions.
4. You may need to leverage your problem-solving and analytical skills
While there’s no denying that Credit Controllers require both problem-solving and analytical skills, they’re almost vital for a Credit Control Manager. In any role, managers will be expected to:
• Analyse market conditions and economic trends that could impact credit risk.
• Develop innovative solutions to mitigate credit risk.
• Use advanced financial modelling and analysis to support decision-making.
This analytical prowess goes beyond the scope of daily account management and requires a broader understanding of financial markets and risk management strategies, which may catch some Credit Controllers off-guard.
How to bridge the gap as a Credit Controller
If you’re a Credit Controller with aspirations of becoming a Credit Control Manager, you’ll want to look at your own development, skill set and the additional learning you can take on board to make the transition easier.
Pursue further education: As you’ll notice above, one of the core challenges that Credit Controllers face when transitioning to a managerial role is leveraging skill sets they’ve either never – or rarely – had to utilise. As you progress through your career, consider developing your skills around financial analysis, strategic management or leadership via online courses or in-person training.
Take on leadership tasks: A great way to understand your own limitations – and in turn build your ability – is to start taking on tasks that flex your leadership abilities, even if they’re not directly related to a managerial role. If you’re working in a larger project setting, volunteer to take on more responsibility and be as vocal as you can as this demonstrates a readiness for promotion.
Seek mentorship: A great way of building the necessary skills to become an effective Credit Control Manager is through mentoring. By understanding the various challenges and processes that an existing manager goes through, you can receive valuable insights.
The journey from credit controller to Credit Control Manager is not just a promotion but a significant shift in responsibilities and required skills. By understanding and preparing for these differences, aspiring Credit Control Managers can better position themselves for success. As recruiters, it’s our role to identify and nurture these potential leaders, ensuring they have the tools and support needed to make this critical transition.
This article aims to provide a comprehensive understanding of the distinctions between the roles and offers guidance for those aspiring to move up the career ladder. If you have any questions or need further career advice, feel free to reach out to our specialist Credit Control team.