Credit Controller Career Description
Credit controllers are employed by firms to handle all the liaison and administrative duties arising from hire-purchase transactions. In this way the hire-purchase system can be managed on an organised basis and the interests of both buyer and seller can be protected.
What am I going to do in this occupation?
Over the years, buying on credit has become a customary way of doing business. Customers use credit extensively to buy houses, cars, large domestic appliances and many other goods and services. The vast majority of business purchases, such as raw materials used in manufacturing and merchandise to be sold in retail stores, are also bought on credit so that businesses do not have to tie up their cash in inventories.
Credit controllers are responsible for opening accounts for prospective customers in accordance with the company's credit-policy by investigating the credit-worthiness of prospective buyers, drawing up the hire purchase contracts, and collecting the deposits and payments.
Credit controllers have the financial authority to accept or reject credit applications. In extending credit to businesses, credit controllers review financial reports submitted by the applicant, interview representatives of the businesses, and review credit reports to determine the records of the firms in repaying debts. When extending credit to individuals, credit controllers rely on personal interviews, credit bureaus and banks. Although it is not necessarily the duty of credit controllers to formulate the hire-purchase contract (it is usually the task of executive level credit managers in co-operation with other top managers to formulate company credit policy) they must be able to interpret the legal terms and requirements to clients. In some large organisations, credit controllers may be responsible for establishing a credit policy.
They must also ensure that the contract is correctly signed by both parties.
Credit controllers have to check all accounts on a monthly basis. They must frequently contact customers who are unable or refuse to pay their debts. They do this through writing, telephoning or personal contact. If these attempts fail, credit controllers may refer the account to a collection agency or assign an attorney to take legal action.
Although the work of credit controllers are not physically demanding, the mental strain of dealing with figures, ascertaining liabilities, taking calculated risks at times and dealing with difficult clients, can put great strain on them.
Requirements
What kind of personality do I need?
Credit controllers work with people and their money - usually a sensitive subject. Because it is necessary to maintain good customer relationships, a pleasant personality and appearance, as well as the ability to speak and write effectively is required. Furthermore, credit controllers sometimes have to demand on overdue accounts and this may put some extra strain on them. However, they have to be discreet yet firm.
Credit controllers often draw upon their personal knowledge of human nature and their powers of observation when dealing with customers. Sometimes their judgment can be wrong but they must be prepared to learn from their mistakes.
Persons interested in credit control should be able to analyse detailed information and draw valid conclusions based on this analysis. They must be prepared to spend most of their working day doing calculations.
Where can I work?
The work performed by credit controllers allows them to become familiar with almost every aspect of their company's business, thereby opening the way for advancement to more senior positions in credit management or possible movement into other fields in the company.
Furthermore, the increased use of bank credit cards for consumer purchases may in future cause retail stores to substitute these bank credit cards for their own charge accounts thereby reducing or even eliminating their own credit departments.
Can I work for myself in this occupation?
No self-employment possibilities exist.
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