Being a credit controller might not be the job you dreamed of when you were growing up, but it’s interesting work with lots of upward mobility. Here’s what you can expect…
As a credit controller, you’ll learn all sorts of new skills, such as how to recover a debt from an individual, how to manage company debt, and how to process payments. These might not sound like the most glamorous tasks, but they are valuable life skills.
In this post, we’re going to discuss what credit controllers do, how you become one, and what level of upward mobility you can expect.
What Does a Credit Controller Do?
Credit controllers manage the debts of existing creditors and decide whether to loan money to them. This means you’ll be the person deciding whether to loan money to an individual or company and managing their existing debts.
As a credit controller you can either lend to businesses (commercial credit) or to the public (consumer credit). This profession can also either be outsourced or in-house as part of a company’s finance or credit team.
Almost every company or organisation, from charities to banks, need some form of credit control. This means that the role isn’t going anywhere, so if you qualify and perform well in this profession, you’ll have a job for life.
Specific Duties of a Credit Controller
Whatever organisation you work in, and whether you’re outsourced or in-house, your duties as a credit controller will always include:
- Checking the credit rating of your clients with banks and deciding whether or not to offer them credit.
- Setting up the terms and conditions of the loan.
- Negotiating repayment plans for clients to follow.
- Dealing with internal queries about payments.
- Making sure clients pay their money on time by tracing missing debtors and visiting them to collect payment.
- Processing payments.
- Starting legal proceedings if your clients don’t pay their debts, and arranging for the repossession of goods to recover those debts.
Some of this work might sound a bit technical and potentially confrontational, especially when it comes to making clients pay their debts. However, they will improve your negotiating skills and ability to deal with tough situations.
If you can deal with this aspect of being a credit controller, you’ll be able to deal with confrontation outside your job that much easier.
How Do You Become a Credit Controller?
If you’ve not been put off by the job spec above, and are excited to know more about being a credit controller, here’s how you become one.
In terms of the kind of person employers are looking for, someone who can remain calm under pressure and be assertive with what they want would be ideal. It’s also an advantage to have good numerical skills and be able to explain financial matters clearly.
On top of these qualities, employers will expect you to have a good standard of education and confidence using spreadsheets and computerised account packages. Having at least 5 GCSEs grade A-C and a BTEC in business or finance wouldn’t go amiss.
That being said, there are no minimum qualifications for this role. They’re certainly not a requirement, and not having them shouldn’t put you off applying for a credit controller position.
Starting a Career in Credit Control
You’ll start out as a junior credit controller initially, and become a fully-fledged credit controller once you’ve learnt the necessary skills to go it alone.
To speed up this process, you might consider applying for a diploma from the Institute of Credit Management. You don’t have to do these diplomas full-time as there are part-time and distance learning options available. There are three levels to the diploma:
- Level 2 Diploma in Credit Management
- ICM Level 3 Diploma in Credit Management
- ICM Level 5 Diploma in Credit Management
So, apply to be a junior credit controller, try to get on an Institute of Credit Management diploma, and work your way up to a fully-fledged credit controller.
Is There Much Career Progression as a Credit Controller?
Before we end this post, we’re going to briefly go over the career progression of this role so you can factor it into your 5-to-10-year life plan.
Companies often provide credit controllers with the opportunity to rise through the ranks from controller to manager. Making the progression to credit manager can take years, but there is a clear career path for those who have their eyes on becoming managers.
There is a culture of internal promotion in the credit profession, but employers may need to look outside of the company for a manager. To be considered for a promotion you’ll have to show you are:
- Capable of handling a team of your peers.
- Able to carry out some of the more demanding jobs within the company’s credit department.
Being a credit manager is obviously a lot more difficult that being a controller, but with more responsibility comes higher pay.
To put the progression from credit controller to manager in perspective, a controller typically gets paid between £16 and £25k per year, whereas a manager can earn £50k plus. Not a bad end-salary for a job that requires zero initial qualification.
Think You Want to Become a Credit Controller?
In this post, we’ve discussed what a credit controller is, what they do, how you can become one, and what the career progression of the role is.
The only other information you’ll find about this role is through first-hand experience. So, if you’re interested in becoming a credit controller, go out there and apply for some open positions. What have you got to lose?