Key Responsibilities
- Analyze customer registration forms, financial statements, and credit bureau reports to approve and review credit limits.
- Actively monitor the accounts receivable portfolio and flag delinquent accounts or recurrent late payment trends.
- Conduct active collection outreach via telephone, email, and digital messaging channels, negotiating repayment terms within policy limits.
- Generate monthly collection KPI reports, closely tracking metrics such as DSO (Days Sales Outstanding) and delinquency rates.
- Reconcile incoming bank payments, investigate discrepancy claims, and post payments to clear customer accounts in the ERP system.
Requirements & Skills
Day in the Life
The daily life of a Credit and Collections Analyst is fast-paced, aiming to balance the company's liquidity with robust customer relations. The day begins by checking bank statements and clearing incoming payments in the ERP database. Following this, the analyst reviews blocked sales orders on credit hold, quickly analyzing credit files to determine whether to release orders or sustain holds under risk justifications. A major part of the afternoon is spent on structured call blocks and emails targeting outstanding accounts in the priority ledger. The analyst also frequently collaborates with sales managers to tailor credit solutions for prospective deals, and wraps up the day compiling delinquency reports and reviewing key DSO metrics for leadership.
Career Path
Top Tools
Frequently Asked Questions
What is the primary difference between credit risk analysis and collections?
Credit risk analysis is a preventive process performed prior to sales transactions to evaluate customer solvency. Collections is a corrective and relational process, strictly focused on recovering outstanding capital once a scheduled invoice payment has lapsed.
How is the performance of a Credit and Collections professional measured?
Performance is primarily measured by DSO (Days Sales Outstanding), which indicates the average number of days the company takes to collect cash from credit sales, coupled with reductions in delinquency rates and the gross recovery volume of aged accounts.