WHAT ARE THE LONGER TERM EFFECTS OF FURLOUGH?

So, You Want to Be a Credit Manager? Here's What You Need to Know

So, You Want to Be a Credit Manager? Here's What You Need to KnowCredit Management isn’t just about chasing payments — it’s about protecting the lifeblood of a business: cashflow. To help future finance leaders get a real feel for what it’s like to step into a Credit Manager role (and thrive!), we asked current Credit Manager, Philip Holborough to share their honest thoughts in our Voices of Transactional Finance Leaders Series. In this article, Philip talks about everything from the challenges he’s faced along the way, to the skills and attitudes that really make a difference. He also gives a glimpse into how the role is changing, what impact technology like AI might have, and why having a "bulldog attitude" could actually be one of your biggest assets. Whether you're just starting out or aiming for the next step in your career, their advice is packed with real-world lessons you won’t want to miss.What do you think future leaders should prioritise or focus on most in order to successfully make themselves appointable as a Credit Manager?Debtor payment trends. Regardless of industry the key to successful Credit Managers is analysis of payment performance – this is often the biggest tell-tale sign of potential payment issues in the future.What are both the best and the most challenging aspects of being the Credit Manager of a fast-paced business? Blending Credit with Sales. Often the two don’t mix well – but open, frank and honest conversations where clarity of objectives is understood on both sides will help in a very challenging environment.What are your opinions about the relationship between a Credit Manager and the FC/CFO and CEO? What is critically important in building a successful partnership and providing the right support to the FC/CEO/CFO? A good CFO will recognise the importance of a Credit Manager – not always the case with CEO as they are often more strategic and commercial in their approach and less likely to be open to credit conversations over sales performance.What new key skills or attributes do you think the next generation of Credit Managers are going to need to develop? Tenacity. Both internally and externally. “The squeaky wheel gets the oil!” Don’t be afraid to offer opinions based on gut instinct and past experience. You will earn the respect of the business very quickly if you are able to nail your colours to the mast! Are new technologies like Artificial Intelligence having much of an impact on your role as Credit Manager yet? What impact do you think they will have over the next few years? AI frightens me – but I recognise the importance of some labour-saving aspects. A computer will never get someone to pay a bill – only a human voice can do that.Is it possible to maintain a reasonable work life balance at Credit Manager Level or do you have to accept that there will be personal sacrifices in order to progress to that level?Clear boundaries are very important. CM can be a stressful occupation – you must be able to separate these to ensure no burn out!Away from core credit knowledge, what personality traits have been critical to your success as a Credit Manager? Are these natural or have you worked on developing them?The willingness to not let go! Bull dog attitude – obviously with respect to the customer and the wider business. Don’t give up.What is the one single best piece of advice you were given early in your career that still holds true today? “Show me the money!” Cashflow is critical to any business large or small – the Credit manager is the custodian of this process.If there’s one thing Philip’s advice makes clear, it’s that being a great Credit Manager is about a lot more than just ticking boxes. It’s about sharp instincts, real tenacity, clear communication, and a relentless focus on cashflow — all while building strong relationships across the business. The role might change over time, especially as new technologies come into play, but the core principles stay the same: know your numbers, trust your gut, speak up when it matters, and never lose sight of the bigger picture. For anyone thinking about a career in Credit Management (or already on the way), these lessons are pure gold. Take them on board, keep learning, and remember — the best Credit Managers aren’t just protecting the cash, they’re helping to drive the whole business forward. Looking for your next career move in finance or accountancy? At Sharp Consultancy, our expertise lies in matching your potential with the perfect temporary, interim, or permanent position. With a well-established presence in Leeds and Sheffield, our seasoned team of consultants extends their services across Yorkshire and beyond. Don't wait for opportunity to knock, reach out to us TODAY and let's chart your career path together.

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When the country was initially plunged into lockdown in March, the furlough scheme – which saw the Government foot the bill for up to 80% of an employee’s wages – was largely heralded as a lifesaver by many businesses who had seen their revenue stop, or at the very least slow down, overnight.

The scheme, which has seen the Government’s contribution reduce over of the last couple of months, was set to end on 31 October yet, this weekend’s announcement that we are again facing another period of lockdown which will force many businesses to close their doors was accompanied by the news that furlough would continue – back at its original level – until at least the end of this month.

Since its introduction in March, the Coronavirus Job Retention Scheme has supported 9.6 million jobs with 1.2 million employers making claims totalling £41.4bn (and counting).[1]

Many employers have already taken tough decisions in view of the expected end of furlough; redundancies increased in June to August 2020 by 113,000 on the year, and a record 114,000 on the quarter, to 227,000. The annual increase was the largest since April to June 2009, with the number of redundancies reaching its highest level since May to July 2009.[2]With still so much uncertainty, what do the coming months and beyond bring for businesses as they prepare to potentially welcome back employees who have spent some – or all – of the last seven months away from the work place?

It is worth bearing in mind that whilst COVID-19 is indeed a significant global pandemic affecting each and every one of us in some way, from a business perspective, not every sector is being affected to the same degree and, in fact, there are many industries which are experiencing growth. This – in some cases very rapid – growth has seen these companies face staffing challenges of a different kind as they look to recruit and build their teams to manage the increases in demand in a market that looks and feels very fluid and in many ways unfamiliar.

Furlough – in addition to providing financial support – has also enabled businesses to benefit in other ways; for some, this has afforded them with some much needed breathing space to reassess their operations, consider their costs moving forward and review roles and departments in preparation for whatever lies ahead.

Inevitably – and unfortunately – there have been job losses, and no doubt there are more to come as businesses restructure and take a much closer look into their systems and operations as they seek to improve efficiencies, some of which may have previously been put on the back burner whilst the primary focus was concentrated on the ‘day-to-day’ yet lockdown forced those considerations – namely working from home – to become an immediate necessity.

As we move forward, it is likely that an increasing number of organisations will see home working – at the very least a mix between home and office working – become the norm. Work from home policies which may have been rapidly introduced in response to the initial lockdown will need further review and the correct provisions and equipment supplied to support a longer term and more permanent change to working patterns.

For those businesses bringing employees back into work, they must have in place a proactive programme to manage the reintroduction of those individuals and their reintegration with those who have remained working throughout the duration. For many, furlough was a case of ‘the grass is greener’; for those continuing to work they may have felt resentment that they were covering for colleagues who were ‘enjoying’ time off whilst still receiving a large proportion of their monthly wage whereas those on furlough will have experienced feelings of uncertainty that the longer they spend out of the work place the more dispensable they become and the adverse affect of a lack of mental stimulation and day to day routine on their general well-being.

Companies must recognise that this is a critical time and ensure that they have taken into consideration how various roles may have needed to be adapted and communicated changes clearly and concisely. How companies handle their employees over the coming weeks and months – and indeed how they ensured that those who were on furlough remained engaged with the operation during their time away – will have significant implications for businesses as they move forward.

Businesses’ objectives will have undoubtedly had to change and adapt and alongside those, it is very likely that for many employees, they may find that their individual pre-lockdown career ambitions take something of a back seat. That is not to say that there are not opportunities for progression and promotion; some sectors are growing and over performing resulting in new and challenging roles opening up for those candidates seeking their next career move.

With a reasonable amount of uncertainty surrounding how business will be able to move forward remaining, many may understandably feel tentative about pressing ahead with recruitment plans. However, considering alternative solutions such as bringing somebody in on an interim basis, may buy businesses the time that they need before making a more permanent decision. Options which may previously have been considered unworkable could now very much be on the table; we recently placed an individual into a senior commercial finance role who, during the process, advised that they would be relocating away from the area. Pre-lockdown this would have almost certainly been a deal-breaker, however with successful home working strategies deployed, being based full time in an office is no longer seen as a barrier to securing the right candidate

However, even within those sectors for which the coming months and beyond may be difficult, it is vital that employers engage with their employees respectfully so as to ensure open two-way communication and foster a positive culture that encourages retention. Employers may be seen to be in the driving seat – the unemployment rate grew to 4.5% in the three months to August 2020 compared to 4.1% in the previous quarter [3]– yet, as the market swings round, businesses may find themselves facing challenges around retention – and potentially recruitment – as their actions now influence the decisions current and potential employees make in the future.

Sharp Consultancy specialises in the recruitment and executive search of finance and accountancy professionals. With offices in Leeds and Sheffield our highly experienced team of consultants recruit for temporary, interim and permanent roles across the full spectrum of positions throughout Yorkshire and beyond. CONTACT UStoday and speak to a member of our team about your recruitment needs or next career move.

[1]
HMRC coronavirus (COVID-19) statistics, https://www.gov.uk/government/collections/hmrc-coronavirus-covid-19-statistics, published 22 October 2020

[2]
ONS Labour market overview, UK: October 2020

[3][3]
ONS Labour market overview, UK: October 2020