Key Roles & Players In Credit

The credit lifecycle—often called the Order-to-Cash (O2C) process—involves many teams across a business. But at its core, it’s driven by credit, accounts receivable (AR), and collections. Each team plays a distinct role, yet they’re closely connected—working together to protect revenue, manage risk, and keep cash flowing.

Here’s how it all breaks down:

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Leadership

Setting the direction. Leadership defines the company’s credit strategy, risk appetite, and overarching goals. They ensure cross-functional alignment and drive initiatives that improve efficiency and performance.

• Set credit and collection policies
• Define risk thresholds and goals (e.g., DSO, bad debt, approval workflows)
• Ensure alignment between credit, sales, and finance
• Drive process improvements and tech adoption
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Credit Team

Managing the risk upfront. The credit team evaluates new and existing customers to determine if—and how much—credit should be extended. They are responsible for protecting the business from unnecessary financial exposure.

• Analyze credit risk using financials, payment data, and 3rd-party reports
• Set and adjust credit limits and terms
• Monitor accounts for signs of deteriorating credit health
• Collaborate with sales, AR, and leadership on exceptions and escalations
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Accounts Receivable (AR)

Managing the money coming in. The AR team ensures that invoices are accurate, sent on time, and paid promptly. They’re focused on the operational side of cash flow: tracking, applying, and reporting.

• Issue and manage invoices
• Apply payments accurately and quickly
• Reconcile accounts and manage short-pays or overpayments
• Generate reports for aging, DSO, and payment trends

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Collections

Recovering overdue payments. When invoices age past due, collections takes the lead. Their role is to recover outstanding payments while preserving customer relationships and escalating as needed.

• Conduct follow-ups via email, calls, or formal notices
• Negotiate payment plans or settlements when needed
• Escalate high-risk accounts to legal or third-party agencies
• Provide feedback to credit and AR teams for future decisions
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Order Management

Fulfilling the customer order experience. Order management ensures that customer orders are entered, validated, and routed appropriately. They’re often the first checkpoint when credit holds or limit issues arise.

• Verify credit status before releasing orders
• Ensure accuracy in pricing, terms, and delivery details
• Coordinate with credit and sales to resolve order blocks
• Prevent errors that could delay billing or collection
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Customer Service

Supporting customer and payment success. Customer service is the front line for addressing customer questions and issues, many of which relate to billing, disputes, or credits.

• Field questions about invoices, orders, or terms
• Resolve disputes that may delay payment
• Maintain positive customer relationships throughout the process
• Surface recurring issues to AR and credit for process improvement
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Accounting & Finance

Overseeing financial health and cash flow. Finance provides the broader financial lens, ensuring that receivables are accurately reflected in reporting and that credit decisions align with business health and goals.

• Reconcile payments and general ledger entries
• Provide cash flow and aging reports
• Collaborate on reserves for bad debt
• Align financial planning with credit strategy
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IT & Systems

Enabling the process. The IT and systems team provides the tools and data infrastructure that support automation, visibility, and scalability across the O2C process.

• Maintain and integrate ERP, CRM, and credit tools
• Automate rules for credit holds, scoring, and alerts
• Support dashboards and reporting
• Ensure data accuracy and access across teams

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The Bottom Line

While each team has its own area of responsibility, collaboration is key to the smooth functioning of the O2C cycle. Leadership ensures that all teams are aligned with business objectives, facilitates communication between departments, and drives continuous improvement in the process. When all players work together, it results in a streamlined, efficient cycle that manages credit risk while ensuring customer satisfaction and optimizing cash flow.

By understanding the roles and responsibilities of each team within the O2C cycle and the strategic guidance of leadership, businesses can create a more cohesive process that minimizes risk, improves collections, and enhances overall financial health. Leadership ensures that every department understands the bigger picture and contributes to the company’s long-term success.

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