Managing a Client’s Credit Limit

About Credit Limits and Credit Periods

The Credit Limit is the maximum amount of credit that a financial institution or other lenders will extend to a debtor for a particular line of credit (sometimes called a credit line, line of credit, or a tradeline). This limit is based on a variety of factors ranging from an individual’s ability to make interest payments, an organization’s cash flow or ability to repay the credit card debt and is an obligation of the consumer to pay just like all other parts of the balance.

The Credit Period is the number of days that a client is allowed to wait before paying an invoice. The concept is important because it indicates the amount of working capital that a business is willing to invest in its accounts receivable in order to generate sales.

Select “Clients” from the navigation menu.
Select “Client Settings“.
Click the card “General“.
Check the Checkboxes “Credit Limit” and “Credit Period Limit” in “Client’s Extra Fields“.
Click “Save“.
- The checked fields will now be visible while adding or editing a client’s file.

Select “Clients” from the navigation menu.
Select “Manage Clients”.
Select the Client’s file you wish to add a credit limit to.
- Please follow the tutorial “Adding a Client” to add a credit limit for a new client.
Input the credit limit information under “Client Details“
- Credit Limit: Input the credit limit amount.
- Credit Period Limit: Input the credit period limit in days.
Click “Save“.