Credit limit
A credit limit is the maximum a customer can owe you at any point before further sales are held. It is the main tool a business has for capping its exposure to a single customer failing to pay.
Also searched as: customer credit control, credit terms
Updated July 2026
The limit only works if it is visible where the decision gets made. A limit stored in the accounts system while the salesperson is standing in the customer's shop with a delivery is not a control, it is a record.
This is one of the clearest arguments for a shared database. When the rep's screen shows the outstanding balance and the limit at the moment of the order, the block happens before the goods leave. When it does not, the finance team finds out after delivery.
Limits also need reviewing. A limit set three years ago for a customer who has since doubled their order size is either strangling a good account or exposing you badly, and nobody notices either until something goes wrong.
Where this lives in Wizard
SalesQuote to order to invoice without retyping anything, with discount rules that hold.
CRMEvery lead, quote and conversation on one customer record, with their balance right there.
AccountingPost entries automatically, reconcile the bank, and close the month without rebuilding it in Excel.
Mobile Sales AppReps get live stock, pricing and customer balances on the phone, and can sell from the van.