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Guide
How to set a safe credit limit
A credit limit is how much outstanding you allow a customer to have at any one time. Set it too high and you increase the risk of loss; set it too low and you lose sales.
Start with a recommended limit
A credit assessment gives a recommended credit limit based on the company's size and solidity. It is a good starting point to adjust from.
Adapt to the relationship
- New customer? Start low and increase gradually
- Large order? Consider part-payment or prepayment
- Weak score? Set a cap and watch for changes
Follow up over time
A safe limit today may be too high in a few months. With alerts you are notified if the customer's situation changes, and can adjust before it becomes a problem.