Customer Credit

Customer credit is the business function that decides whether customers can buy now and pay later, and manages the risk of doing so. Its main functions include:

• Reviewing credit applications: Gather business, payment, and reference information from customers.
• Assessing payment risk: Review credit history, financial information, and past payment behavior.
• Setting credit terms: Recommend credit limits, payment deadlines, and any required deposits.
• Maintaining accounts: Update credit limits and account information as circumstances change.
• Monitoring balances: Watch for customers approaching their limits or falling behind on payments.
• Managing credit holds: Decide when orders need review or approval before fulfillment.
• Coordinating with sales and collections: Resolve issues while balancing customer relationships and the business’s cash needs.

The goal is to support sales while keeping unpaid balances at a level the business can manage.