Key Details:
Credit Hold acts as a financial safeguard for the business, ensuring that transactions are paused if a client has reached their debt capacity or failed to pay previous invoices on time.
- System Category: This setting is found within the Customer – General (Summary) and Financial sections of the software.
- Automated Triggers: The system can be configured to apply this status automatically when a customer exceeds their defined Credit Limit or surpasses a certain number of days past due.
- Administrative Control: While the system flags these accounts, authorized managers can often provide a manual override for specific trusted clients to allow a transaction to proceed.
Use Case Example
Imagine a landscaping firm with a $5,000 credit limit that currently owes $4,800. If they try to rent a skid steer for the weekend, the system will place the account on a Credit Hold because the new charge would push them over their limit. The warehouse team will see this status and stop the dispatch until the firm pays down its balance or a manager increases their credit line.
