Glossary
Credit limit
A credit limit is the highest debt you allow one customer to run up before you stop selling to him on credit.
What it means for a shop owner
It stops one customer's debt from growing so large that it threatens you if he pays late. Set it by his history and how regularly he pays, and raise it step by step for those who keep their word. Once he reaches it, ask for payment before any new sale.
A worked example
You set a limit of 500 for a customer who now owes 450. Any new credit sale above 50 passes the limit, so he pays the extra or settles part first.
Related
Try it in your shop, free, no card.
The free plan: the whole shop for one branch, an offline cashier with stock, debts and accounting, with a daily limit on invoices, expenses and purchase orders. What it includes