How to Manage Credit Limits for Your Customers #
If you sell products or services on credit, you may want to set credit limits for your customers. Credit limits help you control the amount of money that your customers owe you and prevent bad debts.
In this post, we will show you how to use our software to manage credit limits for your customers. You can set a default credit limit for all customers, or customize the credit limit for each customer individually. You can also monitor the credit status of your customers and prevent sales when the credit limit is reached.
Setting the Default Credit Limit #
The default credit limit is the maximum amount of credit that you allow for any new customer. You can change the default credit limit from the settings menu. Here are the steps:
– Go to Settings > Contact > Default Credit Limit.
– Enter the amount of credit that you want to set as the default limit. For example, if you want to set $10,000 as the default limit, enter 10000.
– Click Save.
The default credit limit will apply to all customers who do not have a specific credit limit set in their profile.
Setting the Credit Limit for Each Customer #
You can also set a different credit limit for each customer, depending on their payment history, credit score, or other factors. To do this, you need to edit the customer’s profile. Here are the steps:
– Go to Contacts > Customers.
– Find the customer that you want to edit and click Action > Edit.
– Go to More Information > Credit Limit.
– Enter the amount of credit that you want to set for this customer. For example, if you want to set $5,000 as the credit limit for this customer, enter 5000.
– Click Save.
The credit limit that you set for this customer will override the default credit limit.
Note: If you do not want to have any credit limit for a customer, leave this field blank. Do not enter 0 as the credit limit, because that means that the customer has no credit at all.
Monitoring and Enforcing the Credit Limits
Once you have set the credit limits for your customers, you can monitor their credit status from the dashboard. You can see how much credit they have used and how much they have left. You can also see if they have any overdue invoices or payments.
If a customer reaches their credit limit, you will not be able to create any partial or credit sales for them. You will see a warning message that says “Credit Limit Reached”. You can either ask the customer to pay some of their outstanding invoices or increase their credit limit before proceeding with the sale.
Credit limits are a useful tool to manage your cash flow and reduce your risk of bad debts. By using our software, you can easily set and adjust the credit limits for your customers and keep track of their credit status. You can also prevent sales when the credit limit is reached and avoid overextending your credit.
We hope this post has helped you understand how to use our software to manage credit limits for your customers. If you have any questions or feedback, please feel free to contact us.