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Sales · Definition

Credit Limit

The maximum outstanding balance a customer may hold on credit.

A credit limit caps total exposure to one customer, based on their payment history, financial standing and trading volume. New orders that would breach it are held for a decision.

The limit only protects you if it is enforced at the point of order. Approved after dispatch, it is a report; enforced before, it is a control.

Also called

  • credit line
  • credit ceiling

See it in AWRA OpsHub

Customer 360

Credit Limit is not just a definition here

Sales runs on this vocabulary every day in AWRA OpsHub — 14 of our 257 glossary terms describe things the platform actually does.