Credit hold
A block on new orders or shipments for a customer who's over their credit limit or seriously past due, until the balance is paid or the order is approved.
Credit holds stop a business extending more credit to a customer who may not pay. They also cost sales, so many teams use an approval route rather than a hard stop.
Telling the customer early, before an order is stuck in the warehouse, keeps a hold from turning into a customer service problem.
Related terms
- Credit limitThe maximum outstanding balance a business lets a customer carry before new orders are held or reviewed.
- Delinquent accountA customer account with invoices significantly past due, usually flagged for closer follow-up, a credit hold or escalation.
- Order to cash (O2C)The end-to-end process from receiving a customer order to collecting and applying the cash for it: order management, credit, invoicing, collections and cash application.