---
title: "Credit hold: definition | Rex glossary"
description: "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."
canonical: https://www.rex.inc/glossary/credit-hold
---

# 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 limit The maximum outstanding balance a business lets a customer carry before new orders are held or reviewed.](https://www.rex.inc/glossary/credit-limit)
- [Delinquent account A customer account with invoices significantly past due, usually flagged for closer follow-up, a credit hold or escalation.](https://www.rex.inc/glossary/delinquent-account)
- [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.](https://www.rex.inc/resources/glossary/order-to-cash)

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