---
title: "Credit limit"
description: "What is a credit limit? The most a customer may owe you before new credit orders are held. See how B2B sellers set it, and how it differs from credit days."
url: https://1flux.ai/glossary/credit-limit
last_updated: 2026-10-11
---

[Sales and CRM](https://1flux.ai/glossary#sales-and-crm)

# Credit limit

What is a credit limit, and how is it different from the credit days you give a customer?

Glossary Updated 11 October 2026

Definition

A credit limit is the maximum amount a customer may owe you at any one time before new orders on credit are held or need approval.

## What is a credit limit used for?

A credit limit protects the seller from having too much money tied up with one customer. Finance sets it from the customer’s payment history, financial statements or credit insurer guidance, and reviews it regularly. Exposure usually counts unpaid invoices plus confirmed orders not yet invoiced.

Checking a new order against the limit

Example

- Credit limit

  USD 200,000

- Currently owed

  USD 168,000

- New order

  USD 45,000

Exposure after the order

USD 213,000

Exposure would exceed the limit by USD 13,000, so finance reviews the order before it's released.

Don’t confuse it with [credit days](https://1flux.ai/glossary/credit-days): the limit caps the amount, credit days cap the time. Both feed into [accounts receivable](https://1flux.ai/glossary/accounts-receivable) management.

In 1flux

1flux stores each customer’s credit limit and shows it on the company record and the customer statement. Each customer’s maximum credit days is enforced on sales orders, with an override permission for named roles. [See companies and contacts](https://1flux.ai/products/crm/contact-management)

Related

## Keep exploring

### [Credit days](https://1flux.ai/glossary/credit-days)

How many days a customer has to pay, from a set starting date.

### [Accounts receivable](https://1flux.ai/glossary/accounts-receivable)

Money customers owe you for goods or services invoiced on credit.

### [Sales order](https://1flux.ai/glossary/sales-order)

The seller's confirmed record of what a customer ordered.

### [Companies and contacts](https://1flux.ai/products/crm/contact-management)

One record per customer, with its sales team, credit terms and addresses.

Last updated 11 October 2026