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- Credit Line or Credit Limit
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- Open Account Sales; Open Account Terms; Extension of Credit on Open Account Terms
- Order Approval; Order Hold; Credit Reviews; Pending Order Review
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- Root Cause Analysis of Past Due Balances
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- Terms of Sale: Examples
- Types of Credit: Consumer Credit; Bank Credit; Commercial Credit; B2B; Business to Business
- Written Credit Policy Manual
- Handling Post Audit Claims More Effectively; Post Audit Claims
- Do's and Don'ts of Business to Business Debt Collection, Debt Collection Practices
- Bad Debt Reserves
- Advantages and Disadvantages of Purchasing Credit Insurance
- A Letter of Introduction
- Addressing Chronic Slow Pay Customers
- More about Cash Forecasting
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Credit Line or Credit Limit
The term credit limit is sometimes used rather than credit line. These terms are not synonymous. A credit professional should use the term credit line whenever possible. Why? Use of the term credit line suggests that there may be room for an increase if the assigned credit line is not large enough for the customer. In other words, a credit line is the amount of credit that will be extended to a customer without additional credit review. A credit limit is the maximum credit a creditor company will extend to a particular customer.
© 2011. Michael C. Dennis. All Rights Reserved.