Accounts Receivable

Customer Credit Limit Review Template

Periodically review and adjust customer credit limits based on payment history and creditworthiness.

How to use this template

1

Review payment history

Analyze each customer's payment patterns, on-time payment rate, and any delinquencies.

2

Assess credit risk

Evaluate current credit conditions and customer financial performance.

3

Adjust credit limits

Increase limits for strong customers, reduce limits for payment issues or credit deterioration.

4

Communicate changes

Notify customers of any credit limit changes and update the AR system.

5

Monitor compliance

Ensure sales team respects updated credit limits to minimize credit risk.

Why use this template

  • Manages credit risk by limiting exposure to high-risk customers
  • Encourages timely payment through credit limit reviews
  • Reduces bad debt write-offs and collection issues
  • Balances growth with prudent credit management

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