Customer Credit Limit
Customer Credit Limit refers to the predetermined maximum monetary value of goods or services that a seller permits a customer to purchase on credit within a specified period.
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The credit limit against a customer for orders and sales

KPI Definition

Customer Credit Limit refers to the predetermined maximum monetary value of goods or services that a seller permits a customer to purchase on credit within a specified period. This limit represents a crucial aspect of sales management, delineating the boundary within which a customer can conduct transactions without requiring immediate payment. Customer Credit Limit serves as a foundational metric, embodying the balance between facilitating sales and managing financial risk.

Business Value

This metric helps businesses evaluate the credit limit against a customer

Movement Direction

Sample Formula

AVG (Credit_Limit_Amount)

Should Aim For
1
This metric should move down ie., decrease with time
2
3
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