Crack the Whip on Late Payments with Credit Limits
Pandle Credit Limits are here! If you haven’t started using them yet, here’s some advice on how to activate them and what you can use them for.
Many freelancers and small businesses often don’t consider the implications of how much credit they’re offering to their customers, and are instead just glad for the orders. Unfortunately, it’s usually when a customer goes bust and owes a large balance that small businesses start to consider imposing limits.
Rather than being stressed about how to manage your time, Pandle’s Credit Limits mean you’ll spend less time focused on client invoices and more time on the task at hand; your latest project.
The Credit Limit feature allows you to impose a limit on your customers – as you may have guessed! Once the customer’s balance goes beyond a certain limit (that you set) you will receive a warning on Pandle.
A good idea might be to set a small limit for new customers you have not worked with in the past which can be increased over time as they gain your trust. It may also be worth considering processing credit checks on your customers if the value of goods/services you sell them are high. You can then decide on an appropriate credit limit for them.
Pandle will automatically alert you when a customer has breached their limit so you can decide whether to keep supplying them by increasing their limit or whether you contact them to ask for more of the account to be cleared before selling more to them.
This will save you trawling through all of your invoices and worrying about too much demand, the perfect solution for those who are growing their client base.
You can activate a Credit Limit for a customer when you add them to Pandle. Simply head to Enter Transactions > + New > Customer. This will bring up the following pop up, in which you can toggle the Credit Limit as you see fit.
Credit Limits are individually set for each customer, so you can specify different amounts depending on project size, client’s payment history and your own accounts. Sound simple? It is!
Are you using Pandle’s Credit Limits? What are your thoughts? Let us know in the comment section below or drop us a line on email@example.com. If you have any trouble setting up your Credit Limits, please get in touch.