Credit Limit: It is an agreement or arrangement between an institution and a client to determine the maximum amount of indebtedness allowed for the client. Once this value is reached, it is not allowed to exceed or renew it in favor of the client until he pays off all or part of the indebtedness due to him as per the agreement.
Credit Period: It is an agreement or arrangement between an institution and a client to determine a specific time period within which the client will pay off the indebtedness due to him. The period is calculated starting from the date of the transaction, provided that it is not linked to any other periods for previous or subsequent transactions. The credit period is calculated from the date of each transaction separately.
1. Enabling the Credit Limit/ Credit Period
Click on “Clients” from the main menu.
Click on “Client Settings“.
Click on the “General” tab.
Click on the checkboxes for “Credit Limit” / “Credit Period Limit” to activate them.
Click on the “Save” button.
2. Setting the Credit Limit/ Credit Period Limit of a Client
Add a value for “Credit Limit” according to the currency specified in the client account.
Add a “Credit Period Limit” specified in days.
Click the “Save” button.
It is not mandatory to enter both the Credit Limit and Credit Period Limit at the same time.
If only the Credit Limit is activated: The client will be subject to a maximum allowable debt on the account without being restricted by a repayment period.
If only the Credit Period Limit is activated: The client will be restricted by a period to pay off the outstanding debt, without being restricted by a maximum allowable value for this debt.
If both Credit Limit and Credit Period Limit are activated: The client will be subject to both a maximum value for the outstanding debt that cannot be exceeded, and a repayment period that must not be exceeded.
