Glossary · Credit management
Credit hold
Also called Account on stop, Account on hold
A credit hold stops new orders or work for a customer until an overdue balance is paid or brought back within its credit limit.
Putting an account on hold (“on stop” in UK usage) means no new deliveries, projects or services until the customer pays enough to bring the account back into line. It is one of the strongest levers a supplier has, because it ties the customer’s next need to the last invoice.
It works best when it is a known rule rather than a surprise. Put it in your terms — work may be paused when invoices are more than a set number of days overdue — and warn the customer before you apply it.
For service firms, a hold has to be weighed against the project: stopping mid-delivery can harm both sides. Holding the next phase, or new work, is often the cleaner option.
Example
A client’s invoices are 45 days overdue. The supplier warns that the account goes on hold in seven days. The client pays the €11,000 balance on day six, and the next sprint starts as planned.