02/06/2026
🚨 Do some of your customers regularly go over their credit limit? 🚨
With credit limits in Xero, you can stay in control and stop this from happening before it becomes a problem. ✅
🔑 Why setting credit limits is important
Setting credit limits helps protect your cash flow and sets clear expectations with your customers. It reduces the risk of unpaid invoices, prevents customers from building up unmanageable balances, and gives you confidence that your business isn’t over‑exposed financially. Most importantly, it puts you back in control instead of reacting when it’s already too late.
✨ What Xero credit limits can do
Get notified if an invoice will take a customer over their limit
Restrict certain user roles from raising invoices once a limit is breached
Support better credit control without manual checks
🛠 How to set a credit limit in Xero:
1️⃣ From the Dashboard, click Contacts → Customers
2️⃣ Select the customer and click Edit
3️⃣ Go to Sales Defaults on the left‑hand menu
4️⃣ Set the Credit Limit and save
Simple steps. Better boundaries. Stronger cash flow. 💡
Need help setting this up or reviewing your Xero processes? Get in touch 👋