The limit, the reasoning behind it, and the date it gets looked at again.
SCREDIT recommends a credit limit from the customer financials, shows the rules and factors that produced it, records every change to the number, and schedules the next review from the size of the limit itself.
What is credit limit management?
Credit limit management is the practice of setting, recording and revisiting the maximum a customer may owe at one time. It covers how the limit is sized from the customer's financials, what evidence justified it, who approved it, how it has changed since, and when it is next reviewed.
The limit is the most consequential number in credit, and usually the least documented.
Most limits were set once, by someone who has since moved on, using reasoning that was never written down. The number survives in the ERP long after the customer that justified it has changed shape. Nobody can say what it was based on, nobody owns the decision to revisit it, and the first sign that it was wrong is a write-off.
What SCREDIT delivers
A Recommended Limit, From the Financials
Generate a limit recommendation for a customer from their captured financial statements, returned with the terms that suit it and a confidence score that says how much the underlying data supports the number.
Three Numbers, Not One
Every recommendation carries a headline limit, a conservative limit, and a stress-adjusted limit computed against a scored downside. You approve a number knowing what it becomes if the customer deteriorates.
The Reasoning, Attached
Each recommendation records the policy rules that fired, the input factors that drove it, and a written explanation. A limit approved in March can be reconstructed in November without asking the person who approved it.
Your Policy as Executable Rules
Maintain the credit policy rules the engine applies as a live, versioned set you create, update, and deactivate — rather than as a PDF the engine knows nothing about.
Engine Configuration Per Business
Tune the base limit cap, the conservative factor, the stress divisor, and the grade multiplier tiers for each business group, so a distribution arm and a construction supply arm can size limits differently under one platform.
Review Cadence Driven by the Limit
Define limit bands and the review interval each one earns, so a large line is revisited on a schedule its size justifies and a small account does not consume the same attention. Cadence can key off risk rating as well as limit size.
Every Change on the Record
Limit history captures the previous and new credit line, the previous and new terms, who made the change, and when. The number always has a provenance and a name against it.
Limits in the Customer's Currency
Recommendations carry an exchange-rate snapshot taken at the time of the decision, so a limit set on a foreign-currency customer stays interpretable when rates move.
What changes on the desk
Defensible Limits
Answer “why is this customer at $250,000?” from the record rather than from memory.
Downside Priced In
See the conservative and stressed figure at approval time, not after the customer slips.
Reviews That Actually Happen
Let limit size schedule the next look instead of relying on someone to remember.
One Policy Across Several Businesses
Size limits consistently within each business and comparably across the group.
Frequently asked questions
Does SCREDIT set the limit automatically, or do we still approve it?
You approve it. The engine produces a recommendation with its reasoning attached; the decision to grant a line, and at what number, stays with whoever holds that authority under your approval rules. The recommendation is there so the approver argues with evidence rather than starting from a blank field.
What is the difference between the recommended, conservative, and stress-adjusted limit?
The recommended limit is what the customer supports on the financials as filed. The conservative limit applies a haircut for cases where you want more headroom than the numbers strictly require. The stress-adjusted limit is what the recommendation becomes when the customer's score drops, which is the figure worth looking at before you approve a large line into a cyclical industry.
Can we make the engine reflect our own credit appetite?
Yes, at two levels. The policy rules the engine applies are yours to create, amend, and retire. Underneath them, the engine configuration — base cap, conservative factor, stress divisor, and grade multiplier tiers — is set per business group, so a group running several businesses with genuinely different appetites does not have to average them into one.
Does SCREDIT track live exposure and available credit against the limit?
Not today, and we would rather say so than imply it. SCREDIT owns the limit itself: how it was sized, what justified it, how it has changed, and when it is next reviewed. Your ERP remains the system of record for open orders and current balance, and it is where an order hold is enforced. If live utilization against the limit is the capability you are buying for, ask us where that sits on the roadmap rather than assuming this page covers it.
How does this differ from credit decisioning?
Decisioning answers whether to extend credit and produces the score and the approval. Limit management is about the number that follows: how it is sized from the financials, what downside cases sit behind it, how it changes over time, and when it comes back around for review. Most teams have some form of the first and almost none have a record of the second.
We already store credit limits in our ERP. Why would we hold them here too?
The ERP stores the number. It does not store the financials that justified it, the rules that produced it, the stressed figure you accepted, the person who approved it, or the date it should next be examined. SCREDIT holds the reasoning and the review schedule around the number, and your ERP stays the system of record for enforcement at the point of order.
How is the confidence score meant to be used?
As a signal about the inputs, not about the customer. A low confidence score usually means the financial data behind the recommendation is thin, stale, or incomplete — which is an argument for asking for better statements before approving a large line, rather than an argument against the customer.
What happens to limits set before we adopted SCREDIT?
They come across as the current line and become the starting point of the history, with subsequent changes recorded from that point forward. You will not retroactively acquire the reasoning behind a limit set five years ago, but you stop adding to the pile of numbers nobody can explain, and the first scheduled review puts a documented figure in place of an inherited one.
See how SCREDIT sizes a credit limit.
Bring a customer file and a set of financials. We will generate a recommendation and walk through the rules, factors, and stressed figure behind it.