Stop Credit Decision Checklist
Placing an account on stop is one of the most effective levers you have over a slow payer — this checklist helps you make the call consistently instead of agonising over it each time.
What's included
- The triggers that should put an account on stop
- A consistent decision checklist
- How to communicate a stop professionally
- When to escalate to external recovery
6 min read
Why stopping supply works
Continuing to supply a customer who is not paying simply increases your exposure. Placing the account on stop — no further credit orders until the balance is cleared or arranged — removes the customer's incentive to keep stalling, because they need the next delivery. The hard part is making the decision consistently rather than letting a good relationship or a big order talk you out of it.
Define the triggers in advance so the decision is a checklist, not an argument.
The stop-credit decision checklist
- Is the account over its credit limit?
- Is it more than [policy] days past due?
- Has a payment been dishonoured?
- Have agreed payment promises been broken?
- Is there adverse credit news or an insolvency signal?
- Have reminders and a call already gone unanswered?
- Decision: [ ] Place on stop [ ] Final warning first [ ] Continue
- If stop: pending orders held, customer notified, reason recorded
- Condition to lift stop defined (balance cleared / plan agreed)
- Escalation point to external recovery set
How to use it
Tie the triggers to the thresholds in your credit policy so stops happen automatically rather than by mood. When you place a stop, tell the customer plainly and professionally: state the balance, that supply resumes once it is cleared or a plan is agreed, and the date. Record the reason on the account.
If a stop does not produce payment, do not let the balance keep ageing — refer the debt for recovery on a commission-only basis with no upfront fee.
This is general business information, not legal advice.
Tips
- Continuing to supply a non-payer only grows your exposure — stopping is a lever.
- Define stop triggers in advance so the decision is a checklist, not an argument.
- Communicate a stop clearly and state exactly what lifts it.
- If a stop does not produce payment, escalate to recovery rather than waiting.
FAQ
Won't stopping supply lose me the customer?
A customer who will not pay is already costing you. A clear stop often prompts payment faster than more polite reminders.
When should I place an account on stop?
When it hits the triggers in your policy — over limit, well past due, a dishonoured payment, or broken promises after follow-up.
What lifts a stop?
Define it up front: the balance cleared in full, or a firm written payment arrangement that is then honoured.
Templates are a head start — not legal advice
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