It's possible to set a credit limit against each customer in the system.
A customer's credit limit is used when calculating their available balance, which can be seen on the left-side of the screen.
This available balance can also be used to trigger a customer warning, if the balance is too low.
Note that the user role Allow Customer Credit Limit Changes is required if you want
to make manual changes to a specific customer's credit limit.
Users of some external system integrations may also notice that customer credit limits are pulled from that system.
Setting a default credit limit for new customers
It's possible to define a default credit limit for any new customer records that are created.
The Credit Limit field can be found in Settings - Company Setup, on the first tab. This will determine the default credit limit for new customers.
Changing this value will not affect existing customer records. It will be used for:
customer records that are created directly
customer records that are converted from leads, including:
manual conversion from the lead record
automatic conversion when a quotation is won
Note that, if you are converting a lead manually from the lead record itself, you have the opportunity to override the default credit limit before conversion.
The credit limit can also be changed from the customer record after conversion.