All 22 Credit Control questions
More in Credit Control
How do you assess a customer's creditworthiness? What is a credit hold and when is it applied? How do credit terms influence sales and cash flow? What is the order-to-cash cycle and where does credit control fit? How should credit limits be reviewed and adjusted over time? How does a credit policy document support consistent decisions? What external data sources inform credit decisions? How should credit be handled for export/international customers? How do deposits and prepayments reduce credit risk? How do you build or use a credit scoring model?
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Accounts Payable & Receivable › Credit Control

How is credit exposure monitored on an ongoing basis?

Intermediate

Answer

Monitor total outstanding vs limit per customer, aging trends, order pipeline against available credit, changes in payment behavior, and external alerts (credit-score downgrades, adverse news). Dashboards and automated alerts flag customers approaching limits or deteriorating, prompting limit reviews, holds, or tighter terms before losses occur.
Real-world example An alert fires when a customer's utilization hits 90% of its limit and its DSO worsens, prompting a proactive review.

Common follow-ups: What signals rising customer risk? | How does exposure monitoring prevent losses?

Aging Analysis Collections & Bad Debts Credit Control
All 22 Credit Control questions