credit limit

Finance

total amount somebody is allowed to borrow the highest amount that a lender will allow somebody to borrow, for example, on a credit card.

Related definitions of "credit limit"

Also called credit ceiling

Recommended Further Reading (Term count)

Invoicing and Credit Control for Small and Medium-Sized Enterprises
This checklist outlines invoicing and credit control for small and medium-sized enterprises (SMEs).
Preparing Financial Statements: Profit and Loss Accounts (P&Ls)
This checklist outlines the ways profit and loss accounts (P&Ls), or income statements, are prepared in financial statements.
Defining the Financial Manager’s Role
This checklist outlines the role of the financial manager.
Managing Counterparty Credit Risk
by David Shimko
Counterparty risk is the risk to each party of a contract that the counterparty will not live up to its contractual obligations; it is otherwise known as default risk.Counterparty risk relates closely to performance risk. It arises whenever one entity depends on another to honor the terms of a contract. If a parts supplier fails to provide steering wheels to General Motors, GM will be damaged because of its inability to deliver complete cars....

Definitions of ’credit limit’ and meaning of ’credit limit’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’credit limit’ and other financial terms with our online QFINANCE Financial Dictionary.

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