--- title: "What Is a Credit Hold on a B2B Order?" url: https://www.uncap.com/glossary/credit-hold author: "Denis Dyli" published: 2026-10-28 updated: 2026-10-28 summary: "A credit hold is a block a seller places on a B2B customer's sales order so it cannot move forward until someone reviews the customer's credit. Triggers include an exceeded credit limit and overdue invoices. Once the issue is resolved, someone releases the order so it can be processed, or rejects it." --- # What Is a Credit Hold on a B2B Order? > A credit hold is a block a seller places on a B2B customer's sales order so it cannot move forward until someone reviews the customer's credit. Triggers include an exceeded credit limit and overdue invoices. Once the issue is resolved, someone releases the order so it can be processed, or rejects it. **Credit hold**: A credit hold is a block a seller places on a B2B customer's sales order so it cannot move forward until someone reviews the customer's credit. Triggers include an exceeded credit limit and overdue invoices. Once the issue is resolved, someone releases the order so it can be processed, or rejects it. ## How it works A credit hold stops a B2B sales order before it moves forward, so the seller can check the buyer's credit first. Microsoft's documentation for Dynamics 365 Finance describes one ERP's version. When a customer initiates a sales transaction, the system reviews the sales order against a set of blocking rules, which guide whether to extend credit and allow the sale to move forward. Exclusion rules can override them. In Dynamics 365 Finance, reasons a sales order can go into the credit management hold list include: - The customer has an invoice that is overdue for a specified number of days. - The customer has an expired credit limit. - The customer has an overdue amount and has used a specified percentage of its credit limit. - The sales order exceeds a certain amount. - The customer exceeds a certain percentage of its credit limit. - The payment terms or settlement discounts differ from the customer's defaults. **A credit hold in Dynamics 365 Finance** ### 1. Order, Sales order checked The system reviews the sales order against the blocking rules when the customer initiates a sales transaction. ### 2. Hold, Credit management hold list A blocked order goes to the hold list, which shows each order's blocking reason. ### 3. Resolve, Reason addressed Reasons can change while the order waits, for example when a customer pays their bill and frees up credit. ### 4. Release, Released or rejected After you address the reasons, you release the order for further processing, or reject it. ## Releasing a held order Dynamics 365 Finance offers two release options. With posting removes the hold and posts the document using the same posting process used when it was placed on hold. Without posting removes the hold without further processing, and the order can be posted manually. An Evaluate for release action reviews the hold list and can release orders automatically when the reason for the hold is resolved, and credit management workflows can require approval before release. These steps are Microsoft's for Dynamics 365 Finance. This is general information, not financial advice. ## Example A distributor sets a $50,000 credit limit for a contractor account. - Open balance: $46,000 - New order: $7,500 - New balance: $46,000 + $7,500 = $53,500, which is $3,500 over the limit The order goes on credit hold. The contractor then pays a $10,000 invoice. The balance with the new order is now $53,500 minus $10,000, or $43,500, which is under the limit, and the order is released. ## On Shopify Shopify B2B, on the Basic, Grow, Advanced and Shopify Plus plans, lets you review orders before you accept them at the company location level: - Drafts for review: if you want to review orders before you accept them, then you can require that customers submit their orders as drafts, with the company location checkout option Submit all orders as drafts for review. - Where they land: you can find these orders in the Drafts page of your Shopify admin. They aren't complete until you click Create order, or until the customer submits payment after you send them an invoice. - Only some orders: to submit only certain orders as drafts based on specific criteria, such as order value or cart contents, Shopify suggests the Payment Customization Function. ## How Uncap helps Uncap's guide to [Shopify B2B ERP integrations](/post/shopify-b2b-erp-integrations) notes that most distributors Uncap works with manage credit in the ERP, so the storefront has to ask before it accepts an order on terms. Its guide to [Shopify net terms](/post/shopify-net-terms) adds that credit checks, credit limits, dunning and AR aging stay a back-office decision, usually run in the ERP and synced to which companies get terms. ## Related terms - Trade credit - Net 30 - Accounts receivable - Dunning - Sales order ## Sources - Microsoft Learn: Credit holds for sales orders (Dynamics 365 Finance) - Shopify Help Center: Creating B2B orders using draft orders ## Frequently asked questions ### What is a credit hold? In B2B selling, a credit hold is a block a seller places on a customer's sales order until the customer's credit is reviewed, for example because the order would take the account over its credit limit or the customer has overdue invoices. ### How do credit holds work? A credit hold works by checking each sales order against rules such as credit limit, overdue days and payment terms. In Dynamics 365 Finance, a blocked order goes to a credit management hold list with its blocking reason, and someone releases or rejects it once the reason is addressed. ### How do I remove a credit hold on a sales order? A credit hold on a B2B sales order is removed by resolving the reason, such as paying an overdue invoice, and then releasing the order. In Dynamics 365 Finance, you select the order in the hold list, choose a release reason, and release it with or without posting.