Enter your idea

This seems like something that should be very high on the list for Xero.

The fundamental issue is that a credit limit and a credit stop are two completely different things. A credit limit protects a business from allowing a customer's outstanding balance to exceed a predetermined monetary amount. A stop/hold protects the business when a customer has failed to pay within the agreed terms.

For example, a customer could have a £50,000 credit limit but have a £2,000 invoice that is 90 days overdue. Under the current approach, that customer can still have plenty of "available credit", but from a credit-control perspective they may already be a significant risk. The fact that they haven't reached their monetary credit limit doesn't change the fact that they haven't paid what they have already been invoiced for.

This is why using the credit-limit function as a workaround isn't really an answer. It forces businesses to manipulate a credit-limit setting to achieve something completely different from what that setting is designed to represent.

What businesses actually need is a customer status/hold function, for example:

Active – customer can be invoiced normally.

Credit warning – customer has overdue invoices and staff are warned when creating an invoice.

On Stop / Credit Hold – new invoices, quotes or orders cannot be progressed without appropriate authorisation.

Released – an authorised user can temporarily override the stop where there is a legitimate business reason.

Ideally, the stop could also be triggered automatically based on agreed payment terms — for example, "put this customer on stop if an invoice becomes more than 30 days overdue" — while still allowing an authorised manager to override the restriction when necessary.

This isn't simply a convenience feature. It is a credit-control and cash-flow control.

If Xero is going to provide businesses with information about overdue balances, credit limits and outstanding invoices, it seems logical that there should also be a mechanism to act on that information. Otherwise, the system is telling us that a customer is overdue, but leaving the final control entirely to a member of staff remembering to check that information before processing the next transaction.

That creates unnecessary manual processes and, more importantly, creates the possibility of human error. A sales or invoicing employee may quite reasonably see that a customer is £2,000 overdue but still has £48,000 of available credit and continue processing invoices. The finance team may have made a completely different decision about whether that customer should receive further credit.

A proper stop/hold function would allow the credit-control decision to be made once and enforced consistently across the business, rather than relying on everyone remembering to check notes, reports, emails or another CRM system before every transaction.

The fact that this request has been raised repeatedly for years should also tell Xero something about the underlying need. There are comments here from users who have been asking for this since well before this particular idea was created, and there are still users commenting in 2026 that they need it. The older Xero idea for an automatic credit hold has also accumulated 93 votes.

Xero has previously said that it doesn't currently plan to develop this functionality, while continuing to track the demand.

I think this is precisely the sort of feedback that should cause that decision to be reconsidered.

Please don't treat this as another request for a slightly different credit-limit setting. A credit limit is not a credit stop.

Businesses need the ability to say:

"This customer currently owes us overdue money, therefore no further credit is to be extended unless an authorised person explicitly releases the account."

That is a very different requirement, and it is one that would have a direct and practical impact on credit control, cash flow, risk management and internal processes.

Please reconsider this feature and, at the very least, give users some indication of whether Xero intends to address it. After this many years of requests, "use the credit limit as a workaround" really isn't an adequate solution.

I agree, here we are another 3 years on, and this option is still not available, it is standard accounting & critical to cash management.

Can XERO prevent us raising a new quote? Raising a new sales invoice it is already too late.

The function has not been implemented yet. Nothing has been done to support the XERO users. Thank you for your reply.

Natasha Delport - Nice assumption, even if it's wildly incorrect. I was basing my comment on the OP being 3 years old, poster stating he had been asking for 6 years & then rounding up. Nice trolling though

Karren Williams, This is major disappointing to hear that you have been struggling over 10 years with XERO and they have not given this Issue any attention. This makes me think about other options.

Well this is disappointing that this concern hasn't been addressed in what looks like well over 10 years. Clearly Xero not listening to their users

David, I agree. Once over their terms zero should Stop supplies to the Customer, same when they have reached the credit limit. That is why the function is there. I feel Zero should respond to the Terms and Credit limit. It is Critical.

even the most basic accounting systems have a hold facility

This is such an important function in Debtors. What is the meaning of getting a credit limit if Xero keep on supplying over the limit. Xero should have the option to stop supplying a customer when the limit is reached or at least before they reached the credit limit. Once an invoice is created, there should be a pop up message that tells you - Customer reached credit limit. Then it should be up to the Debtors / Financial Manager to Approve/ release the invoice.

I can't understand why this is not a function in Xero. It is critical for any business to have this. Setting credit limits is not the answer.

Came here to see if it was a function I just couldn't find yet it seems to have been asked for quite some time yet no response from Xero?

I came here today to look for this exact feature. Surprised it isn't available already. Need to put a customer stop and for it show on the statement.

Why is Xero not listening to us.

It's so important to have the option to place customers on hold.

We are considering changing to sage

Please please please can this feature be added.
It is critical in our business.
Manual workarounds, like credit limits are being overridden by Invoicing users.
A hold function, that can only be changed by a higher user is urgently needed

This is a critical business function that we all need, Xero please can you sort this !!

Still waiting. come on Xero, get your act together.

I can't believe this isn't part of the basic make up of the customer ledger. Why can't a stop or on hold functionality be added? Credit limits alone do not resolve the issue

I have just changed from Sage to Xero.
To have no way of placing a customer on hold is costing us money!!
Please get this sorted Xero ASAP!!!

Xero, please can you get this option added as it would be beneficial to all businesses. Our CRM software can do this but not Xero, which is very frustrating and causes additional work to go and check the CRM system before processing an order/invoice on Xero.

Plus it would be useful if we could run a report that would list all those who are on hold and the date that they were put on hold - maybe not as essential as having the function but could be added to the development of this feature.