Credit-to-Cash
Quick answer
The extension of Order-to-Cash that starts from the customer's credit check and runs to payment collection.
Key takeaways
- Credit assessment and limit setting
- Automatic balance check on every order
- Release/hold on risk rules
- Invoicing, collection and cash application
What Credit-to-Cash is
Credit-to-Cash (C2C) is the extended commercial flow that begins before the order, with customer credit assessment and limit, and continues through order, invoicing, collection and payment. It adds the credit-risk dimension to Order-to-Cash.
Why it matters to the board
A sale isn't complete until it's collected. Credit-to-Cash ties credit policy to operations: it prevents exposure to risky customers, but also the needless blocking of good orders - a direct balance between growth and risk.
Key steps
- Credit assessment and limit setting
- Automatic balance check on every order
- Release/hold on risk rules
- Invoicing, collection and cash application
How CRMconnect helps
CRMconnect automatically checks the credit limit and balance at order entry, safely releases orders on rules and escalates only exceptions - without the sales team waiting on manual approvals.
Real-world example
A manufacturer manually held orders over the credit limit, with hours of delay. With automatic risk-rule release, safe orders passed instantly and only real cases reached finance.
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Frequently asked
Credit-to-Cash vs Order-to-Cash?+
Order-to-Cash starts from the order; Credit-to-Cash adds customer credit assessment and control up front, embedding risk into the commercial flow.
How do I avoid blocking good orders?+
Through automatic balance checks and release rules, so only genuinely risky orders are stopped for review.
Where CRMconnect fits
Related terms
Order-to-Cash (O2C)
The end-to-end cycle from order receipt to invoice payment. A key cash-flow health indicator.
B2B commerceCredit limit & balance
Commercial exposure control: the portal checks the customer's credit limit and balance before accepting the order.
OperationsCash Application
The flow of matching received payments to their corresponding invoices, to correctly close receivables.
FinanceDSO (Days Sales Outstanding)
Average number of days from invoice issue to cash collection. Key cash-flow indicator.