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It's time for Jacob to #JargonBust and this week he's talking about Credit Limits! 📈 "Credit limits show the amount of funding a lender is willing to provide on individual customers at any one time. It will vary from customer to customer, depending on their strength. If your outstanding balance with a customer goes above your credit limit, the funding will be capped at the credit limit. You would not receive an advance on balances above the credit limit. This effectively lowers the prepayment you receive, but you would still pay your service fee on this amount. When looking at an invoice finance facility, it is key to ensure the lender can get sufficient credit limits. Credit limits can vary from lender to lender, due to different lenders using different credit reference agencies and credit insurers. Even if one lender is restrictive, there may be other options." Have you got any #financejargon you'd like Jacob to break down? Drop it in the comments! 👇

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