What Does "Account on Stop" or "Credit Hold" Mean?
An account on stop (also called a credit hold or stop credit) means your supplier has paused new orders on your trade account until something is fixed, almost always an overdue invoice or a balance over your credit limit. The account isn't closed. Once the overdue amount is paid or a payment plan is agreed, most NZ suppliers release the hold within a day.
What Happens When Your Account Is on Stop
- New orders are held. The counter won't release goods on account and online orders won't process, though most suppliers will still sell to you for cash or card.
- Existing invoices still stand. Everything you already owe is still due on its original terms.
- Interest or fees may apply. If the supplier's terms of trade allow it, overdue amounts can attract interest and collection costs.
- Your credit file isn't touched yet. A credit hold is an internal decision by the supplier. Reporting to a credit bureau usually only happens if the debt goes much further overdue or to collections.
Why Accounts Get Put on Stop
| Reason | What the supplier sees | Usual fix |
|---|---|---|
| An invoice is overdue | A balance past its due date, often after the 20th | Pay the overdue amount or agree a date |
| Over the credit limit | Total owing is more than the approved limit | Pay down the balance or ask for a limit increase. See how trade account credit limits work |
| A payment bounced | A dishonoured direct debit or reversed payment | Pay again and confirm your bank details |
| Paperwork missing | An expired guarantee, or changed company details | Update the account application |
| Disputed invoice | An unpaid invoice that you're querying | Pay the undisputed part and put the dispute in writing |
How to Get Your Account Released
- Call the supplier's credit team, not the sales rep. Ask exactly what's needed to lift the hold: the full overdue amount, or just part of it.
- Pay what you can today and commit to a date for the rest. A part payment with a firm date is often enough to get the hold lifted.
- Send a remittance advice so the payment is matched to the right invoices straight away. See what a remittance advice is.
- Ask for written confirmation that the account is open again before placing the next order.
Example: a Napier builder's account with a timber merchant is put on stop on 22 May because $14,600 from April wasn't paid on the 20th. The builder pays $5,000 that day, agrees to clear the rest by 6 June, and the merchant lifts the hold the same afternoon so the next frame delivery goes out on time.
How to Stop It Happening Again
Most holds come from one large invoice landing in a tight month, not from a business that can't pay at all. Timing your payment run before the 20th, keeping an eye on how close you are to your limit, and spreading large invoices over several months all reduce the risk. If you need stock urgently while an account is on hold, the NZ supplier directory lists other suppliers by category and region. For the bigger picture, see what happens if you default on a trade account.
Frequently Asked Questions
Is a credit hold the same as an account on stop?
Yes. Credit hold, account on stop, stop credit and account suspended all describe the same thing: the supplier has paused new credit orders until the account is brought back within its terms.
Does a credit hold affect my credit rating?
Not on its own. It's an internal step by the supplier. It can lead to a credit file listing if the debt stays unpaid long enough to be passed to collections or legal action.
How long does it take to get off credit hold?
Often the same day. Once the overdue amount is paid, or a payment plan is agreed with the credit team, most NZ suppliers release the hold within one business day.
Can I still buy from a supplier while my account is on stop?
Usually yes, for cash or card. What stops is buying on account. Some suppliers will also ask for cash with order on a large order until the account is back in good standing.
Can a supplier put my account on stop without warning?
Yes, if their terms of trade allow it, and most do. Many send a reminder or statement first, but they aren't required to. Read the credit terms you signed when the account was opened.
