What it means is that person in particular had missed a payment or two before on a credit card or a loan.

It can also mean that a certain credit limit was allocated to them, per example, $1,000.00 per 28 days (remember, AMEX's full balance was payable every month) and that they have:

1) exeeded thee allocated credit limit or
2) have reached the limit and have not paid the full balance due

What you can do in order to secure funds for your corporation is ask for a deposit on account. If your business exposure with this client is approximately $2,000.00 / month, then ask for that much as a deposit….. Always cover your tracks and back. Keep in mind that people go bankrupt daily and no body is immune.

Hope this helps