Currently credit hold is applied to all sales based transactions for a particular customer; quotes, orders and invoices. The workaround to this is: take the customer off credit hold, record the quote...
I thoroughly agree that quotes should be allowed even though the customer is on credit hold. A quote does not mean that you have any inventory beiing despatched and it is not a sale, possible potential sale - only when the customer is not in arrears. Absolute inconvenience when you (or staff) have to remove off credit hold to quote and hopefully remember to put the credit hold back on afterwards.