diff --git a/electrum/lnutil.py b/electrum/lnutil.py
index 20e6025a4..11de3c1a7 100644
--- a/electrum/lnutil.py
+++ b/electrum/lnutil.py
@@ -107,7 +107,7 @@ class Config(StoredObject):
             raise Exception(f"max_accepted_htlcs too high: {self.max_accepted_htlcs}")
         if self.to_self_delay > MAXIMUM_REMOTE_TO_SELF_DELAY_ACCEPTED:
             raise Exception(f"to_self_delay too high: {self.to_self_delay} > {MAXIMUM_REMOTE_TO_SELF_DELAY_ACCEPTED}")
-        if self.max_htlc_value_in_flight_msat < min(funding_sat, 100_000_000):
+        if self.max_htlc_value_in_flight_msat < min(1000 * funding_sat, 100_000_000):
             raise Exception(f"max_htlc_value_in_flight_msat is too small: {self.max_htlc_value_in_flight_msat}")