What is Trade credit limits?
Trade credit limits are the maximum amounts individual business customers may owe a seller when buying on deferred payment terms. The buyer receives the goods and an invoice due in, say, 14 or 30 days, and the system makes sure their open invoices, often together with accepted orders not yet invoiced, stay within the agreed limit. Once the limit is exceeded or invoices are overdue, further purchases on credit are usually put on hold.
How we use it at Koda Plus
In B2B wholesale stores we support deferred payments with trade credit limits: the system tracks the balance, blocks orders that would exceed it and shows unpaid invoices. Balances and settlements stay in the ERP, so in Medusa.js stores we add the credit limit as custom logic that pulls them through an integration. When the limit is exceeded, the cart can be blocked, sent to an account manager for approval or switched to prepayment – we shape the logic around the seller's process. In B2B mobile apps we sync credit limits with the ERP together with customer price lists.
When it makes sense
- You sell to businesses on invoice with payment terms
- Sales reps track customer balances in spreadsheets
- You want to limit the risk of unpaid invoices when selling online
- Balances and settlements are kept in Subiekt GT or Comarch Optima