[Overview] Company credit limit

Overview

Company credit limit is an extension that allows merchant to extend a line of credit to a B2B company. This includes:

• Set a total Credit Limit to control financial exposure for each B2B company

• Follow all credit transactions, purchases, payments, and outstanding balances in real-time

• Automatically track credit activity to populate the Available Credit in real-time as new orders are placed and payments are made.

• Automated checkout validation process that checks available credit before complete an order on Net terms.

Leverage Shopify's latest Customer Account updates, specifically designed to support B2B businesses. This integration enhances the overall B2B experience and provides a more cohesive and powerful toolset for wholesale clients.

Use cases

B2B credit limit is ideal for:

• Established B2B relationships—Long-term business customers with proven payment history.

• Large enterprise customers—Companies making significant, regular purchases requiring extended payment terms.

• Supply chain partners—Distributors, resellers, and channel partners requiring credit facilities.

Why this solution matters

This integrated solution is foundational for any merchant serious about scaling their B2B operations on Shopify Plus.

• Mitigate financial risk: Automated credit limit enforcement is the single most effective way for merchants to control their exposure to bad debt.

• Enable sales & reduce friction: A clear and automated credit system empowers trusted customers to purchase freely up to their limit without needing manual approvals, accelerating the sales cycle.

• Reduce accounts receivable workload: A self-serve store ledger reduces inquiries from customers about their balance, and payment status, freeing up the merchant's finance team.

Some limitations

Before implementing B2B Credit limit for your store, please consider these limitations of the function in order to take the most out of it and limit the chances for edge cases.

Since our app is built entirely on Shopify and Shopify B2B Primitives, there will be some limitations from Shopify that prevent us to reflect correctly.

1. The credit limit function will only work on orders with specific payment terms set within company location, including:

• Net 7

• Net 15

• Net 30

• Net 45

• Net 60

• Net 90

2. For orders on payment term as:

• Due on fulfillment

• Due on receipt

• Due on fixed date

The payment term data only becomes available upon fulfillment/receipt or date which is not identified on order placement -> This is why these specific cases are currently deferred/unhandled.

Furthermore, the credit limit function does not support Due on Receipt and Fixed Date payment terms because these settings are not configured at the company location.

3. We recommend that once an order is placed using net terms, the merchant should limit modifications to the net terms on that order as much as possible. This is to avoid unexpected errors while recording transactions related to payment and credit top-up