Credit limits for B2B companies in Shopify

You sell wholesale on Shopify and let some companies buy on payment terms, such as Net 30 or Net 60. You want a credit limit for each company, so new orders are blocked when its outstanding amount would go over that limit. Here is what Shopify provides, where manual processes fall short and how to apply a limit at checkout.

What Shopify B2B does natively

• Companies and locations. Each B2B company can have one or more locations. Shopify B2B is available on Basic, Grow, Advanced and Plus plans, but not Starter or Retail.
• Payment terms per location. A location can use payment terms such as Net 7 to Net 90, a fixed due date or due on fulfillment. Orders show a due date and remain “Payment pending” until paid.

Where the manual approach falls short

Shopify payment terms do not calculate a company's total outstanding amount or block checkout when a new order would exceed a credit limit you set. Merchants often:

1. keep a spreadsheet of each company's outstanding amount and check it before fulfilling an order;
2. review new orders manually when a company reaches its credit limit, then remember to release them when appropriate;
3. remove payment terms from a location, which also affects buyers who pay on time.

Each option relies on someone checking the details and taking action every time.

How to apply a credit limit at checkout

Shopify checkout rules let apps add checks to checkout. A credit-limit rule needs three things:

1. The company's outstanding amount: the unpaid total across its orders on payment terms, minus partial payments and refunds.
2. The credit limit: one amount for each company, or a default amount for your store.
3. The checkout check: if the company's outstanding amount plus the new order is more than its credit limit, checkout is blocked. The buyer sees why and how to resolve it, such as paying an overdue order or contacting your team.

A useful setup also lets you make exceptions, such as allowing one order or temporarily changing a company's limit, and keeps a record of those changes.

A simple policy to start with

• Set limits using payment history. About 1.5 times a company's usual monthly spend on payment terms can be a starting point; consider a lower limit for companies that often pay overdue.
• For new companies, consider requiring payment before fulfillment for the first one or two orders. You can then offer payment terms with a modest credit limit.
• Review credit limits every quarter, rather than checking each order individually.
• Explain the policy before it applies. For example: “Orders over your credit limit require payment of outstanding invoices before checkout.”