Trade creditin practice.

Selling on deferred payment is normal in wholesale. Trouble starts when the limit is in the owner's head, the balance in the accounting program, and the decision to release goods is made by feel.

Three figures that must agree

The limit is the maximum exposure to a company. The balance is the sum of unpaid documents. The available limit is the difference, the only figure a sales rep cares about when taking an order. All three must be calculated in one place, otherwise a dispute with the customer is won by whoever has the better spreadsheet.

What happens when the limit is exceeded

• Block with a stated reason: safest with buyers you do not know well.
• Approval by the sales rep or sales manager: nothing ships without a human decision.
• Let it through, flagged and notified: for buyers with a long history and in peak season.

Whatever you choose, decide it before launch, not at the first overrun. And show the customer the reason, not an error message: a buyer who sees which invoice to pay calls accounting, not a competitor.

Due dates: remind before it is too late

An invoice the customer was reminded about before the due date is usually paid on time. The same invoice after a month of silence becomes a conversation nobody wants. Do not set one limit for everyone, and do not calculate the balance anywhere other than accounting.

How it works in Torveo

The limit and balance are part of the company account: the buyer sees them after logging in, on the credit tab, together with the list of invoices. If you keep settlements in your ERP, the balance comes from the program so there is no second source of truth. We agree the overrun rule with you during setup.

When the sales rep and the customer see the same figure, decisions stop being a matter of feel.