Short answer. Set a maximum amount each client can owe you, and a date by which each invoice should be paid. Before you accept a new order, check the client's current dues against both. ResellerSuite can block an order that goes over the limit or is overdue past its pay-by date, and an Owner or Admin can override it with a written reason.
Why one client can sink a small distributor
A distributor often has a handful of large buyers. If one of them stops paying, there may not be enough cash left to buy stock for the others. The sales feel good until the payment is due, and then the real exposure shows.
A credit limit is a simple rule that keeps that risk visible before it becomes a loss.
How to set a sensible limit
Start with what you can afford to lose and still operate. Decide a percentage of your working capital that any one client may owe. A new client gets a low limit or advance payment. A client with a clean record gets more over time.
Look at their history: how many days they take to pay, how often they dispute, and how big their orders are compared with what you ask them to owe.
Set payment terms in writing
A limit is only half of the rule. The other half is time. 'Payment within 30 days' or 'advance before dispatch' should be written on the quote and the proforma. Then 'overdue' has a clear meaning for both sides.
Consider part payment before dispatch for large orders, and the rest on delivery.
Check before every order
The best moment to apply the rule is before you raise the order, not after the goods are packed. Check the client's total unpaid amount, add the new order, and compare it with the limit. Also check whether anything is past its pay-by date.
In ResellerSuite this check runs on the server when you raise or re-open an order. If the order would go over the limit, or the client has an overdue amount past the pay-by date, it is blocked. An Owner or Admin can override with a reason, and the override is recorded in the activity log.
Follow up before it becomes a problem
Chasing early works better than chasing late. The Money page shows what is due today and what is overdue, by age. You can send a reminder by WhatsApp or email from there, with a message that includes the amount and the link to pay.
Keep the tone polite and specific: the invoice number, the amount, the date. See also how to follow up on WhatsApp.
A worked example
A distributor sets a limit of Rs 5 lakh for a regular dealer, with payment terms of 30 days. The dealer already owes Rs 3.5 lakh, of which Rs 80,000 is ten days overdue. A new order for Rs 2 lakh comes in. The total would be Rs 5.5 lakh, over the limit, and part of the existing amount is overdue.
The easy answer is to ship anyway because the dealer is a friend. The better answer is a conversation: ask the dealer to clear the overdue Rs 80,000, accept the order after that, or send half now. If the owner decides to ship anyway, the system asks for a reason, and the reason is saved. Nobody has to remember later why an exception was made.
Signs a client is becoming a risk
Payments slowing from 30 days to 45 to 60. Partial payments with no explanation. Disputes about goods already accepted. Sudden large orders from a client who used to order small. A change in the person you deal with. None of these means you should stop selling, but each is a reason to review the limit and to ask for part payment up front.
A short policy you can copy
New clients: advance or part advance for the first two orders. After three clean payments: a starting limit. Limit review every quarter. Orders over the limit need the owner's approval. Dues past the pay-by date stop new orders until cleared. Write it on one page and share it with your sales team so nobody promises a client something the business cannot afford.
The policy is not about distrust. Clients who pay on time are rewarded with higher limits, and clients who understand the rules rarely feel offended by them.
What to do when a limit is reached
Do not simply say no. Offer options: pay the overdue amount first, pay part in advance, or reduce the order size. Record the decision so the next person on your team knows what was agreed. Review limits every few months, upwards for good payers and downwards for slow ones.
See the features for how orders, money and permissions fit together.
Frequently asked questions
What is a credit limit?
The most a client may owe you at one time. New orders that would take them above it need a decision.
Can I override the limit for a trusted client?
Yes. In ResellerSuite an Owner or Admin can override with a reason, and it is audited.
Does ResellerSuite check overdue payments?
Yes. It can block an order when the client has dues past their pay-by date.
How often should I review limits?
Every few months, and after any late or disputed payment.