# Wholesale step 3: credit customers, limits, terms

> Open trade accounts with a customer group, credit limit and pay term, sell on credit, collect payments and chase overdue invoices by age.

Source: https://docs.smartposhub.com/business-types/wholesale/step-3-credit-customers-limits-and-terms/  
Last updated: 2026-10-30  
Product: SmartPOS Hub (https://smartposhub.com)

Almost every wholesale customer buys on account. Good credit control is what keeps a distributor alive: a sensible limit per shop, clear terms, and a weekly look at who is late. This page sets it up.

## Before you start

- Customer groups and price groups exist ([step 2](https://docs.smartposhub.com/business-types/wholesale/step-2-cartons-units-and-price-groups/)).
- Optional: a **Default credit limit** in **Settings › Business Settings › Contact**.

## Open an account

1. Open **Customers › Customers** and click **Add** (or **Customers › Import Contacts** for many at once).
2. Enter the **Business Name** (for example Hyderi Family Mart), contact person, phone and address.
3. Choose the **Customer Group** (Key Account, Sub-Distributor, Retailer).
4. In **Balance and credit**, set **Pay term** (for example 30 Days), **Credit Limit** and any **Opening Balance** they already owe you.
5. Save.

![Customer form Balance and credit section with opening balance, pay term in days and credit limit](https://docs.smartposhub.com/_astro/customer-balance-and-credit-fields.DN17Zblg.png) (web app page: `/contacts?type=customer`)
*Pay term and credit limit on the customer.*

![Customers list searched for Mart showing Baldia Pak Mart with a 200,000 limit and 15 days term, Hyderi Family Mart with 450,000 and 30 days, and Al-Rehmat Mart with 600,000 and 30 days](https://docs.smartposhub.com/_astro/customers-credit.h4vsiogL.png) (web app page: `/contacts?type=customer`)
*Trade accounts with their credit limit and pay term.*

## Sell on credit

In **Sell › Add Sale** or the POS, choose the customer (their price group applies), add cartons, then save with no payment or a part payment (**Credit Sale** in the POS). Over the limit, the sale is refused:

![Credit limit reached message showing the limit, the amount already due and this sale](https://docs.smartposhub.com/_astro/credit-limit-exceeded-warning.CgodUQDp.png) (web app page: `/pos/create`)
*The sale is refused when it would go over the limit.*

## Collect and chase

- **Payment from a shop:** customer page **Add payment** or **Pay** in the list; **Receive Payment** in the POS.
- **Overdue list:** **Reports › Payment by Age**, by customer, payment method, location and age band.
- **Balances:** **Reports › Supplier & Customer Report** shows total sale, total paid, opening balance due and due per customer.
- **Reminders:** the payment reminder button in the sale's **View Payments** window, or automatic reminders in **Notification Templates** (e-mail or SMS, if set up).

![Payment by Age report with filters for customer, payment method, location, user and age, and unpaid amounts per customer in age columns 1-15, 15-30, 30-45, 45-60, 60-75 and 75-90 days](https://docs.smartposhub.com/_astro/payment-by-age.BzYxzBaG.png) (web app page: `/reports/payment-by-age-report`)
*Reports › Payment by Age: who owes what and for how long.*

## Tips and mistakes to avoid

- Start new shops with a low limit and raise it after a few months of on-time payment.
- Record cheques with the cheque number and date; post-dated cheques should be entered when they clear.
- Never delete an invoice to "clear" a balance; record a payment or a sell return.

Next: [step 4: sales orders and invoices](https://docs.smartposhub.com/business-types/wholesale/step-4-sales-orders-and-invoices/).

  - [Credit and part payments](https://docs.smartposhub.com/selling/credit-and-partial-payments/)
  - [Credit limits and advances](https://docs.smartposhub.com/selling/customer-credit-limits-and-advances/)
  - [Customer ledger](https://docs.smartposhub.com/customers/customer-ledger/)
  - [Customer portal](https://docs.smartposhub.com/customers/customer-portal/)

## Frequently asked questions

### What does the credit limit include?

The unpaid amount of the customer's final sales plus the new sale. Drafts, quotations and sales orders are not counted. If the total would go over the limit, the sale is refused.

### Where is the due date set?

From the pay term on the sale, which comes from the customer (for example 30 Days). Turn on Is pay term required? to make sure every sale has one.

### How do I collect from a shop with ten open invoices?

Open the customer and press Add payment, or Pay in the customers list. The amount is applied to the open invoices, oldest first.

### How do I see who is overdue?

Reports › Payment by Age groups unpaid invoices by days overdue (1–15, 15–30, 30–45 and so on) per customer.

### Can a customer pay in advance?

Yes. A payment bigger than the balance is kept as an advance and used later with the Store credit (advance) payment method.

### Can customers see their own statement?

Yes, with the Customer & partner portal. They see invoices, payments and their balance.