Credit limits
Scope: company or location
Section titled “Scope: company or location”By default a limit belongs to the company – all locations share one pot, because that’s how the legal entity owes you money. For buyers whose branches order independently, switch a company to per-location limits; each location then has its own limit and exposure, and the company view shows the roll-up.
Companies › Aldgate Homeware Co
Aldgate Homeware Co Approved
Currency
Section titled “Currency”Limits are held in your store currency. Orders in other presentment currencies count toward exposure at the exchange rate Shopify records on the order. Displayed amounts are always in store currency.
Setting and changing limits
Section titled “Setting and changing limits”Set the limit at approval; change it any time from the company’s credit page or directly from the Transactful panel on the Shopify company screen. Changes take effect at the next checkout – within seconds. Every change is recorded (who, when, old → new, optional reason) on the company timeline.
Raising a limit needs no ceremony. Lowering it below current exposure is allowed – the buyer simply can’t order until they pay down below the new limit; the checkout message shows available credit as £0.00 (never negative).
Temporary limits
Section titled “Temporary limits”For seasonal buying (“they need £30k for Christmas stock”), set a temporary limit with an end date. It supersedes the base limit until expiry, then reverts automatically. The timeline shows both.
Safety buffer
Section titled “Safety buffer”The buffer reserves headroom against the seconds-wide sync window and multi-order sprees: available = limit − exposure − buffer. Configure it store-wide as a percentage of each limit (default 5%) or a fixed amount per company. Buyers never see the buffer – only their available credit.
Starting limits: a rule of thumb
Section titled “Starting limits: a rule of thumb”Expected monthly order value × months outstanding on their terms × a confidence factor (50% new / 75% some history / 100% established). The credit limit calculator does this math, and the approval screen pre-fills it.