Free tool
Wholesale credit limit calculator
A starting limit should cover the buyer's normal ordering pattern for as long as your terms leave money outstanding — scaled by how much evidence you actually have about them.
How the suggestion works
Limit = monthly order value × (terms ÷ 30) × confidence factor. On Net 30, roughly one month of orders is unpaid at any time; on Net 60, two. The confidence factor (50% / 75% / 100%) reflects that a limit is easier to raise than to claw back — start new accounts deliberately low and increase on payment history.
A limit only protects you if it's checked on every order. That's whatTransactful does on Shopify: available credit is computed continuously and checkout blocks any order that would exceed it —see how enforcement works.