Home Free Tools Credit Limit Calculator — Set the Right Credit Limit for Every Dealer
Distributor Tool

Credit Limit Calculator — Set the Right Credit Limit for Every Dealer

Calculate recommended credit limit based on purchase volume, credit period, and payment history.

Use the Calculator

Formula & How It Works

Base = Monthly Purchase ÷ 30 × Credit Days
Adjusted Limit = (Base + Buffer) × Payment Score ÷ 100

Worked Example

₹5L/month, 30d credit, score 80, 20% buffer → Base ₹5L → With buffer ₹6L → Adjusted ₹4.8L

When to Use This Calculator

  • Set dealer credit limits
  • Differentiate by payment history
  • Review limits quarterly

Frequently Asked Questions

Max outstanding a customer can carry before supply is stopped.
Monthly purchases × credit period in months + buffer.
No — differentiate by size, payment track record, security given.
Take the next step

Need a complete ERP for your business?

Use VasyERP to automate billing, inventory, GST, distribution, manufacturing, and business growth in one intelligent platform.

Explore More Free Tools Book Free ERP Demo Contact Sales