Net terms for manufacturers and distributors
Trade customers, repeat orders and large invoices. Terms Due brings the credit control you would expect from an ERP to your Shopify B2B store.
Who your buyers are
Trade customers with purchasing departments and accounts payable teams, ordering regularly in volumes that make each invoice matter. Many will only pay against a statement, many run their own payment terms regardless of yours, and a few are large enough that their slow payment is your cash flow problem.
This is the environment credit control software was built for. Shopify B2B gives you the ordering side; Terms Due adds the limits, holds, statements and interest that a larger supplier would run from an ERP.
What you get
- Credit limits and automatic holds on every company and location.
- Monthly statements and a pay-now page for each customer's accounts team.
- A weekly aging report emailed to your finance team.
- For UK customers, statutory interest and fixed compensation on late invoices.
- A timeline per invoice of every reminder, charge and payment.
- Reminders to the accounts contact and the buyer, by email and text.
- CSV export for month-end.
- Payments recorded on the Shopify order for your ERP to pick up.
Before and after
Before
- Limits in the ERP that Shopify checkout cannot see.
- Statements built from an export at month end.
- Interest never claimed because nobody can face the sums.
- Finance finds out about a large late balance from the bank reconciliation.
With Terms Due
- Limits enforced at Shopify checkout on every order on terms.
- Statements sent on the 1st with a pay link.
- Interest and compensation calculated and shown as lines.
- Finance gets the aging report every Monday.
Suggested starting settings
| Setting | Suggested | Why |
|---|---|---|
| Terms | Net 30; Net 60 for accounts with a credit report | Longer terms earned, not assumed |
| Default limit | One month of expected orders | Raised per account on evidence |
| Large accounts | Credit report, filed accounts, quarterly review | The book is concentrated; check the big ones |
| Grace period | 14 days | One payment run, then a pause |
| Reminders | Email to accounts contact at -5, 0, 7, 14, 30; text to buyer at 14 | Accounts pays; the buyer makes it happen |
| Interest (UK) | On by default, waived case by case | A right you decide whether to insist on |
Fits your existing setup
Keep your ERP or accounting integration. Terms Due works on the Shopify orders themselves and records payments there, so your downstream systems see them as normal. Companies, locations, price lists and terms stay in Shopify; limits, holds and the collection process sit in Terms Due.
If your ERP already runs credit limits, the practical issue is that Shopify checkout cannot see them. Mirror the ERP limit in Terms Due and the check happens where the order is placed.
Worked example
A distributor's accounts team and a statement
A components distributor supplies a contractor who orders twice a month and pays only against statements, on the 20th. Before: invoices sent individually, half paid, queries about the rest. After: a statement on the 1st listing both invoices with the order numbers the contractor's AP team recognises, a pay link, and the credit limit and available credit at the top. On the 20th both are paid by card against the statement. When the contractor slipped a month later, the day-14 hold paused a $9,000 order until the balance was cleared, which it was the same day.
Questions
Does Terms Due replace our ERP's credit control?
It enforces credit control where your ERP cannot: at Shopify checkout. Mirror the limits and let the ERP remain the ledger.
Can statements go to the customer's AP team rather than the buyer?
Yes. Add the AP contact to the company and choose which contacts receive statements and reminders.
We invoice in more than one currency. Does that work?
Terms Due uses the currency of each Shopify order and reports per company in that currency.
Can we apply interest to some UK customers and not others?
Yes. Interest is applied per company and can be waived per invoice.
Related
UK late payment interest
Terms Due works out statutory interest and fixed compensation under the UK Late Payment of Commercial Debts Act on overdue Shopify B2B invoices.
Read moreStatements and pay-now page
Send monthly statements to Shopify B2B buyers and give them one page to see and pay every open invoice. Payments are recorded back on the Shopify orders.
Read morevs accounting software
Why accounting software credit control does not stop Shopify orders, and how Terms Due works alongside Xero or QuickBooks for B2B net terms.
Read moreStop chasing wholesale invoices by hand
Install Terms Due, set a credit limit for each buyer and let the app hold, remind and collect.
Install on Shopify