Glossary: Order rules

Credit limit

A credit limit is the maximum unpaid balance a seller allows one buyer to carry at a time. When a buyer on net terms reaches it, further orders wait until earlier invoices are paid. Sellers set it from the buyer's payment history and financial standing.

  • Reviewed by Hoa Nguyen, Senior Marketer. Last reviewed
  • Last updated

Example

A buyer with a $5,000 credit limit and $4,200 outstanding can place only $800 more in orders until an invoice is paid.

Learn more

Read the Order rules and terms hub for guides, use cases and setup docs, or the complete Shopify B2B guide.

Related terms

Net termsNet 30

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