---
title: Credit Management for Wholesalers and Agrovets
description: How to sell on credit without cash-flow pain: credit policies, limits and terms, statements, ageing reports, follow-up routines and when to stop supplying.
url: https://www.poso.co/guides/wholesale-credit-management/
updated: 2026-10-29
---

Guide · 8 min read

# Credit management for wholesalers and agrovets.

Credit policies, limits, terms, statements, ageing and follow-up: sell on credit without running out of cash.
By the poso team · Updated 29 October 2026

**Short answer:**
Good credit management for wholesalers and agrovets means a written credit policy, a credit limit and payment terms for every account customer, a record of every credit sale and payment, statements sent monthly, an aged receivables report reviewed weekly, a firm follow-up routine for overdue accounts, and a rule for when to stop supplying. Credit should grow sales without starving the business of cash.

## Write a credit policy

- **Who qualifies**: trading history, references, a deposit, a guarantor or a group guarantee (common for farmer groups).
- **Limits**: a starting limit, and how it can grow with good payment.
- **Terms**: for example 7, 14 or 30 days, or "after harvest" with a fixed date.
- **Payment methods**: bank, mobile money, cash, cheque.
- **What happens when late**: reminders, then a hold on new credit, then recovery steps.

## Setting limits

| Customer type | Typical approach |
|---|---|
| New retail customer | Small limit or cash only for the first few months |
| Established pharmacy or clinic | Limit around one to two months of their typical purchases, 30-day terms |
| Farmer | Limit tied to expected harvest or milk income; due after harvest |
| Farmer group or cooperative | Group limit with group responsibility for repayment |
| Large account | Reviewed limit, signed agreement, regular statements |

## The collection routine

- **Every sale**Record it against the customer with a due date. Check the balance before selling more on credit.
- **Weekly**Review the aged receivables report. Send friendly reminders for anything just overdue.
- **Monthly**Send every account customer a statement, even those who are up to date.
- **30+ days overdue**Call. Agree a payment date. Put new credit on hold until it is met.
- **60+ days overdue**Stop credit. Agree a repayment plan in writing.
- **90+ days overdue**Escalate according to your policy and consider writing off what can't be recovered.

## Reading the aged receivables report

The report groups what each customer owes by how old it is: current, 1–30, 31–60, 61–90 and over 90 days. Two numbers matter most: the total over 60 days (the money at real risk) and the trend month to month. Days sales outstanding (DSO) summarises it: **DSO = receivables ÷ credit sales × days in period**.

## Protect your own cash

Credit given is cash you haven't got. Match your customers' terms to your suppliers' terms where you can, keep enough working capital for the season, and don't let one customer hold a large share of what you're owed.

## Credit in poso

poso records each credit sale against the customer with payment terms and a due date, warns you when an order or invoice would exceed the limit, accepts part payments by any method, produces statements and an aged receivables report, and shows the total customers owe on the Home dashboard. See [customer accounts and credit](https://www.poso.co/features/customer-credit/).

## Credit management questions

### How do I manage customer credit in a wholesale business?

Use a written policy, set limits and terms per customer, record every credit sale and payment, send monthly statements, review the aged receivables report weekly and stop credit when accounts go seriously overdue.

### How do I set a credit limit?

Start small for new customers, base established limits on one to two months of typical purchases, and raise or lower them based on payment behaviour.

### What is an aged receivables report?

A report showing how much each customer owes, grouped by how long it has been outstanding (current, 30, 60, 90+ days).

### Should agrovets give farmers credit?

Many do, to win loyalty and help farmers buy inputs before harvest. Keep it to known farmers or groups, set limits and due dates, and record everything.

### What is DSO?

Days sales outstanding: how many days of credit sales are still unpaid on average. Lower is better.