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Trading & Commerce

B2B Credit Limit Calculator

Determine the maximum credit exposure for a business buyer by evaluating their monthly sales, payment history, net worth and industry risk — protecting your receivables book.

Result

FactorScore / MultiplierContribution
Notes & assumptions: Base limit = 20% of buyer monthly sales. Multipliers applied for payment history, tenure, security and industry risk.

Disclaimer: This tool provides an indicative estimate for general planning only and is not professional, legal, financial, medical or engineering advice. Reference values are editable defaults that vary by location, vendor, regulation and date. Verify critical figures with a qualified professional. Varada Nexus accepts no liability for decisions made using this tool.

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FAQ

How often should I review credit limits?

Review annually or after any significant event — large order, late payment, change in buyer business, credit bureau alerts. For new buyers, start with 50% of calculated limit and review after 6 months.

What payment security should I take?

For B2B credit above ₹5 lakh: post-dated cheques or signed agreements. Above ₹20 lakh: personal guarantee of promoter. Above ₹50 lakh: property / FD / bank guarantee.

Should I use a credit bureau report?

Yes. CIBIL Commercial report (₹300–500) shows defaults, pending suits and bank exposure. Essential for first-time buyers and for limits above ₹5 lakh.