Managing Commercial Credit Lines and Customer Payment Terms in B2B

Published on 12/09/2026 · Updated to 19/10/2026

In short: granting a payment term to a customer is, in effect, extending credit, carrying the same risk as any other commercial credit. Deciding how much credit to extend, protecting yourself on long terms, recognising the signs of a customer about to stop paying, and knowing how and when to reduce or withdraw a credit line already granted are the five recurring decisions for anyone selling B2B on credit terms.

Do you need to decide on payment terms for a specific customer? The Rating and operational credit line micro-product (9.90€) shows the credit rating and estimated operational exposure limit of that company. Alternatively, both are included in all tiers of the full report, starting from 19€. If the customer is new, start from the checklist on creditworthiness before granting payment terms.

The five moments in managing commercial credit

When you need to decide how much credit to extend to a customer: see the practical formulas.
When a customer asks for a long payment term, e.g. 90 days: see how to protect yourself.
When you want to monitor an existing customer before non-payment arrives: see the signs to recognise.
When you need to reduce or withdraw a credit line already granted: see what is needed to do so on solid grounds.
When it is a new customer with no history: see how much credit to extend without prior data.
When an existing customer starts paying late, but does not stop ordering: see whether it is worth continuing to supply them.

The underlying principle: commercial credit is credit, and must be managed as such

A payment term, whether 30, 60 or 90 days, is in substance a short-term loan you make to your customer, remunerated (when all goes well) only by the margin on the sale, not by an explicit interest charge. Unlike a bank, which has consolidated rating tools and guarantees, a company selling B2B often grants payment terms on the basis of the commercial relationship, without systematic verification of the customer's ability to pay. The six guides in this pillar cover the practical decisions for doing so with data, not just with trust.

What this pillar is not

Veryfy is neither a law firm nor a credit consultancy: our expertise is risk management, with algorithms that cross-reference financial statements and other official databases to estimate a customer's risk. This pillar does not replace legal advice on drafting supply contracts or general terms of sale, nor structured credit advice for companies with very high credit exposures. It is the level of verification and risk management that an SME can apply in the ordinary management of its B2B customers.

Frequently asked questions

What are the six recurring decision points in managing commercial credit lines?

Deciding how much credit to extend to a customer, protecting yourself when they request a long term (e.g. 90 days), monitoring signs of insolvency, reducing or withdrawing a credit line already granted, deciding on credit for a new customer with no history, and assessing whether to keep supplying a customer who always pays late.

Why should commercial credit be managed as real credit?

A payment term is in substance a short-term loan to the customer, remunerated only by the margin on the sale. Unlike a bank, a B2B company often grants payment terms on the basis of the commercial relationship, without systematic verification of the customer's ability to pay.

What does the commercial credit management described in these guides not cover?

It does not replace legal advice on drafting contracts or general terms of sale, nor structured credit advice for very large exposures. It is the level of risk management applicable to the ordinary management of B2B customers.

Want to check a specific company?

Credit limit, beneficial owner and warning signs, in minutes.

Check a company