Net Terms & Credit Management

Published Feb 19, 2026 1 view

Net Terms & Credit Management

Overview

Ordrly supports configurable Net Terms for approved retailers. Net Terms allow retailers to place wholesale orders without immediate payment, generating an invoice with a defined payment window (for example, Net 30).

Ordrly provides structured credit validation, automated invoicing, automated reminder workflows, partial payment handling, and Stripe-based reconciliation to ensure transparent and controlled accounts receivable management.

1. Net Terms Configuration

Net Terms are configured per retailer and include:

  • Terms Name (e.g., Net 30)
  • Payment Days (e.g., 30)
  • Credit Limit (optional)
  • Active status toggle
  • Internal notes

Only active Net Terms records may be used during checkout.

2. Credit Validation at Checkout

When a retailer selects Net Terms during checkout, Ordrly validates:

  • The Net Terms record is active.
  • The retailer has sufficient available credit.

Available Credit Calculation

Available Credit = Credit Limit − Current Outstanding Balance

If the order total exceeds available credit, Net Terms cannot be selected for that order.

Net Terms orders are blocked only when the credit limit is exceeded or the Net Terms record is inactive. Overdue status alone does not automatically block new Net Terms orders in the current production configuration.

3. Invoice Creation & Lifecycle

When a Net Terms order is placed:

  • An Accounts Receivable (AR) record is created.
  • The due date is calculated as Order Date + Payment Days.
  • The invoice status begins as Open.
  • The retailer’s outstanding balance increases.
  • Seller payout is deferred until invoice payment is received.

Invoice Status Flow

  • Open → Paid → Closed
  • Open → Overdue
  • Open → Partially Paid → Open

4. Automated Invoice Reminders

Ordrly includes an automated reminder system for Accounts Receivable.

Daily Processing

  • Command: ar:process-reminders
  • Runs daily at 09:00 America/New_York

Reminder Logic

Overdue Invoices

  • Open invoices with due date earlier than today
  • auto_reminders_enabled = true
  • Receive overdue reminder emails

Due Soon Invoices

  • Open invoices due within the next 3 days
  • No reminder sent within the last 7 days
  • Receive “due soon” reminder emails

Reminder Throttling

  • Respects each invoice’s reminder_frequency_days setting
  • Reminders are not sent more frequently than configured
  • Can be disabled per invoice using auto_reminders_enabled

This ensures structured but controlled AR communications without excessive notification volume.

5. Partial Payment Handling

Wholesale Net Terms Invoices

Partial payments are supported for Accounts Receivable.

  • Each payment updates amount_paid and amount_remaining.
  • Status remains Open until amount_remaining = 0.
  • Once fully paid, status transitions to Paid.
  • Multiple partial payments are supported.

This allows retailers to reduce outstanding balances incrementally while maintaining accurate exposure tracking.

POS Orders

POS orders do not support partial payments.

  • Payment amount must equal the full order total.
  • Mismatched payment amounts are rejected.

6. Stripe Payment & Reconciliation

Invoice payments are processed via Stripe.

  • Stripe confirms payment success.
  • Webhooks reconcile the invoice automatically.
  • Invoice state updates accordingly.
  • Seller payout is released after payment confirmation.

Ordrly does not advance funds for Net Terms orders. Sellers are paid only when invoice payments are successfully processed.

7. Overdue Behavior & Credit Exposure

In the current production configuration:

  • Overdue invoices trigger automated reminders.
  • Credit exposure is capped by the configured credit limit.
  • Overdue status alone does not automatically suspend Net Terms access.

New Net Terms orders are blocked only if:

  • The retailer exceeds their credit limit, or
  • The Net Terms record is inactive.

This approach ensures exposure remains bounded while allowing operational flexibility.

8. Risk Model Summary

Ordrly’s Net Terms system is designed to provide structured credit management without marketplace underwriting.

  • Retailer credit risk remains at the brand level.
  • No marketplace-funded payout advances are issued.
  • Credit exposure is capped by configured limits.
  • Automated reminders support AR management.
  • Partial payments reduce exposure in real time.
  • All payment processing is handled through Stripe.

Why This Matters

Ordrly’s Net Terms system supports wholesale growth while maintaining financial discipline, predictable exposure limits, and audit-ready invoice management.

This structure enables brands to offer trade credit with transparency and operational control.

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