Customer Credit Limit & DSO Calculator
A safe credit limit is roughly what the customer buys from you over the credit period, adjusted for their risk. For example, if a buyer purchases ₹3 lakh a month on 30-day terms, a reasonable limit is about ₹3 lakh, and less if they pay late or file GST irregularly. Use the calculator below to set limits and to measure how fast you collect (DSO).
Don’t guess — check the buyer first
The TradeSure Trust Score combines GST filings, turnover and risk signals into one credit report.
Frequently asked questions
How do I decide a credit limit for a new customer?
Start small, about half of one credit cycle’s purchases. Verify their GSTIN and filing history, ask for trade references, and raise the limit after 2–3 cycles of on-time payment.
What is DSO and what is a good DSO?
Days Sales Outstanding (DSO) = receivables ÷ annual credit sales × 365. It shows how many days, on average, you take to collect. A good DSO is close to your credit terms; a DSO more than 15 days above your terms means collections need attention.
How do I reduce DSO?
Invoice on time, send reminders before the due date, follow up consistently after it, offer early-payment discounts, and stop fresh supply to accounts that cross their limit.
Should I review credit limits regularly?
Yes. Review them at least every quarter, and immediately if a buyer starts paying late, misses GST returns or suddenly increases order size.
These calculators use simple rule-of-thumb factors and are a guide, not a credit decision.