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Party Credit Score: Give Credit Based on How Parties Pay
पार्टी को उधार कितना दें? पेमेंट के दिनों से पार्टी का स्कोर
Score each party on average payment days and credit used, then decide who gets more credit, who needs follow-up and who should buy on cash only.
Every distributor has parties who pay in 20 days and parties who take 90. Both buy, both ask for more goods, and both are usually given the same credit. A simple score based on how each party actually pays fixes this.
Step 1: average payment days
For each bill, count the days from bill date to the date it was fully paid. Average these days for the party over the last six or twelve months, weighting by bill amount so one small late bill does not spoil a good party. Bills still unpaid count up to today.
Step 2: credit used
Compare the party's current outstanding with the credit limit you have in mind for them. Using 60% of the limit is normal; running above 100% is a warning.
Step 3: give a score
| Score | Typical pattern | Decision |
|---|---|---|
| A | Pays within your credit days, rarely over limit | Can be given more credit or a better rate |
| B | Pays a little late, stays near the limit | Regular terms, gentle reminders |
| C | Often 2 to 3 weeks late, above limit | Follow up before the next bill; hold big orders |
| D | Very late, high outstanding, part payments | Cash or advance only until dues are cleared |
Set your own day bands by trade: in cement and steel 30 days may be normal, in FMCG 15 days.
Use it every day
- Show the score to the person who books orders, so a D party's big order gets checked first.
- Send reminders in time (see reminder message templates).
- Review scores monthly; a party that improves should be rewarded.
Doing it without Excel
Working payment days bill by bill from a ledger is slow by hand. Bharat Cloud Sync calculates average payment days, credit used and an A to D score for every party from your BUSY data, in its Customer Health report, with the bills behind each figure one click away.
Related: Payment reminder templates · Bill-by-bill outstanding in BUSY · Bharat Cloud Sync
Disclaimer: This article is general information for business owners, accountants and tax professionals, written by Bharat Busy Care as understood on the date shown below. It is not legal, tax or professional advice. GST, income-tax and other laws, rates, forms, due dates and portal steps change often: check the current Acts, rules, notifications, circulars and official advisories, and consult your CA or tax practitioner before acting on it. BUSY menu names can differ by version, plan and configuration; take a backup before changing settings. Bharat Busy Care is not responsible for any loss arising from the use of this information. BUSY is a trademark of its owner; Bharat Busy Care is an Authorised BUSY Platinum Partner. See our terms.
अस्वीकरण: यह लेख केवल सामान्य जानकारी के लिए है, कानूनी या टैक्स सलाह नहीं है। नियम बदलते रहते हैं; कोई भी निर्णय लेने से पहले नवीनतम अधिसूचना देखें और अपने CA / टैक्स सलाहकार से सलाह लें।
Updated 14-11-2026 · Bharat Busy Care, Authorised BUSY Platinum Partner
FAQ
Should average payment days be weighted by bill amount?
Yes. Weighting by amount stops one small late bill from pulling down a party who pays large bills on time.
What if a party pays on account and not against bills?
Settle receipts against the oldest bills first (first in, first out) unless the party tells you otherwise; that gives a fair payment-days figure.
How often should scores be updated?
Monthly is enough for most businesses; check the score before any unusually large order.
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