AI agents for business finance: what they can and can't do
What AI agents can do in bookkeeping, close, collections and compliance today, where a person must stay in charge, and how to judge a product.
The short answer
Give each retailer a written daily credit limit based on what they sell and how fast they pay, usually no more than one or two days of supply, and stop new supply when the limit is reached. Agree a returns rule in advance (what you take back, by when, and up to what share of delivery). Reconcile every route daily so drivers, deliveries, returns and payments match.
Bread is sold every day, goes stale in days, and is often supplied to kiosks and supermarkets on the understanding that they will pay tomorrow. That makes it one of the riskiest products to sell on credit: the debt grows quietly, returns are easy to dispute, and cash passes through several hands before it reaches the bakery. The controls below are designed for that reality.
Set a daily credit limit per retailer
A credit limit is the most a retailer can owe you at any time. For bread, set it from two numbers: how many loaves the shop sells in a normal day, and how many days it takes to pay. A practical starting rule is one day of supply for a new retailer and up to two days for a retailer with a clean record.
Example: a shop takes 40 loaves a day at a wholesale price of ₦1,000 and pays each morning for the previous day. One day of supply is ₦40,000. If you add a 25% cushion for busy days, the limit is ₦50,000. When the balance owed reaches ₦50,000, the van leaves bread only against payment.
- Write the limit down and give the retailer a copy, signed by both sides.
- Review limits monthly: raise them for prompt payers, cut them for late ones.
- Never let a driver raise a limit on the spot. Only the owner or a named manager can.
- Treat a new branch of an existing customer as a new account with its own limit.
Agree a returns rule before the first delivery
Returns are where bread credit goes wrong. A retailer who can send back any unsold loaf has no reason to order carefully, and every return raises your cost per loaf. Decide in advance:
- What you take back: for example, unopened loaves within their date, not crushed or opened packs.
- When: returns only on the next delivery, counted in front of the retailer and the driver.
- How much: a cap, for example up to 5% of the previous day's delivery; above that the retailer pays for the bread.
- How it is credited: a returns note, signed by both, reducing the next invoice. No cash refunds by drivers.
If a retailer's returns sit well above the route average, cut the daily order before you cut the price. The shop is overstocked, and lowering the price only teaches it to over-order more.
Control the route: drivers, sheets and remittance
Every route needs one sheet a day showing, for each stop: loaves delivered, loaves returned, the amount invoiced, the amount paid and how it was paid, and the balance carried forward. The driver and the retailer both sign. At the end of the day, someone other than the driver checks that:
- loaves loaded = loaves delivered + loaves brought back;
- cash handed in + transfers received = payments recorded on the sheet;
- no retailer's balance is above its limit without a written reason.
Ask retailers to pay by bank transfer into the bakery's account rather than handing cash to drivers. It shortens the chain of hands, and each payment carries the retailer's name. Do not accept a screenshot of a transfer as proof of payment; confirm that the money is in the account before releasing more bread on credit.
| Example route sheet | Shop A | Shop B | Shop C |
|---|---|---|---|
| Limit (₦) | 50,000 | 30,000 | 80,000 |
| Opening balance (₦) | 40,000 | 24,000 | 0 |
| Delivered today (loaves × ₦1,000) | 40,000 | 20,000 | 60,000 |
| Returned today (₦) | −2,000 | 0 | −1,000 |
| Paid today (₦) | −40,000 | −10,000 | 0 |
| Closing balance (₦) | 38,000 | 34,000 | 59,000 |
| Within limit? | Yes | No: stop credit | Yes |
In the example, Shop B is ₦4,000 over its limit. The next delivery to Shop B should be cash or transfer only until the balance falls back.
When a retailer stops paying
Act early. Stop credit the first time a limit is breached, call the owner the same day, and agree a written plan for the arrears. A short signed acknowledgement of the debt is worth having. If the retailer still does not pay, a formal letter of demand is the next step. In Lagos, a liquidated money claim of up to ₦5,000,000 can go to the Small Claims Court; the Practice Direction requires a letter of demand on Form SCA 1 giving 14 days before you file. Other states have their own small claims rules.
For tax purposes, a bad debt incurred in the course of trade is generally deductible, according to PwC's summary of Nigerian corporate deductions (reviewed May 2026), but you need the records to show that the debt was real and that you tried to collect it. That is one more reason to keep signed route sheets.
See also our guides to a credit sales policy, the Lagos Small Claims Court and getting paid in Nigeria.
Where Pryme fits
With a Pryme Business Account, retailers can pay through bank-transfer checkout (free), so each payment arrives with a clear reference. The Sales agent can prepare reminders for balances near their limit; a person approves what is sent. For costing the loaves themselves, see costing a loaf of bread.
Questions people ask
How much credit should I give a shop that sells my bread?
Start with about one day of the shop's normal supply, and raise it to two days only after a record of prompt payment. Put the limit in writing.
Should a bakery accept returns of unsold bread?
Only under a rule agreed in advance: what can be returned, when, and up to what share of the delivery. Above that cap, the retailer pays.
How do I stop drivers from mixing up bread money?
Use one signed route sheet per day, ask retailers to pay by transfer into the business account, and have someone other than the driver reconcile loaves and payments each evening.
Can I take a shop owner to small claims court for unpaid bread money?
In Lagos, liquidated claims up to ₦5,000,000 can go to the Small Claims Court after a 14-day letter of demand on Form SCA 1. Other states have their own practice directions.
Sources
- Lagos State Practice Direction on Small Claims Court 2023 · accessed Oct 2026
- Nigeria corporate deductions, PwC Worldwide Tax Summaries (reviewed 29 May 2026) · accessed Oct 2026
- The rights of a consumer under the FCCPA, Mondaq (23 Dec 2019) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.