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
Stop supplying on credit when a customer passes a limit you set in advance: an amount owed, a number of days overdue, or a broken payment promise. Agree the limit in writing when you open the account, warn the customer before you pause, and offer a way back such as cash-on-delivery or a payment plan. Pausing credit is not the same as ending the relationship.
Why the decision gets made too late
Most Nigerian traders and distributors do not lose money on one big unpaid order. They lose it slowly: a good customer slips from 30 days to 60, then asks for one more delivery "to keep the shop running", and the balance doubles. By the time anyone says stop, the debt is too large for the customer to clear and too large for you to write off. The fix is to decide the stop point before the account is opened, so that when it arrives the decision is already made and is not personal.
Set a credit limit with three numbers
A credit limit is not one figure. It works best as three:
- Amount limit
- The most the customer can owe you at any time, for example two weeks of their normal orders.
- Days limit
- How long an invoice may stay unpaid, for example 30 days from delivery.
- Promise limit
- How many missed payment promises you accept before credit pauses, usually one.
Set the amount from what you can afford to lose, not from what the customer would like. A useful test is: if this customer stopped paying tomorrow, could your business still pay its own suppliers and staff this month? If the answer is no, the limit is too high. Before offering credit to a new business customer, you can ask for trade references and, with their consent, a credit report; the Credit Reporting Act 2017 lists credit applications among the permissible purposes for which credit information may be obtained.
Stop-supply triggers
Write these into your terms of trade and apply them the same way to every customer:
- The balance passes the amount limit, even if nothing is yet overdue.
- Any invoice passes the days limit.
- A cheque bounces or a promised transfer does not arrive on the agreed day.
- The customer disputes a delivery only after being chased for payment, with no complaint at the time of delivery.
- You hear credible news that the customer is in difficulty, such as closing a branch or being chased by other suppliers.
The trigger pauses credit, not trade. A customer on pause can still buy on cash, transfer before dispatch, or pay-as-you-go terms.
How to tell the customer without losing the account
The tone matters as much as the rule. Speak to the owner or the person who approves payments, not only the store manager, and put the message in writing after the call.
- Give notice before the pause: "Your balance is ₦X and the invoice of [date] is now 35 days old. Our terms pause credit at 30 days. We can keep supplying on transfer-before-dispatch until it is cleared."
- Offer a clear way back: a short payment plan with dates, after which credit resumes at the same or a lower limit.
- Keep supplying on cash terms if they want to, so the customer's shelves stay full and they have a reason to clear the balance.
- Record every promise in writing (a WhatsApp message is fine) with the date and amount.
- If promises keep failing, send a formal letter of demand. In the states whose small claims rules we have read, a demand letter is the first step before filing.
A worked example
Example only. A drinks distributor in Port Harcourt sets a supermarket's limit at ₦1,200,000 and 30 days. On 1 March the supermarket owes ₦950,000, of which ₦400,000 is from an invoice dated 25 January, now 35 days old. The distributor calls the owner, explains the 30-day rule, and offers: pay the ₦400,000 by 8 March and credit continues; meanwhile new orders are delivered on transfer-before-dispatch. The owner pays ₦250,000 on 6 March and ₦150,000 on 12 March. Credit resumes on 12 March with the balance at ₦550,000, well under the limit. Had the distributor kept delivering on credit, the balance could have passed ₦1,500,000 before anyone noticed.
Reviewing limits as the account changes
A limit set on day one should not stay fixed for years. Review each credit customer every quarter. A customer who has paid within terms for six months and whose orders have grown can earn a higher limit; one who now pays at 45 days when they used to pay at 20 should see the limit come down before it becomes a problem. Tell the customer when you raise a limit too. It shows the rules work both ways, which makes the pause easier to accept on the day you need it.
When to escalate
If a customer has stopped responding, or keeps breaking a payment plan, the relationship is already over in practice. At that point, your options are a formal demand, a lawyer's letter, or a small claims action for debts within the court's ceiling. Our guides on recovering an unpaid invoice, writing a credit sales policy and small claims courts outside Lagos cover each step, and AI for accounts receivable explains how to chase invoices well. This is general information, not legal advice.
Where Pryme fits
Stop-supply rules only work if you can see who owes what. A Pryme Business Account brings invoices and incoming transfers together, and its Finance agent can prepare an aged list of overdue balances for you to review; a person approves any action above a set ceiling, and actions are recorded. See the Finance agent.
Questions people ask
How do I set a credit limit for a customer in Nigeria?
Base it on what your business could afford to lose, often a few weeks of the customer's normal orders, plus a days limit such as 30 days and a rule on missed promises. Put it in writing when the account opens.
Can I stop supplying a customer who owes me money?
Generally yes, unless a contract with that customer says otherwise. Check your written terms, give notice, and offer cash terms so the relationship can continue.
Should I keep selling on credit to a customer who is owing?
Only within the limit you set. Once they pass it, switch to cash or transfer-before-dispatch until the balance is back under the limit.
What do I send a customer who refuses to pay?
A formal letter of demand stating the amount, invoices and a deadline. In the small claims rules we read for Lagos, Edo, Abia and Katsina, a demand letter must come before filing.
Sources
- Simmons & Simmons: Review of the Credit Reporting Act 2017 · accessed Oct 2026
- Lagos State Practice Direction on Small Claims Court 2023 (copy on lagosmepb.org) · 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.