How to Set Wholesale Payment Terms for Your Customers

Updated September 2026 · 8 min read

Short answer: Most brands and makers ask new wholesale customers to prepay for their first order, then offer net 30 terms to stores that pass a simple credit check and pay on time. Good wholesale payment terms spell out when payment is due, how stores can pay, what happens if they’re late, and who qualifies for credit.

If you sell your products to shops, your terms affect two things at once: how easy you are to buy from and how steady your cash flow is. Too strict and stores pick a competitor. Too loose and you end up financing your customers’ inventory. This guide shows you how to find the middle ground.

What are wholesale payment terms?

Payment terms are the rules for how and when a retailer pays your invoice. They usually appear on your line sheet, your order form, and every invoice. A complete set covers:

• Due date: prepay, due on receipt, net 15, net 30, and so on
• Payment methods: bank transfer, check, credit card, or others you accept
• Discounts: any reward for paying early
• Late policy: fees or interest on overdue balances, and when you pause shipments
• Credit rules: who qualifies for terms and how much credit they get

Which wholesale payment terms should you offer?

Here are the most common options and when each makes sense.

Term	What it means	Good for	Risk to you
Prepay	Paid before you ship	First orders, unknown buyers	Low, but may slow sales
Due on receipt	Paid when the invoice arrives	Small repeat orders	Low to moderate
Net 15	Paid within 15 days of invoice	Newer accounts with some history	Moderate
Net 30	Paid within 30 days of invoice	Established, reliable stores	Moderate to higher
Net 60	Paid within 60 days of invoice	Large accounts with strong credit	Higher, ties up cash longer
2/10 Net 30	2% off if paid in 10 days, otherwise due in 30	Speeding up payment from good accounts	You give up 2% on early payers

A simple setup works for most small brands: prepay for the first order, net 30 after that for stores that qualify, and card payments accepted for anyone who wants to pay right away.

How much can you afford to offer?

Before you offer net 30, figure out how much cash you’ll have tied up in unpaid invoices. This is your accounts receivable.

If you don’t have that cash to cover materials, labor, and bills while you wait, start with shorter terms or keep more accounts on prepay.

What does an early-pay discount really cost?

A “2/10 Net 30” discount sounds small, but it adds up. If a store takes 2% off to pay 20 days sooner, you’re effectively paying about 37% a year to get your money early (2 ÷ 98 × 365 ÷ 20). That can still be worth it if you need cash now, but know what you’re giving up.

How do you decide who gets terms?

Give credit to businesses, not promises. A short credit application helps you decide quickly and treat every store the same way.

What to ask on a credit application

• Legal business name, trade name, and years in business
• Business address and phone
• Tax ID and resale certificate
• Owner or buyer name and email for invoices
• Two or three trade references with contact details
• Requested credit limit
• A signature agreeing to your terms, including late fees

Red flags to watch for

• References that don’t answer or can’t confirm the account
• A large first order with a request for long terms
• A business name that doesn’t match the tax ID or address
• Pressure to ship before the application is complete

What should you do when customers pay late?

Late payments happen. A clear, polite process fixes most of them.

1. Send a reminder a few days before the due date.
2. Follow up the day after it’s due with a copy of the invoice.
3. Call after 7 to 10 days overdue. Ask when they’ll pay and confirm it in writing.
4. Pause new shipments once an account is 30 days past due.
5. Move the account to prepay if lateness keeps happening.

Late fees and interest can encourage on-time payment, but rules on how much you can charge vary by state. Put any fee in your written terms, keep it reasonable, and check your state’s rules. This isn’t legal advice.

Sample wording for your terms

You can adapt this to your business:

“Payment terms: Opening orders are paid in full before shipping. Approved accounts may receive Net 30 terms from the invoice date, subject to a completed credit application. We accept bank transfer, check, and major credit cards. Invoices unpaid after 30 days may be charged a late fee as stated in your credit agreement, and new orders will be held until the account is current.”

Put this in the same place your buyers look for pricing. If you’re building that document now, see our guide on how to create a wholesale price list.

How do terms help you win accounts?

Store owners compare terms when they choose new vendors, because terms affect their cash too. Offering net 30 to proven accounts can be the reason a buyer picks your line over a similar one. Just make sure your terms are a tool for growth and not a loan you can’t afford. If you’re pitching stores for the first time, our guide on how to sell your products to stores covers the rest of the process.

It also helps to understand the buyer’s side. Retailers often work hard to earn terms, and our guide to getting net 30 terms from suppliers explains what they go through.

FAQ

What are standard wholesale payment terms?

Prepay for first orders and net 30 for approved repeat accounts is the most common setup for small brands selling to independent stores.

Should I offer net 30 to new wholesale customers?

Usually not on the first order. Ask for prepay or a card payment first, then offer net 30 once the store has a credit application and a record of paying you.

Can I charge a late fee on wholesale invoices?

Often, yes, if it’s in your written terms and agreed to by the customer. Limits vary by state, so check the rules where you do business.

Is it OK to require credit card payment for wholesale orders?

Yes. Many small brands require a card for opening orders. Card processing fees cut into your margin, so factor them into your pricing.