Net terms for brands selling wholesale
You built the brand direct to consumer. Now stockists want Net 30. Terms Due lets you say yes without turning into a credit controller.
Who your buyers are
Independent shops, concept stores and small chains, usually run by the owner, who orders from a phone between customers and pays when the month's bills get done. Each one is worth a few hundred to a few thousand a month. Together they are a meaningful share of revenue and a long list of small balances to watch.
Most are good payers who are simply busy. A few will use you as a bank if nothing stops them. The job is to let the first group trade without friction while the second group is caught early, and to do it without hiring anyone.
The usual problems
- Dozens of small stockists, each with a few hundred to a few thousand on account.
- Accounts teams that pay against statements, if at all, and owners who pay from their phone.
- Reorders arriving from shops that still owe for the last delivery.
- A spreadsheet of who owes what that is accurate on the day it is made.
- Nobody wanting to be the one who tells a stockist no.
Before and after
Before
- Terms given to any shop that asks, with no limit.
- First reminder sent when someone notices, by email, to whoever ordered.
- Stockists reorder while late because nothing stops them.
- Chasing is the founder's Friday afternoon.
With Terms Due
- A low starting limit for every new stockist, raised as they pay.
- Heads-up before the due date, text on the day, to the owner's phone.
- Late stockists held at checkout until they pay, then released automatically.
- The founder reads a Monday email and makes two calls.
How Terms Due helps
Suggested starting settings
| Setting | Suggested | Why |
|---|---|---|
| Terms | Net 30 | Standard for independents; Net 60 only for chains |
| Default limit | One month of expected orders, $1,000 to $3,000 | Caps the loss on a new shop without blocking normal reorders |
| New stockists | First order on a card, then terms | Earns trust before extending it |
| Grace period | 14 days | One payment run to catch up, then orders pause |
| Reminders | Email at -5, email and text at 0, 7, 14, 30 | Texts reach the owner, email keeps the record |
| Statements | Monthly, on the 1st | What the shops with a bookkeeper pay against |
Worked example
Forty stockists, one quiet October
A skincare brand has forty stockists on Net 30 averaging $1,800 a month each. In October, six pay late. With limits of $3,000 and a 14-day hold, the two that try to reorder while late are stopped at checkout and pay the same day. The other four pay by the day-7 text. Total late at month end: $2,100 across two accounts, both under their limit. Nobody on the brand's team sent a message by hand.
| Stockists | 40 |
|---|---|
| Average monthly order | $1,800 |
| Late in October | 6 |
| Stopped at checkout and paid | 2 |
| Still late at month end | $2,100 |
Questions
Will holding orders upset stockists?
Rarely. The reminder before the hold tells them it is coming, and the hold lifts the moment they pay. Most shops expect it; it is how their other suppliers work.
Can I give better terms to my best stockists?
Yes. Terms and limits are per company. A long-standing shop can be on Net 45 with a high limit while a new one is on Net 30 with a low one.
Do I need Shopify Plus?
No. Payment terms and companies are on Basic, Grow and Advanced since April 2026.
Related
Offering Net 30 on Shopify
A step-by-step guide to offering Net 30 payment terms to wholesale buyers on Shopify, from company setup and trade terms to reminders and collection.
Read moreSetting credit limits
How to decide credit limits and payment terms for wholesale buyers: order value, trade references, credit checks, starting limits and when to review.
Read morePricing
Terms Due pricing: free for up to three trade accounts, then Starter $49, Growth $99 and Scale $199 a month with a 14-day trial, billed through Shopify.
Read moreStop chasing wholesale invoices by hand
Install Terms Due, set a credit limit for each buyer and let the app hold, remind and collect.
Install on Shopify