AIWholesale payment terms: examples, net 30 and how to word them
Wholesale payment terms tell a stockist when and how to pay you, for example pro forma (pay before you dispatch) or net 30 (pay within 30 days of the invoice date). In the UK, if you haven't agreed a payment date, statutory interest can start 30 days after the goods or the invoice arrive, and between businesses, terms longer than 60 days only stand if they're expressly agreed and not grossly unfair to you. This guide gives payment terms examples with when to use each, explains net 30 and end of month, and shows how to word payment terms on an invoice.
1. What wholesale payment terms need to say
"30 days" on its own leaves too much open. Complete wholesale payment terms answer four questions:
- How long. The number of days the buyer has, or a requirement to pay before dispatch.
- From when. The invoice date, the delivery date, or the end of the month the invoice was issued. The invoice date is the easiest to prove, because it's printed on the invoice.
- How to pay. Bank transfer to the account on the invoice, a payment link, or both.
- What happens if they're late. Statutory interest and compensation, and holding further orders until the account is up to date.
Pick one standard term for most stockists and apply it consistently. Agree any exceptions in writing and save them against that customer, so the next invoice goes out on the right terms.
2. Payment terms examples, and when to use each
These are common terms on UK trade invoices. The right one depends on the buyer, the size of the order and how well you know them.
| Term | What it means | When to use it | Watch out for |
|---|---|---|---|
| Pro forma | The buyer pays before you dispatch | First orders, one-off buyers, large or custom orders, accounts that have paid late | Some buyers dislike paying up front. Offer to move them to credit after a few on-time payments. |
| Due on receipt | Payable as soon as the invoice arrives | Small one-off orders, events, collections from your unit | No fixed date, so it's harder to say when it became late. Print a date anyway. |
| Net 7 | Payable within 7 days of the invoice date | Cafés, pubs and restaurants on weekly deliveries; fresh or short-dated food | Tight for a buyer whose accounts are paid monthly |
| Net 14 | Payable within 14 days of the invoice date | Independent shops on regular orders; a sensible default for a newer brand | Make sure the invoice goes out on the day you dispatch, or the 14 days start late |
| Net 30 | Payable within 30 days of the invoice date | Established stockists with a good payment record; buyers with a monthly payment run | You carry the cost of the stock for a month |
| Net 60 | Payable within 60 days of the invoice date | Large accounts that insist on it, agreed in writing | Two months of your cash tied up. Anything longer must be expressly agreed (section 6). |
| 30 days end of month | 30 days counted from the end of the month the invoice was issued | Buyers who pay all supplier bills once a month | An invoice early in the month can wait nearly 60 days. People read the phrase differently, so print the due date. |
Orders placed through Faire and Ankorstore are paid under the marketplace's own arrangements, so your terms apply to direct orders only. Check each marketplace's current terms for how and when you get paid.
3. Net 30 meaning, and how to work out a due date
Net 30 means the full invoice amount is due within 30 days. Count calendar days from the invoice date, including weekends, unless your terms say otherwise. Some suppliers add an early payment discount, written as "2/10 net 30": the buyer can take 2% off if they pay within 10 days, otherwise the full amount is due in 30.
Example: one invoice, four sets of terms
Wildfire Chilli Co, a chilli sauce maker in Bristol, invoices a deli on 3 March 2027.
Net 14: due 17 March.
Net 30: due 2 April (28 days to the end of March, plus 2).
Net 60: due 2 May.
30 days end of month: the month ends on 31 March, plus 30 days is 30 April. An invoice dated 28 March on the same terms is also due 30 April.
Your accounting software will calculate these for you. Check the first few by hand to make sure it's set up the way you intend.
Because "end of month" terms are read in more than one way, never rely on the phrase alone. Print the due date as a date on every invoice, and the buyer has nothing to interpret.
4. Pro forma invoice: asking for payment up front
A pro forma invoice looks like a normal invoice, with the same products, quantities, prices and bank details, but it's clearly labelled "Pro forma" and asks the buyer to pay before you send anything. Once the money arrives, you dispatch and issue the proper invoice, marked as paid.
If you're VAT registered, a pro forma isn't a VAT invoice, so the buyer needs the proper invoice to reclaim VAT. Ask your accountant how your software handles pro formas so the two documents don't get counted twice.
Explain pro forma as a normal step for new accounts, and give the buyer a route to credit terms. Here is an email you can adapt:
Subject: Your first order with Kindred Skin: pro forma attached
Hi Tom,
Thanks for your first order. I've attached a pro forma invoice for £312.00. As soon as payment arrives, we'll dispatch the same day and send you the full invoice for your records.
We ask all new stockists to pay their first orders up front. After three orders paid on time, we'll move you to 30 days from the invoice date.
Thanks,
Hannah, Kindred Skin
5. How to write payment terms on an invoice
Payment terms on an invoice should be impossible to misread. State the terms, then the due date as a date, then how to pay. This block works at the foot of any trade invoice:
Payment terms: 30 days from invoice date
Due date: 2 April 2027
How to pay: bank transfer to Kindred Skin Ltd, sort code 00-00-00, account 00000000. Please quote invoice 1187 and your PO number.
Late payment: we charge statutory interest and fixed compensation on late payments under the Late Payment of Commercial Debts (Interest) Act 1998.
The bank details above are placeholders. Use your own.
A few rules for wording:
- Write "30 days from invoice date", not "30 days". Name the start point.
- Use the same wording on your trade sheet, your order confirmation and your invoice, so the buyer sees the terms three times before payment is due.
- For a pro forma, write "Payment required before dispatch" where the due date would go.
- For a customer on agreed exceptions, print their terms, not your standard ones. If your accounting software lets you save terms against each customer, set them there so every invoice uses the right ones. Our page on connecting DELLI AI to Xero covers how approved orders reach your invoices.
The rest of what an invoice needs, from VAT number to PO number, is in our guide to chasing unpaid wholesale invoices, along with reminder emails for when a due date passes.
6. UK rules: the 30-day default and the 60-day limit
The Late Payment of Commercial Debts (Interest) Act 1998, with the 2013 regulations that updated it, sets the rules for payment between businesses. Two points shape the terms you offer.
If you haven't agreed a payment date
Statutory interest can run from 30 days after the later of two dates: when the goods arrived, or when the invoice arrived. So even with nothing in writing, a buyer who takes three months to pay is paying late. Writing your terms down still matters, because it makes the due date clear and lets you set a shorter period, such as 14 days.
If a buyer wants more than 60 days
Between businesses, agreed payment terms longer than 60 days are only allowed if they're expressly agreed and not grossly unfair to the supplier. If a large account asks for 90 days, you can say no, offer 60, or agree to it in writing knowing what it costs your cash flow. Don't let longer terms arrive by default on the buyer's paperwork without a conversation.
When payment is late
On a late business-to-business invoice you can claim statutory interest at 8% above the Bank of England base rate, plus fixed compensation per invoice: £40 for debts under £1,000, £70 for £1,000 to £9,999.99, and £100 for £10,000 or more. Mention this in your terms and on your invoices so it's no surprise if you claim it.
Questions about payment terms
What does net 30 mean?
Net 30 means the full invoice amount is due within 30 days. The days are usually counted from the invoice date, so state that on the invoice along with the actual due date.
What are standard payment terms in the UK?
There is no single standard. Net 14 and net 30 from the invoice date are common for trade orders, and if no payment date is agreed, statutory interest can start 30 days after the goods or the invoice arrive, whichever is later.
What is a pro forma invoice?
A pro forma invoice is a request for payment before the goods are sent. It lists the same products and prices as an invoice, and once it's paid the supplier dispatches and issues the proper invoice.
What does 30 days end of month mean?
It usually means payment is due 30 days after the end of the month in which the invoice was issued, so an invoice dated 3 March is due on 30 April. Because people read it differently, always print the due date on the invoice.
How do I write payment terms on an invoice?
State the terms with their start point, such as "30 days from invoice date", then the due date as a date, then your bank details and the reference to quote. Add a line saying you charge statutory interest and compensation on late payment.
Can a customer insist on 90-day payment terms?
Between businesses, payment terms longer than 60 days are only allowed if they are expressly agreed and not grossly unfair to the supplier. You can refuse, or agree in writing if the account is worth it to you.
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