Most new wholesale accounts get offered net-30 terms by default. Some buyers, especially independent retailers with seasonal cash flow, would benefit enormously from net-60. The good news is that net-60 is often available; the awkward news is that the supplier rarely volunteers it. You have to ask. Here is when to ask, when to take what you're offered, and the one question that should drive the decision.
First, the baseline. Net-30 means you receive the goods, you pay the invoice within 30 days. Net-60 means the same, but you have 60 days. If you are selling those goods within that window — which, for most independent retail, is the realistic case during a season — the longer terms are free working capital.
Many new buyers assume net-60 is reserved for chains or 'serious' accounts. It isn't. It's reserved for accounts the supplier trusts, which is a function of how you present yourself and whether you've paid earlier invoices on time. If this is your first order with the supplier, you have no payment history yet — but you can substitute references. Two letters from existing wholesalers confirming you've paid net-30 invoices on time will usually move the needle.
Now: when to ask. If your sell-through window on the category is longer than 30 days — most apparel, most home goods, most seasonal items — ask for net-60 explicitly. Don't wait until you're stretched on the invoice to start the conversation. That's the worst possible time.
When to take what you're offered: if you're trying out a supplier with a small first order ($500–$1,500), the negotiation cost of pushing for better terms usually isn't worth the political capital. Take net-30, pay early, and ask for net-60 on the second PO when you have payment history to point to.
The one question that decides it: 'What's the average sell-through cycle on this category for accounts like mine?' If the supplier's honest answer is 45–90 days, you should be on net-60. If it's 14–21 days, net-30 is fine and you don't need to push. The supplier knows the answer because they hear it from every account they have; you just have to ask.
One last note: some suppliers offer an early-payment discount (often 2/10 net 30, meaning 2% off if you pay within 10 days). If your store has the cash flow to take advantage of these, it's almost always worth it — 2% on a 20-day acceleration is a phenomenal annualized return. The math works out to about 36% APR equivalent, which beats almost any other use of working capital you have.
Written by Amy Burdick for WICE. Questions or pushback? We read every reply. Write to us.