Not legal advice — have your counsel review it before you use it.
Why put your terms in writing
Unwritten terms drift. A store that was never told when an invoice is due, or what happens when it's late, has nothing to hold itself to. A short written policy, sent before the first order on terms, settles those questions before money is owed.
What the policy covers
- Payment terms: how many days a store has to pay, counted from the invoice date.
- Credit limits: the most a store can owe you at once.
- Opening an account: a credit application, an optional personal guaranty, and the store's current license.
- How to pay: the payment methods you accept.
- Reminders: when stores hear from you about an invoice.
- Past-due accounts: when new orders go cash on delivery or wait, and that a written payment plan is an option.
What it leaves to you and your lawyer
The builder doesn't add late fees or interest. Whether you can charge them, and how much, depends on your contracts and your state. Some states also have their own wholesale payment rules for cannabis; start with our cannabis wholesale payment rules by state and have your counsel confirm what applies to you.
Then hold the line
A policy only works if someone enforces it every week. ShelfSpace sends your invoices, reminds every store on the schedule you set and offers payment plans, in your name. See how ShelfSpace accounts receivable works, or check where you stand today with the DSO calculator.