Faire Payment Terms Explained:
60-Day Net Terms & Flexible Payments

Step 1: Retailer Places Order

A retailer discovers your products on Faire and places an order. If the retailer is eligible for 60-day payment terms, they don't pay immediately,Faire extends credit.

Step 2: Faire Extends 60-Day Net Terms

Faire extends 60-day net payment terms to eligible retailers, meaning the retailer has 60 days from the order date to pay for their purchase. This is significantly longer than traditional wholesale's typical 30-day terms.

Step 3: Brand Ships Products

You ship the products to the retailer immediately, just like any other wholesale order. The retailer receives their products without paying upfront.

Step 4: Faire Pays Brand (Next Day or Net 30)

Brands can select when they want to receive payment, regardless of when the retailer pays. Choose ACH Next Day to receive funds the day after shipment is in transit (with a 3% processing fee), or ACH Net 30 to receive funds 30 days after shipment with no fees.

Step 5: Faire Collects from Retailer (Within 60 Days)

Faire handles payment collection from the retailer within the 60-day window. Faire manages credit risk, payment reminders, and collection efforts,you don't have to.

Step 6: Faire Assumes Credit Risk

If a retailer pays late or defaults, Faire assumes the credit risk, not you. You've already been paid, so you're protected from bad debt. This is a major advantage over traditional wholesale.

Creditworthiness Assessment

Faire evaluates retailers' creditworthiness based on:

• •Business credit history and score
• •Payment history on Faire (if existing customer)
• •Business financials and stability
• •Order history and volume

Order History Requirements

Retailers with a positive payment history on Faire are more likely to qualify for 60-day terms. New retailers may start with shorter terms or upfront payment requirements until they establish a track record.

Geographic Considerations

Payment terms availability may vary by region. North American retailers typically have the best access to 60-day terms, while international retailers may have different terms based on local regulations and Faire's risk assessment.

What If Retailers Don't Qualify?

Retailers who don't qualify for 60-day terms may still be able to order, but they'll need to pay upfront or use shorter payment terms. This doesn't affect your payout,you still receive payment according to your payout schedule.

Improved Cash Flow

Retailers can receive products, sell them to customers, and generate revenue before paying for the wholesale order. This improves cash flow and reduces the need for upfront capital.

Reduced Upfront Capital Requirements

Small retailers don't need large amounts of upfront capital to stock inventory. They can order more products and test new brands without tying up cash.

Ability to Test New Brands Risk-Free

Combined with Faire's free returns policy, retailers can try new brands with minimal financial risk. They have 60 days to pay and can return products if they don't sell.

Flexibility During Slow Seasons

Retailers can stock up before busy seasons without immediate payment pressure. They can pay after the busy season when cash flow improves.

Larger Order Sizes

With 60-day terms, retailers can place larger orders than they could afford with upfront payment, potentially qualifying for better pricing and reducing per-unit shipping costs.

Reduced Payment Risk

Faire assumes credit risk, so you're protected from bad debt. If a retailer defaults, Faire absorbs the loss, not you. This is a major advantage over traditional wholesale where brands often assume credit risk.

Faster Cash Flow

You receive payment next day or within 30 days instead of waiting 60 days for retailers to pay. This improves cash flow and reduces the need for working capital.

No Payment Collection Work

Faire handles all payment collection, reminders, and follow-ups. You don't need to chase payments or manage accounts receivable, saving time and administrative costs.

More Attractive to Retailers

Flexible payment terms make your products more attractive to retailers, especially small retailers who may not be able to afford upfront payment. This can increase conversion rates and order sizes.

Reduced Bad Debt Exposure

Since Faire assumes credit risk, you're protected from retailer defaults. This reduces bad debt write-offs and improves overall profitability.

How do Faire payment terms work?

Faire offers 60-day net payment terms to eligible retailers, meaning retailers have 60 days from the order date to pay for their wholesale orders. Faire handles credit risk and payment collection, paying brands according to their chosen payout schedule (ACH Next Day or ACH Net 30). Brands receive payment regardless of retailer payment timing, as Faire assumes the credit risk. This system benefits retailers by improving cash flow and benefits brands by reducing payment risk and administrative burden.

What are Faire's 60-day payment terms?

Faire's 60-day net payment terms allow eligible retailers to pay for wholesale orders 60 days after the order date, rather than paying upfront or upon delivery. This is significantly longer than traditional wholesale's typical 30-day terms. Faire handles credit risk and payment collection, so brands receive payment according to their payout schedule regardless of when retailers pay. Not all retailers qualify for 60-day terms; eligibility is based on creditworthiness and order history.

Can you explain how Faire's payment terms work?

Faire's payment terms work as follows: (1) Retailer places order and receives products, (2) Faire extends 60-day net payment terms to eligible retailers, (3) Faire pays brands according to their payout schedule (ACH Next Day: next business day with 3% fee, ACH Net 30: 30 days after shipment with no fees), (4) Faire collects payment from retailers within 60 days, (5) Faire assumes credit risk if retailers pay late or default. Brands receive payment regardless of retailer payment timing, reducing payment risk compared to traditional wholesale.

How do Faire payment terms benefit retailers?

Faire's 60-day payment terms benefit retailers by: improving cash flow (retailers can sell products before paying), reducing upfront capital requirements, allowing larger order sizes, reducing financial risk when trying new brands, and providing flexibility during slow seasons. This is especially valuable for small retailers who may struggle with traditional wholesale's upfront payment requirements.

How do Faire payment terms benefit brands?

Faire payment terms benefit brands by: reducing payment risk (Faire assumes credit risk), eliminating payment collection work, providing faster cash flow (brands receive payment next day or within 30 days vs waiting 30-60+ days), reducing bad debt exposure, and making products more attractive to retailers (flexible terms increase conversion). Brands can choose ACH Next Day (faster, 3% fee) or ACH Net 30 (no fees, still faster than traditional wholesale).

What are Faire payout options for brands?

Faire offers two payout options: ACH Net 30 (funds transfer 30 days after shipment, 0% processing fees) and ACH Next Day (funds transfer next business day after shipment, 3% processing fee on order and shipping costs). Brands can choose based on cash flow needs. Net 30 eliminates fees entirely, saving 3% on all orders. Next Day provides immediate access to funds but costs 3%. Funds appear in your bank account within 1-2 business days of payment being processed.