The short answer
Before you give a store net 30, your wholesale credit application should collect the store's legal name and tax ID, owners, an accounts-payable contact, a resale certificate, three trade references, a bank reference, the terms and limit requested, signed acceptance of your terms, and written permission to check credit. Then verify it and start with a modest limit.
The form is the easy part. The decision you make with it—who gets terms, how much, and when that changes—is what protects your cash. This guide gives you both: a field-by-field template you can copy and a simple terms ladder for moving stores from prepaid to net 30.
Why a credit application matters for small wholesale brands
When you ship on net 30, you are lending a store your inventory, interest-free, for a month or more. If a $1,200 opening order for trail socks and daypacks goes unpaid, you have lost the goods, the freight, and the hours spent chasing the invoice.
Owner-operated brands usually skip the paperwork because the buyer seems great and the order feels urgent. That is exactly the moment to slow down. MannyPay's guide to vetting buyers before net 30 puts it well: an application lets you grant terms based on evidence, gives you collection options if things go wrong, and sets expectations before the first shipment.
A trade credit application also fixes the most common cause of "late" payments that are not really late: the invoice went to the wrong person. TermsPilot's credit application template calls the accounts-payable contact the single highest-value line on the form, and that matches what most brands learn the hard way.
Selling wholesale to independent stores? Set up your brand on Ordrly—Core is $0/month.
The wholesale credit application template
Copy these sections into a one- or two-page document on your letterhead, or a form in whatever tool you already use. Keep every field; each one either helps you decide or helps you collect.
Section 1: Business information
Legal business name (as registered) and any DBA / store name
Entity type (sole proprietor, partnership, LLC, corporation) and state of formation
Federal EIN or tax ID
Years in business under the current name and entity
Physical store address, billing address, and all ship-to addresses
Phone, email, and website or social pages
Own or lease the premises
Section 2: Ownership and contacts
Owners or officers: name, title, ownership percentage
Buyer(s) authorized to place orders
Accounts-payable contact: name, direct email, direct phone
Invoice delivery email and whether invoices need a PO number
Section 3: Resale certificate and tax status
State resale or sales-tax exemption certificate number
Upload or attach a copy of the certificate
For US stores, the resale certificate supports not charging sales tax on wholesale orders. Rules vary by state, so confirm what you need to keep on file.
Section 4: Trade references
Ask for three suppliers that currently extend the store credit (not card or prepaid vendors). For each:
Supplier name, contact person, phone, email
Years the store has bought on terms
Terms extended (for example, net 30) and approximate credit limit
Section 5: Bank reference
Bank name, branch, and phone
Account officer name, if available
Type of account (checking) and approximate time open
Section 6: Terms and limit requested
Requested payment terms (net 15, net 30)
Requested credit limit
Expected opening order and expected monthly or seasonal purchases
Preferred payment method (ACH, card, check)
Section 7: Your terms of sale
Print your actual terms on the application so the buyer accepts them before the first shipment:
When the clock starts (for example, "Net 30 from invoice date")
Late charge, if any, and that it will not exceed what the law allows
Your right to set, change, or revoke credit limits and terms
Credit hold rule (no new shipments while an invoice is past due)
Window to report shortages or damage
Brandboom's net 30 guide makes a useful point here: name the start date and print the due date as a calendar date, and agree any late charge in writing before the first order ships.
Section 8: Personal guarantee (optional)
Separate, clearly labeled section
Guarantor's full name and home address, signed in a personal capacity
Whether the guarantee is capped or covers all balances
Section 9: Authorization and signature
Statement that the information is true and complete
Authorization to contact listed trade and bank references and to obtain business credit reports
Separate written consent from any guarantor before you pull a personal credit report
Signer's name, title, date, and a statement that they are authorized to bind the business
Not legal advice: personal guarantees, late charges, and consent to check personal credit are governed by federal and state law. Have a business attorney in your state review your application and terms before you use them.
How to verify the application in under an hour
An application nobody checks is just paperwork. For a small brand, three quick steps cover most of the risk.
Call one or two trade references
Introduce yourself as a fellow supplier and ask specific questions:
How long have they bought from you on terms?
What terms and limit do you give them?
On average, how many days do they take to pay?
Have they ever been on credit hold?
A vague "they're great" with no days-to-pay answer tells you less than it seems. Watch for references that are related companies, or suppliers that only sell the store tiny amounts.
Confirm the business is real
Match the legal name and address to the resale certificate and the store's public listing. A real storefront, a working website, and an AP contact who answers are basic but meaningful signals.
Check the bank reference for larger limits
Banks typically share limited information and usually need the customer's written authorization—which is why that consent belongs in Section 9. For a small opening order, many brands skip this step; for a bigger limit, it is worth the call.
The terms ladder: prepaid to net 30 to higher limits
A terms ladder lets you say yes to new stores without giving every door the same credit. The rungs below are a practical suggestion for small brands, not an industry standard or a statistic. Adjust the order counts and limits to your margins and what you can afford to lose on one account.
Rung | Who it fits | Terms | What moves them up |
|---|---|---|---|
1. New account | First order, no history with you, or no application yet | Prepaid, card at order, or a deposit | Completed application, references check out, first order paid |
2. Starter terms | Verified store with clean references | Net 15 or net 30 with a small limit (for example, about one typical order) | Two or three invoices paid on time |
3. Standard terms | Store with an on-time record and steady reorders | Net 30 with a limit sized to one terms cycle of purchases | Several on-time cycles and growing reorders |
4. Earned terms | Proven, long-standing accounts | Higher limit; longer terms only if your cash can carry them | Keeps the rung only while paying on time |
Step down | Any account paying late | Credit hold, then back to prepaid or card | Brings the balance current |
Two rules make the ladder work. First, write the move-up and step-down triggers down so you apply them the same way to every store. Second, enforce the hold: no new shipment while an invoice is past due, no matter how big the next order is.
How to size a starting limit
Start with the store's own estimate of monthly purchases, then compare it to what its references extend. Open at or below the low end of both, and below what you could absorb if the account never paid. Review limits on a schedule and any time days-to-pay creeps up, order size jumps without explanation, or ownership changes.
Where Ordrly fits
Ordrly is a brand-to-retailer wholesale ordering and reorder network. You still decide who gets terms—net terms are offered by brands to the retailers they approve. What Ordrly takes off your spreadsheet, per its net terms and credit management help article:
Net terms configured per retailer (for example, Net 30) with an optional credit limit and an active/inactive toggle—so each rung of your ladder becomes a setting.
Credit validation at checkout: if an order exceeds the retailer's available credit, or the terms record is inactive, net terms can't be selected for that order.
Automatic invoices with a due date, due-soon and overdue reminder emails, and partial payment tracking.
Invoice payments processed through Stripe, with your payout released after the retailer pays. Ordrly does not advance funds on net terms orders.
For eligible brands, Ordrly's features page lists embedded trade finance as live: AR, credit underwriting, and collections. Eligibility and partner rules apply, and it is not an unconditional guarantee—confirm what applies to your account. It is not financing for retailers.
Your application template still matters: use it to decide each store's rung, then set the matching terms and limit when you approve the connection. Create your free brand account and send approved stores one ordering link instead of PDFs and email threads. Retailers can join Ordrly free.
If terms are squeezing your cash, our guide to wholesale cash flow solutions compares terms ladders, factoring, credit lines, and managed trade credit side by side.
Common mistakes to avoid
Skipping the form because the first order is big. Large first orders are when checking matters most.
No AP contact. "Just send invoices to me" from a busy owner is how day 30 becomes day 75.
Terms only on the invoice. Get late charges and hold rules accepted on the application, before you ship.
One policy for every door. A ladder matches credit to history.
Storing card numbers in email or spreadsheets. If you keep a card on file as a backstop, use your payment processor's secure storage.
FAQ
How many trade references should a wholesale credit application ask for?
Three is common, and calling at least one is the real check. Ask for suppliers that currently extend net terms, not vendors the store pays by card or prepaid.
Should a new store get net 30 on its first order?
Usually not. The first order carries the most risk because the store has no payment history with you. Start with prepaid, card, or a deposit, and move to net 15 or net 30 once the application checks out and early invoices are paid on time.
Do I need a personal guarantee?
It is optional. A guarantee matters most when the store is a young LLC or corporation with few assets. Many brands waive it for established stores with strong references. Have an attorney review the wording; this is not legal advice.
Can I run a credit check on a retailer?
Get written authorization on the application before contacting banks or pulling credit reports, and a separate signed consent from any personal guarantor before pulling personal credit. Requirements vary, so ask counsel what applies where you operate.
What is the difference between a trade credit application and a net 30 application form?
They are usually the same document. "Net 30 application" names the most common terms requested; "trade credit application" is the broader term for any request to buy on credit from a supplier.
Does Ordrly give retailers credit?
No. Brands offer net terms to the retailers they approve. Ordrly manages those terms, limits, invoices, and reminders, and for eligible brands offers embedded trade finance covering AR, credit underwriting, and collections.
Put your terms ladder to work
Copy the template, write down your four rungs, and send the application with your next line sheet. Then stop tracking limits and due dates in a spreadsheet.
Brands: Start on Ordrly Core for $0/month and set net terms and credit limits per retailer, with a 1.5% Network Fee only when an order runs through Ordrly. See all plans.
Retailers: Join Ordrly free and order from connected brands at live wholesale price and stock.