When prebiotic soda brand Poppi landed shelf space at major national retailers including Walmart, Target, and Whole Foods, it marked more than a distribution milestone. It triggered a fundamental shift in how the company manages cash flow. Unlike direct-to-consumer checkout payments that settle in days, wholesale invoicing creates extended collection cycles that can trap significant working capital between production and payment. This timing gap forces brands to fund retailer inventory for weeks or months before seeing revenue. Net terms management platforms can bridge this gap, but understanding the mechanics of wholesale payment terms is essential for any DTC brand planning retail expansion.
The shift from DTC to wholesale fundamentally changes when and how a beverage brand gets paid. Shopify deposits hit accounts in days, but wholesale payment terms operate on an entirely different timeline that can stretch weeks or months.
Wholesale payment terms define when buyers must pay after receiving goods or invoices:
The stated terms rarely reflect actual collection time. Processing delays, invoicing errors, retailer deductions, and dispute resolution can add weeks beyond the contractual due date. Actual collection often exceeds stated terms because of approval workflows, documentation requirements, deductions, returns, and dispute resolution processes.
Payment terms reflect retailer leverage and industry practices rather than brand preference. Major national chains enforce terms according to their procurement policies, order size, negotiating position, buyer credit profile, and vendor agreements. Regional chains often negotiate terms between Net 30 and Net 60 based on brand demand and relationship history.
Understanding these variations helps brands forecast working capital needs before signing distribution agreements. Large wholesale orders can significantly increase the amount tied up in production, inventory, and accounts receivable before payment arrives.
DTC brands launch with immediate payment models that mask the financial complexity of wholesale expansion. The moment a brand enters major retail, payment dynamics shift dramatically.
Direct-to-consumer operations generate predictable cash flow:
This model works effectively at a smaller scale but limits addressable market reach. Brands relying solely on DTC miss the substantial portion of beverage purchases happening in physical retail locations, where most consumers still prefer to shop for beverages.
Poppi's trajectory illustrates the strategic logic behind retail expansion. PepsiCo completed its acquisition of Poppi in 2025, demonstrating the strategic value of brands with strong consumer demand and retail distribution. The brand operates an omnichannel model combining ecommerce, digital demand generation, and national retail distribution across major chains. This approach reflects deliberate strategy:
The challenge comes from the fundamentally different financial characteristics of these two models, requiring distinct accounts receivable management approaches.
The gap between DTC and wholesale payment timing creates what industry experts call the "growth paradox." Landing major retail placements can drain liquidity instead of boosting it because brands must fund production before receiving payment.
A brand can show profitability on paper and still face cash shortages because working capital is tied up funding the next production run. Working capital requirements are calculated as:
Daily COGS × Cash Conversion Cycle (in days) = Working Capital Required
For a brand with $10,000 daily cost of goods sold and a 30-day cash conversion cycle, $300,000 in working capital is required just to maintain operations. As revenue scales, the absolute dollars trapped in this cycle grow proportionally. Federal Reserve research confirms that payment timing and cash flow management are significant concerns for small businesses across industries.
Beverage brands face upfront costs long before retailer payments arrive:
When major retailers pay on extended terms and these costs come due in weeks, the timing mismatch creates pressure. Brands must calculate and control cash burn carefully to maintain sufficient runway during growth phases.
Different financing structures align better or worse with wholesale cash cycles:
Revenue-based financing requires repayments to begin immediately upon funding, but brands using capital to fund retail orders won't see payments for extended periods. This can create cash flow mismatches where financing payments drain operating cash before retailer payments arrive.
Purchase order financing pays suppliers directly against confirmed retail orders, with repayment structures that can be aligned more closely to when retailers actually remit payment. This approach matches capital availability to the retailer payment schedule.
Receivables financing converts slow-paying invoices into more immediate cash flow. Non-recourse structures can shift qualified buyer default risk to the financing provider rather than keeping it on the brand's balance sheet.
Beyond payment terms, DTC brands must adapt operations to wholesale requirements that add operational complexity and cost.
Wholesale operations demand capabilities DTC brands often lack:
Co-packing arrangements can reduce the need to build manufacturing facilities while still requiring careful planning, quality control, compliance management, and inventory oversight. Brands building their own infrastructure face substantial upfront capital investment.
The wholesale order-to-cash cycle often suffers from manual handoffs where the actual work happens quickly but waiting time between steps creates delays:
Automating these handoffs eliminates avoidable delays in invoicing, reconciliation, and collection workflows, potentially freeing weeks of trapped working capital without requiring external financing.
Manual AR processes that work adequately for a handful of wholesale customers break down completely as brands scale to dozens or hundreds of retail accounts.
Comprehensive AR automation includes:
These systems eliminate the waiting time and error-correction loops that add days or weeks to collection cycles while reducing the manual workload on finance teams.
For CPG brands operating in the multi-million dollar revenue range where wholesale represents the primary growth engine, reducing the order-to-cash cycle from extended periods to shorter windows can unlock substantial working capital. Brands with significant wholesale revenue may have considerable sums trapped in receivables at any given time under manual processes. Reducing that through automation and systematic collections frees capital for production, marketing, or additional retail expansion without taking on debt or diluting equity.
Not every retailer pays reliably. Credit risk assessment becomes critical as brands expand beyond established national chains to regional grocers, specialty stores, and independent retailers.
Before extending Net 30 or longer terms to new retail accounts:
Non-recourse financing structures can shift qualified buyer credit-default risk from the brand to the financing provider. Qualifying advances are non-recourse for covered buyer credit-default risk, subject to the applicable agreement and transaction requirements. This protection becomes valuable as brands expand to less established retail accounts where credit risk is harder to assess independently.
Key considerations for non-recourse structures:
Brands don't abandon DTC when entering retail. They leverage it strategically. Strong DTC operations create retail advantages that accelerate wholesale success.
Poppi's viral TikTok presence and influencer partnerships built brand awareness before retail buyers evaluated the product. This demand generation creates:
Successful brands maintain robust DTC channels even as wholesale grows:
The B2B payment infrastructure supporting wholesale must integrate with DTC systems for unified financial visibility and management.
Managing the transition from DTC to wholesale payment terms requires financial infrastructure that most emerging brands don't have internally. Resolve Pay provides the financing and automation specifically designed for this challenge.
When retailers order on Net 60, Net 90, or longer terms, Resolve Pay may advance funds on qualifying invoices from approved buyers, subject to underwriting, verification, invoice eligibility, banking schedules, and program terms. Brands can receive upfront capital while buyers continue paying on their established terms, helping eliminate the extended wait that strains working capital during growth.
Rather than spending days on manual trade reference calls and spreadsheet credit tracking, Resolve Pay's credit assessment workflow evaluates buyer creditworthiness efficiently. Some eligible workflows may produce rapid decisions, while others require additional information or manual review depending on the buyer, transaction structure, and available data.
Qualifying Resolve Pay advances are non-recourse for covered buyer credit-default risk, subject to the applicable agreement and transaction requirements. If an approved retailer experiences a covered credit default, the brand isn't left absorbing the loss. This structure lets brands extend competitive terms to new retail partners with greater confidence. Important exclusions include disputes, fraud, returns, invalid invoices, fulfillment failures, and other non-credit issues that remain the brand's responsibility.
From invoice generation through payment reconciliation and collections workflows, Resolve Pay supports invoicing, payment tracking, reminders, collections, reconciliation, and receivables reporting. Automated workflows preserve professional customer relationships while systematically reducing DSO and freeing finance teams from manual AR tasks.
Resolve Pay supports integrations with QuickBooks Online, Xero, Sage Intacct, NetSuite, Magento 2, and BigCommerce, along with API-based custom implementations. Integration features and scope depend on the system and implementation approach. These connections enable automated data flow between order management, fulfillment, invoicing, and financial systems.
For beverage brands navigating the DTC-to-wholesale transition, Resolve Pay provides the financial infrastructure to offer competitive payment terms without building an internal credit department or draining cash reserves during growth phases.
Net 30 represents the floor for most wholesale relationships, with Net 60 common for established partnerships. Major retailers enforce varied terms based on their procurement policies, order volumes, and negotiating leverage. Actual collection time often exceeds stated terms due to processing delays, documentation requirements, and deductions.
Successful brands use multiple strategies including maintaining omnichannel models that balance wholesale volume with higher-margin DTC sales, using receivables financing to accelerate cash from slow-paying invoices, negotiating supplier payment terms strategically, and automating AR processes to minimize avoidable collection delays.
DTC involves selling directly to end consumers through owned channels with immediate payment and stronger margins but limited physical reach. Retail distribution reaches consumers through physical stores with larger volume potential but requires wholesale pricing, extended payment terms, and complex logistics and compliance requirements.
AR automation platforms handle invoice generation synced from order systems, multi-channel payment reminders, real-time reconciliation matching payments to invoices, and systematic collections escalation. These systems eliminate manual bottlenecks and waiting time, potentially freeing significant working capital trapped in receivables.
Non-recourse structures can shift qualified buyer credit-default risk from the brand to the financing provider on approved transactions. This protection enables brands to extend competitive terms to new retail accounts without building large bad debt reserves, though valid disputes, returns, and fulfillment issues remain the brand's responsibility.
This post is to be used for informational purposes only and does not constitute formal legal, business, or tax advice. Each person should consult his or her own attorney, business advisor, or tax advisor with respect to matters referenced in this post. Resolve assumes no liability for actions taken in reliance upon the information contained herein.