Wholesail surveyed food and beverage buyers to see how payment deadlines affect ordering. Here’s what vendors need to know.
Yes, the credit terms you offer impact how much your buyers buy.
Wholesail surveyed 10,000 food and beverage buyers.* We looked at how decision-makers in restaurants and businesses viewed payment terms and learned that many of your buyers would order more – if they had longer to pay.
In fact, 81% of respondents said short credit terms have led them to push back or restrict their buying. Interestingly, of those same buyers, most (60%) would order more if given longer credit terms. And 18% would increase their orders by more than 50%.
“The shorter the terms the less I buy. The longer the terms the more I buy.” - Grocery store in California
“Better terms, more money spent with them.” - 30+ unit restaurant group in Nevada
Are longer credit terms worth the risk?
Wholesail helps distributors, producers, and service providers automate accounts receivable. Over the years, we have listened to the challenges vendors face. So we understand why many of our food and beverage customers prefer terms like Net-7, Net-3, and even COD.
Longer terms can be risky. But our survey revealed another risk: 70% of buyers would switch to vendors offering better payment terms.
“I only work with vendors who are okay with 30-day terms.” - New York-area catering company
Wholesail’s credit tools help reduce risk
In today’s world, it’s essential to understand the financial reliability of your buyers. Our unified platform makes it easy.
- Simplify onboarding. Build up to 10 custom online forms to capture bank data, trade references, and terms in a single step.
- Reduce risk. Require buyers to save a payment method before placing orders or ask them to sign up for Autopay. Buyers can securely connect their bank account so you can see real-time balances and cash flow.
- Speed up decisions. Move beyond slow trade references and outdated bureau reports and see fresh financial data instead.
- Remove the guesswork. Lighthouse powers instant credit decisions. It lets you see how new prospects and existing customers pay other vendors, so you can set terms and manage risk with facts.
Increase ordering and retain more buyers without the risk
Wholesail is the largest accounts receivable and credit workflow network in the food and beverage industry. We work with 400+ vendors and 100,000+ buyers, processing billions annually. Our platform simplifies and modernizes the accounts receivable process, helping to enhance customer relationships, reduce risk, and grow sales with confidence.
Curious how Wholesail can work for you? Schedule a demo today.
* Wholesail randomly selected 10,000 users at companies that receive invoices and statements via Wholesail, including owners, accounts payable staff, and chefs. Half were active Wholesail users. Respondents received a $20-25 Amazon gift card to complete the survey. Of 10,000 emails sent, > 3.8k emails opened (38%) > 181 survey clicks (5%) > 76 completions (42%).
