How to Enforce Payment Terms and Keep Customers Happy
Getting paid on time should never feel like a standoff. In fact, there shouldn't be any friction. But if you’re running a winery or CPG brand that sells wholesale, you’ve probably had to chase down a payment or wait weeks longer than promised to see cash come in. It’s exhausting, and it makes managing your business a whole lot harder than it needs to be.
I’ve worked with founders who were afraid to press the issue—worried they’d seem difficult or risk losing the account. So they waited. They let the invoice slide “just this once.” Then it happened again. Before long, cash flow was tight, collections were a mess, and their best customers had become their worst liabilities.
At BBG, I help founders move from hoping they’ll get paid to confidently managing accounts receivable with systems that protect cash flow and customer relationships. It starts by treating payment terms not as a nicety, but as a business-critical policy.
Why Payment Terms Are Business Critical
When you’re just starting out, it’s tempting to say yes to any customer terms that help close the deal. I’ve seen brands offer Net 60 or even Net 90 to big-name buyers without fully thinking through what that means for cash. On paper, those deals look exciting. But in practice, they create long gaps between production costs and payment—and that kind of gap puts enormous pressure on your operations.
A winery might have a strong Q3 with several large wholesale shipments. If they let invoices sit open well past the due date in the name of keeping the relationship warm, all that hard work can feel like it's for nothing. If you've already paid for glass, corks, marketing, and labels months ago, you need to see money coming in.
Payment terms directly affect how you forecast and make operational decisions. If your receivables are unpredictable, so is your ability to hire, replenish inventory, launch a new campaign, or plan your next production run.
And the truth is that customers take their cues from you. When payment terms are vague or unenforced, it signals that they’re optional. If you make them clear and documented, and follow up consistently, you come across as professional—not pushy.
Learn about the bigger picture in our Ultimate Guide to Winery Accounting.
Set Clear Terms That Work for You (and the Customer)
If you want to enforce payment terms, you have to start with the right ones. That means choosing a structure that supports your business model, reflects how long it takes you to turn inventory into cash, and fits the risk profile of your customers.
For smaller wholesale orders or DTC subscribers, Net 15 might be appropriate. For established retail partners, Net 30 is more common. I usually advise against going beyond Net 30 unless there’s a very compelling strategic reason—and even then, you need clear guardrails in place.
Imagine a CPG founder who offers every wholesale customer Net 45, regardless of order size. If the company’s cash conversion cycle is only 21 days—they'd be waiting more than twice as long to get paid as they need to. If this happened, we'd run a customer segmentation analysis and restructure the terms. Key retailers can keep Net 30, smaller accounts can move to Net 15, and all new customers will be required to prepay their first order.
When setting terms, think about:
How long it takes you to convert raw materials into sellable goods
The typical payment behavior of your existing customers
Whether you’re carrying the financial risk of production or passing some of it onto the buyer
Once you’ve decided what works, put your terms in every customer contract, include them on every invoice, and mention them in your onboarding materials. Clarity is your best friend here.
Communicate Terms Early, Often, and Without Apology
Enforcement doesn’t work if your customers never really understood the terms to begin with. I tell founders to talk about payment early, before it’s ever an issue. Normalize it. Make it part of your sales and onboarding process instead of a confrontation that happens when someone’s 10 days late.
Here’s language I’ve used with clients:
“We’re excited to get started. We operate on Net 30 terms, and we include that in all our customer agreements and invoices so everything’s clear. Let me know if you have any questions.”
It’s not aggressive. It’s professional, proactive, and confident.
You can communicate your terms across:
Order forms
Contracts or NDAs
Invoices and payment portals
Sales calls and email follow-ups
If it’s part of every customer touchpoint, it won’t feel like a surprise when you enforce it. And when you say it without flinching, customers rarely push back.
Enforce Consistently—Without Burning Bridges
Enforcing payment terms consistently is where most founders get stuck. You’ve set the terms, but the invoice is overdue, and now it feels awkward. Do you follow up? Do you wait another week? Do you charge a late fee and risk upsetting someone?
I’ve walked dozens of clients through this. And I always remind them that consistent enforcement builds trust. It shows your company runs professionally and respects its own policies.
Here’s a step-by-step approach we’ve used with great results:
Friendly reminder: Send a payment reminder the day the invoice is due. Keep it simple:
You could say, “Just a quick note that your invoice #123 is due today. Let us know if you need a copy or have any questions.”Follow-up email (3–5 days late): Slightly firmer tone, reiterate terms.
For example, "We noticed invoice #123 is past due. As a reminder, our terms are Net 30. Please process payment at your earliest convenience."Phone call or direct email (7–10 days late): Speak directly to the contact. Ask if there’s an issue.
Late fee notice (if applicable): If you’ve outlined late fees in your terms, now’s the time to apply them.
Pause orders or withhold service: As a last resort, explain that future shipments are paused until payment is made.
What helps ease the tension is having these steps built into your accounts receivable systems. With the right AR tools and finance partner, reminders go out automatically. You’re not chasing payment manually—you’re simply managing a process that already reflects your company’s standards.
And no, enforcing terms doesn’t have to ruin a relationship. In fact, when done respectfully, it can strengthen trust. Customers want to work with brands that are organized, communicative, and financially stable. That stability often starts with your AR process.
Revisit and Refine Terms Over Time
Payment terms are dynamic, and they should evolve with your business.
I recommend reviewing your AR practices quarterly, or anytime something major changes. Think new product lines, shifts in customer mix, cash crunches, or expanded distribution. You might find that your Net 30 terms are dragging cash flow when production volume spikes. Or that certain customers are habitually late and need stricter boundaries.
You can also adjust:
Onboarding requirements for new accounts
Prepay policies for higher-risk or seasonal customers
Discounts for early payment
Thresholds for when to pause service
If your current terms aren’t working, change them. If you’re not sure what needs to change, we can help you map that out.
For more on financial decision-making as your brand grows, check out The 5 Most Important KPIs for Emerging CPG Brands.
Protect Your Cash Flow—And Your Customer Relationships
Enforcing payment terms protects your ability to keep producing great products, serving your customers, and growing your brand. You can hold firm to your terms and still be an outstanding partner.
In my work at BBG and in my years managing AR at wineries, I’ve seen what happens when founders delay these conversations. And I’ve seen how quickly things improve once payment terms become part of a consistent, professional system.
If you're feeling nervous about where to start, start small. Review your current terms or have one proactive conversation this week.
Better yet, let’s work through it together. Reach out, and we’ll build a payment system that supports your cash flow and your customer relationships.
