A practical guide to vape wholesale payment terms: deposits, bank transfer fees, cash-flow math and the fraud checks before you pay a supplier.
Quick answer: Payment terms are part of the wholesale price. A supplier that asks for 100% upfront is not automatically a bad supplier, and a supplier that offers 60-day terms is not automatically a good one. The right terms match the supplier’s risk, your cash cycle and the size of the order. For most European vape shops, the safest starting model is a small first order paid in full, then a deposit-plus-balance structure once the supplier and the batch are proven.
This guide explains the common B2B payment terms in vape wholesale, how to compare them, how to protect cash flow and the documentation to keep. It is commercial guidance, not legal or tax advice.
1. The payment terms you will see
| Term | What it means | Typical use |
|---|---|---|
| 100% proforma | Pay the full invoice before dispatch | First order, small order, new supplier |
| Deposit + balance | Pay part upfront and the rest before or after dispatch | Repeat orders, larger quantities |
| Payment on delivery | Pay when the goods arrive | Rare in cross-border wholesale; usually only with a trusted local distributor |
| Net 15 / 30 / 60 | Pay a set number of days after the invoice | Established accounts with a credit agreement |
| Letter of credit | Bank guarantees payment against documents | Large international orders; adds bank fees |
Each term shifts risk. The supplier wants certainty before shipping; the buyer wants certainty that the goods exist and match the batch. A good agreement balances both without pretending the risk is zero.
2. Why a deposit is normal — and when it is not enough
For a first order, a supplier may ask for 100% before dispatch because it has no payment history with you. That is understandable. The protection for the buyer is not a lower deposit; it is a smaller order, a written specification and a clear replacement policy.
For repeat orders, a 30% deposit and the balance before dispatch is common. The deposit covers the supplier’s material or allocation; the balance is released when the goods are ready. Ask for photos or a video of the batch before paying the balance, especially for a new SKU.
A deposit should never be paid to a personal account or a chat link. Use the company bank account shown on the proforma invoice and verify the beneficiary name against the supplier’s registered name.
3. Bank transfer, currency and fees
Most EU B2B vape orders are paid by bank transfer. Ask:
- Which currency is the invoice in?
- Who pays the sending and receiving bank fees?
- Is the beneficiary name exactly the company name?
- Which reference should be included in the transfer?
- What is the cut-off time for the payment to be allocated to your order?
A “free” bank transfer can still cost €15–€40 in correspondent fees on an international payment. If the supplier’s invoice is in a different currency, the exchange rate and the fee can change the effective unit cost. Add them to the landed cost.
4. Cash-flow math
Payment terms only help if the stock sells before the balance is due. Use a simple cash cycle:
Cash cycle = days to sell the stock + days the customer takes to pay − days your supplier gives you to pay
Example: stock sells in 30 days, your retail customers pay immediately, and the supplier gives you 30 days. The cycle is roughly zero: the sale funds the next order. If the supplier gives you 0 days, you fund 30 days of stock from your own cash.
For a small shop, a €10,000 order with 30 days of cover can tie up €10,000 before the first reorder. The margin may look good on paper, but the cash is gone. A smaller order with slightly worse unit pricing can be the better business decision.
5. Payment terms and the landed cost
A supplier offering a 2% discount for early payment is offering a financial deal, not a product discount. Calculate the annualised value before taking it. If the discount requires cash you need for the next order, it may not be worth it.
Similarly, a longer payment term may come with a higher unit price. Compare the total cost over the payment period, not just the invoice price. Ask for both options in writing: “€10.00 at 30 days” versus “€9.80 at 0 days”.
6. Fraud and payment risk
Wholesale payments attract fraud. Common patterns include:
- A “new bank account” email that arrives just before payment.
- A beneficiary name that differs from the supplier’s company name.
- Pressure to pay a personal account or a crypto wallet.
- A proforma invoice with no company registration or VAT number.
- A price that is far below every other quote, with a request for full upfront payment.
Verify bank details through a second channel — a phone call to a known number, not a reply to the email. Keep the proforma invoice, the bank confirmation and the dispatch documents together.
7. What to put in the purchase order
- Product, batch, quantity and unit price.
- Incoterm and named place of delivery.
- Deposit amount, balance amount and due dates.
- Bank details and currency.
- Dispatch window and lead time.
- Replacement/return policy for defects.
- Documents to be supplied with the shipment.
A purchase order with these fields prevents most disputes. If the supplier will not confirm them in writing, the payment terms are not the real problem — the supplier is.
8. A practical first-order policy
For a new supplier, our trade desk recommends:
- Start with a small order that can be sold within two to four weeks.
- Pay in full only after the batch and documents are confirmed.
- Inspect the goods on arrival and record any issue with photos.
- Once the supplier has delivered correctly twice, negotiate a deposit/balance structure.
- Only move to net terms after a documented payment history and a written credit agreement.
Trust is built by repeat performance, not by a discount. A supplier that delivers a small order correctly is a better long-term partner than one that offers a large credit line before it has proved the basics.
FAQ
Should I pay 100% upfront to a new vape supplier?
Only for a small first order after checking the company, bank details, batch and documents. Avoid large upfront payments to an unverified supplier.
Are 30-day payment terms realistic for a small shop?
They can be, but they are usually reserved for established accounts. A new supplier is more likely to ask for a deposit or full payment before dispatch.
Who pays the bank fees?
It depends on the agreement. Ask the supplier to state who pays sending and receiving fees, and include the cost in your landed cost.
What to do next
- Ask two suppliers for the same order with their payment terms in writing.
- Calculate the cash cycle and the landed cost for each option.
- Verify the bank details through a second channel.
- Start with a small order and a written replacement policy.
Payment terms are a tool for managing risk, not a sign of trust. The best terms are the ones that let you sell the stock before the cash runs out.
VapeEazy supplies B2B buyers across Europe. This guide is commercial information, not legal, tax or financial advice. Confirm VAT, customs and payment obligations with your accountant or adviser.
Sources and further reading: VapeEazy — How to choose a wholesale supplier · VapeEazy — DDP vs DAP · VapeEazy — How to read a wholesale price list · European Commission — Taxation and Customs Union · European Commission — Tobacco Products Regulation
Related: Wholesale catalogue · Request a quote · Contact the trade desk
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