What payment terms should I give cafes?

14 or 30 days from invoice is common, with shorter terms or prepayment for new accounts. Direct debit removes most chasing.

Can I charge interest on late payments?

Under the Late Payment of Commercial Debts (Interest) Act 1998, businesses can usually claim statutory interest and fixed compensation on late commercial payments, unless the contract sets a substantial alternative.

Cafe account terms: credit, minimums and equipment on loan

Most bad debts and lost machines in roasting come from accounts opened on a handshake. The terms to put in writing before the first delivery, and how to enforce them politely.

7 min read Updated 9 October 2026

A short, clear set of trading terms protects your cash, your equipment and the relationship. Cafes are small businesses too, and many close; your terms decide whether you are paid and whether you get your grinder back. Have a solicitor review your standard terms once; then use them for every account.

What the terms should cover

Term	Typical approach
Payment terms	14 or 30 days from invoice; direct debit where possible; new accounts on shorter terms or prepayment
Credit limit	A maximum owed at any time, set from a credit check and order size
Late payment	Supply paused when overdue; statutory interest and compensation may apply to late commercial payments
Minimum order	A minimum per delivery, or a delivery charge below it
Delivery	Delivery days, order cut-off times, who signs for goods
Prices and reviews	Prices per kg by tier, how and when they can change, notice period
Retention of title	Coffee remains yours until paid for
Quality and complaints	How to report a problem and how long they have
Ending the agreement	Notice period, final invoice, return of equipment

Equipment on loan

Placing a grinder or espresso machine with a cafe is an investment that pays back only through coffee volume. Put it in a separate, signed equipment agreement:

Equipment agreement essentials

The equipment, with serial numbers and value, and that it remains your property
The minimum coffee volume per week or month, and the minimum term
What happens if volume falls short: a rental charge or a review
Who services it, who pays for repairs from misuse, and water filter changes
Insurance while it is on their premises
Your right to recover it on termination or insolvency, with access to the premises
A buy-out price if they want to keep it

Credit checks

For limited companies, check filed accounts and status at Companies House; for any account, a business credit report helps set a sensible limit. Ask for trade references for large accounts. Start new accounts on a modest limit and raise it with a payment record.

Enforcing terms without losing the account

Send statements monthly and reminders on the due date, automatically if you can
Call before you pause supply; most late payers respond to a friendly call
Pause supply at the agreed point every time; inconsistency teaches customers to pay last
For persistent late payers, move to prepayment or direct debit

Where Roastnet helps

Questions roasters ask

What payment terms should I give cafes?: 14 or 30 days from invoice is common, with shorter terms or prepayment for new accounts. Direct debit removes most chasing.
Can I charge interest on late payments?: Under the Late Payment of Commercial Debts (Interest) Act 1998, businesses can usually claim statutory interest and fixed compensation on late commercial payments, unless the contract sets a substantial alternative.

Official sources

Rules change. These sources were checked on 9 October 2026; always confirm the current position with the body that publishes them before you act.