Faire's Net 60 Inventory Financing

Net 60 is less a checkout perk than a credit product that helps Faire pull wholesale ordering online. Independent shops usually have to pay suppliers before they have sold the goods, which limits how many new brands they can test. On Faire, approved retailers can place the order first and pay later, while brands still get paid on Faire’s payout schedule, which makes the marketplace feel safer for both sides and gives Faire a stronger grip on the payment flow.1 2 3 4 5

• The practical effect is inventory financing. Faire says eligible retailers can buy now and pay 60 days later, and if an order takes more than 14 days to ship, the due date shifts to 60 days from shipment. That gives a shop time to receive, merchandise, and start selling product before cash leaves the bank account.2 3
• This is only possible because Faire sits in the middle of the money flow. Retailer payments and brand payouts are handled separately, and Faire states that a retailer’s payment terms do not affect when the brand gets paid. In other words, Faire is effectively advancing cash into the transaction and underwriting retailer risk using platform data and credit limits.1 2 4 5
• It is also a competitive wedge versus both old wholesale and lighter weight alternatives. Traditional wholesale often asks for upfront payment, while Trendsi removes inventory risk even further through dropshipping, where the retailer does not buy stock in advance at all. Faire’s version still requires committing to inventory, but net terms and first order returns lower the jump enough to increase ordering frequency and supplier discovery.5 6 7

The next step is deeper embedded finance. Once a marketplace controls ordering, payment timing, and repayment data, it can keep expanding credit limits, tailor terms by retailer quality, and turn financing from a conversion tool into a profit center. For Faire, that pushes the business beyond product discovery toward becoming the operating layer for wholesale purchasing.4 5