How to Protect Your Brand from Bad Purchase Orders

Every growing CPG brand dreams of getting that big purchase order. It’s validation. It’s growth. But it can also be a trap. As your brand scales into retail and foodservice, the risks tied to large POs increase—especially when the buyer is new or slow to pay. One unpaid invoice can derail your cash flow. One chargeback can cost you more than the product was worth. This guide walks you through how to manage those risks without slowing your momentum.

Set Clear Deal Thresholds Before Accepting a PO

Not every customer deserves immediate credit terms or high-volume access. Before accepting a large order, ask yourself:

  • Does this buyer have a payment track record I trust?

  • Can we fulfill this PO and maintain inventory for existing accounts?

  • What’s the worst-case scenario if we don’t get paid on time?

Create internal thresholds. For example:

  • No POs over $5,000 without a credit check.

  • No more than 30% of your monthly production allocated to new customers.

  • Net 15 or prepay terms until a buyer establishes a track record.

These thresholds protect your working capital and ensure you don’t gamble your entire supply chain on one unproven opportunity.

Do Not Accept Credit Cards for POs

It sounds convenient, but here’s the reality: accepting a PO via credit card exposes your business to chargebacks; even if the product was delivered and consumed. Once the money is pulled back, your only recourse is legal action, and that’s rarely worth the cost.

If a customer insists on using a card, treat it as a consumer order, not a wholesale PO. At scale, B2B payments should be handled through invoicing and ACH, ideally via a structured AP platform like Bill.com or QuickBooks.

Build Contract Language That Protects You

Your invoice or contract should always:

  • State payment terms clearly (Net 15, Net 30, etc.)

  • Outline late fees or interest on overdue balances

  • Include a clause that title does not transfer until payment is received (for newer buyers)

  • Reference return and refund policies

  • Specify how disputes are handled and where (jurisdiction)

If you're sending product without a formal vendor agreement, your invoice needs to function as your shield. Don’t leave terms blank or assume good faith will carry you.

Use Examples Like Wonder Monday to Stay Grounded

In 2025, Candace Wu, co-founder of Wonder Monday, went public on LinkedIn about a $15,000 unpaid invoice from Sunbasket and Gobble. Despite delivering product on time and with quality, the company received months of silence and empty promises—even though the cheesecakes were still live on both platforms.

This wasn’t a flaky startup. It was a venture-backed buyer with a known brand. And still, they ghosted a small supplier.

It’s a reminder: even “legit” buyers can be risky. Public callouts shouldn't be your first line of defense; your contracts, thresholds, and payment enforcement should be.

Growth shouldn’t come at the cost of financial stability. Big purchase orders can unlock opportunity, but they also create new risks. Define your PO policy now, before you need it.