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Payment Terms

Sankofa Collective Vendor Payment Policy

OUR COMMITMENT: UPFRONT PAYMENT

Unlike traditional wholesale retailers that operate on Net 60 or Net 90 payment terms, Sankofa Collective pays vendors within 30 days to support cash flow for Black-owned small businesses. We do not use consignment models, impose chargebacks, or delay payments for arbitrary reasons.

Our promise: Payment within 30 days of shipment confirmation.

SECTION 1: PAYMENT SCHEDULE

1.1 Standard Payment Terms: Payment on Shipment

When payment is processed:

  • Vendor ships products and provides tracking number + proof of shipment (carrier receipt, tracking link, or shipping confirmation email)
  • Sankofa Collective receives notification of shipment
  • Payment is processed within 30 days of shipment confirmation
  • Funds are typically available in vendor's account within 3-5 business days depending on bank processing

What we need from you:

  • Valid tracking number from recognized carrier (USPS, UPS, FedEx)
  • Proof of shipment documentation
  • Accurate invoice matching purchase order
  • All items shipped as ordered with appropriate packaging to protect against damages while in transit

SECTION 2: PAYMENT METHODS

Accepted Payment Methods:

2.1 ACH Bank Transfer (Preferred)

  • Most secure method
  • No transaction fees for vendors
  • Requires: Bank name, routing number, account number, account holder name
  • Processing time: 1-3 business days after payment is issued

2.2 Wire Transfer

  • Fastest
  • Available for orders over $2,000 or if ACH unavailable
  • May incur bank fees (typically $15-45)
  • Same-day or next-day processing

2.3 PayPal Business

  • Available upon request
  • PayPal processing fees may apply (typically 2.9% + $0.30 per transaction)
  • Vendor responsible for PayPal fees
  • Faster access to funds (often same-day)

Payment Information: Vendors must provide complete payment information during onboarding and notify Sankofa immediately of any changes to banking details.

SECTION 3: INVOICING REQUIREMENTS

To ensure prompt payment, all invoices must include:

Required Information:

  • Vendor business name and address
  • Sankofa Collective billing address
  • Invoice number (unique identifier created by vendor)
  • Invoice date
  • Purchase order (PO) number (unique identifier created by Sankofa)
  • Itemized list of products with:
    • Product name/SKU
    • Quantity shipped
    • Unit price (wholesale)
    • Line total (quantity × unit price for each product)
  • Subtotal (sum of all line totals)
  • Any applicable taxes (should be $0 with resale certificate)
  • Total amount due
  • Payment terms: "Payment on Shipment - Due within 30 days of shipment confirmation"
  • Vendor contact information (point-of-contact name, email, and phone number)

Invoice Submission:

SECTION 4: WHOLESALE PRICING & DISCOUNTS

4.1 Wholesale Discount Structure

Wholesale discounts are established during the partnership agreement process and remain fixed for the annual contract period unless otherwise negotiated.

Typical Discount Ranges:

  • 30-40%: Standard wholesale discount
  • 41-50%: Preferred wholesale discount for high-volume or exclusive partnerships
  • 51-60%: Volume discount for bulk orders or annual commitments

Price Calculations:

  • Wholesale Price = Retail Price × (1 - Discount %)
  • Example: $40 retail product at 40% discount = $24 wholesale price
  • Sankofa pays the wholesale price; discount is applied at invoice

4.2 Price Changes

  • Vendors may adjust retail prices with 60 days advance written notice (this initiates a new contract)
  • Wholesale discount percentage remains constant per contract
  • Sankofa reserves right to discontinue products if price changes significantly affect margin

SECTION 5: TAX HANDLING

5.1 Sales Tax & Resale Certificate

Resale Exemption:

  • Sankofa Collective is a registered reseller in Washington, DC
  • We will provide a valid resale certificate for sales tax exemption
  • Vendors should NOT collect sales tax on wholesale orders to Sankofa
  • Sankofa collects and remits sales tax on end-customer sales

What is a Resale Certificate: A resale certificate proves Sankofa is purchasing products to resell them, exempting the transaction from sales tax. This prevents double taxation (vendor charging Sankofa tax + Sankofa charging customer tax).

Process:

  • Sankofa provides copy of DC resale certificate during vendor onboarding
  • Vendors keep certificate on file for their records
  • Invoices to Sankofa should show $0 sales tax

5.2 Income Tax Reporting

1099-NEC Forms:

  • Sankofa will issue IRS Form 1099-NEC for all vendors paid $600 or more in a calendar year
  • Vendors must provide completed W-9 form during onboarding (NOT 1099 - vendors submit W-9; Sankofa issues 1099)
  • 1099-NEC forms distributed by January 31st of following year
  • Forms filed electronically with IRS on vendor's behalf

Vendor Responsibility:

  • Ensure W-9 information is accurate (legal name, Tax ID/SSN, address)
  • Notify Sankofa of any changes to tax information
  • Report 1099 income on annual tax returns

SECTION 6: DAMAGED, DEFECTIVE, OR INCORRECT SHIPMENTS

6.1 Inspection & Reporting

  • Sankofa inspects all shipments within 48 hours of receipt
  • Vendors notified immediately of any issues via email and/or phone
  • Photos/documentation provided for all claims via Product Issue Claim Form (see separate document)

6.2 Resolution Process

For Damaged Products (Option A - Strict Protection):

  • Sankofa inspects all shipments within 48 hours of receipt
  • Photos/documentation of damage sent to vendor immediately via Product Issue Claim Form
  • Payment for damaged items HELD until resolution:
    • If shipping damage (carrier fault): Vendor provides packaging documentation showing adequate protection; Sankofa files carrier claim; payment released when claim approved
    • If packaging inadequacy (vendor fault): Vendor provides replacement at no cost OR accepts deduction for damaged items from payment
  • Payment for undamaged items in shipment processed normally (within 30 days)
  • Vendor requirements:
    • Must use appropriate packaging materials (bubble wrap, packing peanuts, box-in-box for fragile items)
    • Must require signature on delivery for shipments over $500
    • Must purchase shipping insurance for shipments over $500
    • Must provide proof of insurance and packaging standards upon request

For Defective Products (manufacturing defects):

  • Vendor provides replacement products at no cost, OR
  • Vendor issues credit for defective items applied to next order
  • Payment for defective items withheld until replacement shipped

For Incorrect Shipments (wrong items, wrong quantities):

  • Vendor provides correct items at no additional cost
  • Vendor arranges return shipping for incorrect items (vendor pays return shipping)
  • Payment adjusted to reflect actual items received
  • Vendor has option to: (a) have incorrect items returned, or (b) allow Sankofa to keep at discounted rate

6.3 Timeline

  • Issues reported within 48 hours of receipt via Product Issue Claim Form
  • Vendor has 5 business days to respond with resolution plan
  • Replacement products shipped within 10 business days
  • If vendor fails to respond or resolve, Sankofa may source replacement from another vendor and deduct cost from payment

SECTION 7: LATE PAYMENT POLICY

While Sankofa Collective commits to prompt payment, unforeseen circumstances may occasionally delay processing.

If payment is delayed beyond 30 days:

  • Vendor will be notified immediately with explanation and new payment date
  • No interest or late fees assessed for delays under 15 business days
  • For delays beyond 15 business days: 1.5% monthly interest (18% APR) applied to outstanding balance
  • Vendor may suspend future shipments until payment is received

Vendor Notification:

  • Accounting team notifies vendor within 24 hours of any delay
  • Updated payment timeline provided
  • Direct contact person assigned to resolve issue

SECTION 8: PAYMENT DISPUTES

If vendor disputes payment amount:

  1. Contact accounting@sankofacollective.net within 10 business days
  2. Provide documentation: invoice, purchase order, shipping confirmation
  3. Sankofa reviews dispute within 5 business days
  4. Resolution provided in writing
  5. Corrected payment issued within 48 hours of resolution

Common Dispute Reasons:

  • Incorrect wholesale discount applied
  • Missing items not credited
  • Math errors on invoice or line totals
  • Bank transfer issues or incorrect account information
  • Damaged items payment held (see Section 6)

Resolution Commitment: All payment disputes resolved within 10 business days or escalated to senior management.

SECTION 9: ANNUAL RECONCILIATION

9.1 End-of-Year Review

What Sankofa Provides:

  • Annual statement of all payments made to vendor during calendar year (January 1 - December 31)
  • Statement includes: invoice numbers, payment dates, payment amounts, payment methods, total annual payments
  • Distributed by January 31st of following year (accompanies 1099-NEC form)

Purpose:

  • Helps vendors reconcile their books
  • Supports vendor's tax filing
  • Confirms accuracy of 1099-NEC reporting
  • Provides documentation for vendor's accountant

Vendor Responsibility:

Discrepancy Resolution:

  • Sankofa investigates within 10 business days
  • Corrected statement issued if errors found
  • Amended 1099 filed if necessary

SECTION 10: PAYMENT SUSPENSION OR TERMINATION

10.1 Grounds for Payment Suspension

Sankofa may suspend or withhold payment if:

  • Vendor breaches partnership agreement (see Master Vendor Terms)
  • Products fail to meet quality standards upon inspection
  • Vendor misrepresents ingredients, ownership, or certifications
  • Products received do not match invoice (quantity or items)
  • Vendor fails repeated quality inspections
  • Legal or regulatory issues arise (FDA warning, recall, safety concern)
  • Vendor fails to maintain required insurance
  • Vendor ships prohibited ingredients after approval

10.2 Suspension Process

  • Written notice provided within 48 business hours with specific reason
  • Payment placed on hold pending investigation
  • Opportunity to cure breach provided (timeframe specified in notice, typically 10-14 days)
  • If breach cured: Payment released within 48 hours
  • If breach not cured: Partnership may be terminated per Section 11

10.3 Permanent Termination

  • For serious violations (safety issues, fraud, intentional misrepresentation): immediate termination, no cure period
  • Payment for goods already received and accepted: processed per normal schedule
  • Payment for damaged/defective goods: withheld permanently or offset against replacement costs
  • Final reconciliation provided within 30 days of termination

SECTION 11: TERMINATION OF PARTNERSHIP

Standard Termination Process: See full Termination Policy at sankofacollective.net/termination-policy

Payment During Termination:

  • 30-day notice required for voluntary termination (either party)
  • Orders placed before termination notice: fulfilled and paid per normal terms
  • Orders placed after termination notice: subject to mutual agreement
  • Final payment processed within 30 days of final shipment receipt
  • Final reconciliation statement provided

Immediate Termination:

  • For material breach: payment suspended immediately (see Section 10)
  • Final settlement negotiated based on circumstances

SECTION 12: ADDITIONAL LEGAL TERMS

12.1 Force Majeure

Neither party shall be liable for failure to perform obligations due to events beyond reasonable control, including but not limited to:

  • Natural disasters (hurricanes, earthquakes, floods, fires)
  • Pandemics or public health emergencies
  • War, terrorism, civil unrest
  • Government actions (embargoes, import/export restrictions)
  • Utility failures or internet/telecommunications outages
  • Labor strikes or disputes (not involving either party's employees)

Process:

  • Affected party must notify other party within 5 business days
  • Provide documentation of force majeure event
  • Obligations suspended during event (no penalties for non-performance)
  • Both parties work in good faith to minimize impact
  • If event lasts >60 days, either party may terminate without penalty

Payment Impact:

  • Payment obligations suspended for undelivered goods during force majeure
  • Goods delivered before event: payment proceeds normally
  • No late fees or penalties assessed during force majeure period

12.2 Bankruptcy Provisions

If Vendor Files Bankruptcy:

  • Sankofa may terminate partnership immediately
  • Payment for goods received pre-bankruptcy: paid to bankruptcy trustee per court order
  • No new orders placed during bankruptcy proceedings
  • Sankofa may file claim as creditor if payments outstanding

If Sankofa Files Bankruptcy:

  • Vendor may terminate partnership immediately
  • Outstanding payments become claim in bankruptcy proceedings
  • Vendor works with bankruptcy trustee for payment resolution
  • Vendor may reclaim shipped goods if payment not yet processed (per UCC Article 2)

12.3 Assignment Restrictions

Payment Rights:

  • Vendors may NOT assign payment rights to third parties without Sankofa's written consent
  • Exceptions: Assignment to vendor's lender as collateral (with notice to Sankofa)
  • Sankofa pays vendor directly unless written assignment notice provided
  • Vendor remains responsible for all obligations even if payment assigned

Partnership Agreement:

  • Neither party may assign this agreement without other party's written consent
  • Exception: Assignment to successor entity in merger/acquisition (with 30 days notice)

12.4 Integration & Amendment

Complete Agreement:

  • This Payment Terms Policy works in conjunction with:
    • Vendor Partnership Application & Agreement
    • Marketing Rights Policy (sankofacollective.net/marketing-rights)
    • All other policies referenced in partnership agreement

Amendments:

  • Sankofa may update this policy with 30 days written notice to all vendors
  • Material changes (payment timing, discount structures): require mutual written agreement
  • Non-material changes (contact information, process clarifications): effective upon notice
  • Continued partnership after notice period constitutes acceptance of changes

Conflicts:

  • If conflict between this policy and main partnership agreement: partnership agreement controls
  • If conflict between verbal and written terms: written terms control
  • If ambiguity: interpreted in favor of fair dealing and commercial reasonableness

12.5 Severability

If any provision of this policy is found invalid, illegal, or unenforceable:

  • That provision is modified to minimum extent necessary to make it enforceable
  • If modification not possible: provision is severed
  • All other provisions remain in full force and effect
  • Parties negotiate in good faith to replace severed provision with valid equivalent

12.6 Governing Law & Jurisdiction

Governing Law:

  • This policy governed by laws of District of Columbia
  • Excluding conflict of law provisions
  • Federal law applies where specified (tax reporting, bankruptcy, etc.)

Jurisdiction:

  • Disputes resolved per Dispute Resolution Policy (sankofacollective.net/dispute-resolution)
  • Litigation venue: District of Columbia Superior Court or U.S. District Court for D.C.
  • Both parties consent to personal jurisdiction in D.C.

12.7 Waiver

No Waiver by Inaction:

  • Failure to enforce any provision does NOT waive right to enforce later
  • Waiver of one breach does NOT waive future breaches
  • All waivers must be in writing and signed by authorized representative

Example: If Sankofa pays late once without vendor charging interest, vendor retains right to charge interest on future late payments.

SECTION 13: QUESTIONS OR CONCERNS

13.1 Contact Information

Payment & Invoicing Questions:

General Partnership Questions:

Payment Status Inquiries:

  • Check payment status anytime by emailing accounting@sankofacollective.net with invoice number and PO number
  • Response within 48 business hours
  • Include: Vendor name, Invoice #, PO #, Shipment date

13.2 Emergency Contact

For urgent payment issues (e.g., incorrect account charged, duplicate payment):

Last Updated: January 2026

Effective Date: Upon execution of Brand Partnership Agreement