Key takeaways
- Beer must be paid for on or before delivery under Texas's cash law. There's no credit at all.
- Liquor bought on the 1st–15th is due by the 25th; liquor bought on the 16th–end of month is due by the 10th of the next month.
- Late liquor payments are reported to TABC, and every wholesaler must stop selling to you until you're cleared.
- TABC permits can't be transferred. If you buy a store, you apply for a new permit, and your closing depends on it.
At a glance
- Regulator
- Texas Alcoholic Beverage Commission (TABC)
- Main license
- Package Store Permit (P) for spirits
- Quota on licenses?
- No statewide quota; local wet/dry elections apply
- Beer payment
- Cash on or before delivery
- Liquor payment
- Twice a month (25th and 10th)
- Permit transferable?
- No. A new owner applies for its own permit
Summary of state rules as of the date above. See sources below.
Texas has more independent package stores than most states, and a regulatory setup unlike anyone else's. Publicly traded corporations can't hold package store permits, one owner can hold an interest in no more than 250 package store permits, and package stores can't sell on Sundays. Those rules keep the market full of independent operators, and those operators carry a specific set of cash-flow pressures.
How liquor store licensing works in Texas
To sell spirits for off-premises consumption, you need a Package Store Permit (P) from the Texas Alcoholic Beverage Commission. Stores selling only beer and wine for off-premises consumption use a different permit, such as the Wine and Malt Beverage Retailer's Off-Premise Permit (BQ). Texas has no statewide cap on the number of package store permits. Instead, the question is whether your location is wet: local option elections decide whether liquor sales are legal in each city, county, or justice precinct, and many areas of Texas still limit or prohibit package stores.
Other Texas rules that affect owners and buyers:
- Package stores may not sell alcohol on Sundays, and are also closed on Thanksgiving, Christmas Day, and New Year's Day. Monday–Saturday hours are 10 a.m. to 9 p.m.
- A person may hold an interest in no more than 250 package store permits, and can be issued no more than 15 new package store permits in a calendar year
- Publicly traded corporations may not hold package store permits, a rule found in no other state
Texas distributor payment rules: the cash and credit law
Texas regulates exactly how and when retailers pay their suppliers, and TABC enforces it through its Cash and Credit Law system.
| Product | When you must pay | Source |
|---|---|---|
| Beer (malt beverages) | In full, on or before delivery. A check or draft payable on demand counts as cash | Tex. Alco. Bev. Code §102.31 |
| Liquor bought on the 1st–15th | By the 25th of the same month | Tex. Alco. Bev. Code §102.32 |
| Liquor bought on the 16th–end of month | By the 10th of the following month | Tex. Alco. Bev. Code §102.32 |
If you miss a liquor payment, the wholesaler must report you to TABC, and no wholesaler may sell you liquor until the account is paid and cleared. A bounced beer check is itself a cash-law violation, and distributors must report insufficient payments to TABC within two business days.
What this means for your cash flow
A Texas store effectively prepays every beer delivery, and turns around its liquor bills within roughly 10–25 days. Because you're closed Sundays, you have six selling days a week to cover those bills. A beer-heavy store in summer, or any store building inventory in November, needs more cash on hand than its profits suggest.
What Texas rules mean for financing
Working capital and inventory
Since the cash law leaves no room to stretch beer bills, and a single late liquor payment can cut you off from every wholesaler, a revolving line of credit or a working capital loan is often the safety net that keeps a Texas store off the delinquent list. Time holiday purchases so the bills fall on the 25th and 10th dates you can actually cover.
Buying a store in Texas
Because TABC permits can't be sold or transferred, buying a Texas package store means applying for your own new permit at that location. Lenders typically fund the acquisition only once your permit is issued or clearly on track. Build the TABC application timeline into your purchase contract and talk to TABC before any ownership change. See acquisition loans.
Location risk
Because legality depends on local wet/dry status, lenders financing a new store or a relocation will want confirmation that liquor sales are legal at the exact address.
Financing options for your store
| If you need to… | Look at |
|---|---|
| Cover distributor bills, payroll, or a slow month | Working capital loans |
| Stock up ahead of the holidays | Inventory financing or a line of credit |
| Replace a walk-in, compressor, or POS | Equipment financing |
| Get off daily cash-advance debits | Refinancing |
| Buy an existing store | Acquisition loans (usually SBA 7(a)) |
Frequently asked questions
Can a Texas liquor store get credit from its beer distributor?
When are liquor bills due in Texas?
Can I transfer a TABC package store permit when I buy a store?
Are liquor stores open on Sunday in Texas?
Sources
We cite primary sources: federal agencies, regulations, and official program rules. Rules vary by state and change over time.
General education, not legal, tax, or financial advice. Loan programs, state alcohol laws, and lender requirements change and vary by state. Disclosures.