Specialty chemical and materials companies face a unique cash flow paradox: they operate in an industry with significant cash tied up in working capital — EY estimates about US$176B industry-wide in chemicals while managing volatile raw material costs that comprise over 50% of their cost of goods sold. With payment delays still common in B2B trade and EY reporting a median 60-day DSO in the global chemicals industry (44 days best-in-class), chemical distributors and manufacturers struggle to offer competitive net terms without jeopardizing their own liquidity. Modern Buy Now, Pay Later (BNPL) solutions specifically designed for B2B chemical transactions are transforming this landscape by providing non-recourse financing, automated credit decisioning, and integrated accounts receivable automation. Companies implementing these solutions can unlock substantial working capital while enhancing buyer relationships and driving sales growth.
Buy Now, Pay Later in the B2B chemical context represents a sophisticated evolution beyond consumer BNPL models. Rather than simple installment payments, B2B BNPL for specialty chemicals involves structured net payment terms (Net 30, 60, or 90 days) with immediate seller payment through non-recourse financing. This model directly addresses the industry's fundamental challenge: buyers need extended terms to manage their own cash flow cycles, while sellers cannot afford to wait 60-90 days for payment on high-value chemical shipments.
The specialty chemical industry operates with unique characteristics that make purpose-built financing solutions valuable:
Resolve's B2B Net Terms platform specifically addresses these challenges by combining embedded credit expertise, invoice financing, and payment processing in a single solution. Unlike consumer BNPL that focuses on individual purchases, B2B chemical BNPL manages ongoing credit relationships with dedicated buyer credit lines that grow with purchase history and payment performance.
For chemical buyers, Resolve for Buyers provides the working capital flexibility to purchase materials when needed without immediate cash outlay. This is particularly valuable for specialty chemical formulators who must respond quickly to customer demands but face their own extended receivables cycles from end customers.
The chemical procurement process has traditionally been hampered by lengthy credit approval cycles that can take weeks for new suppliers. This delay forces buyers to either maintain excessive inventory (tying up working capital) or risk production disruptions. Modern BNPL platforms eliminate this bottleneck through embedded credit decisioning that provides rapid approvals based on comprehensive business data analysis.
For chemical distributors offering Net 30/60/90 terms, the operational complexity can be substantial. Managing different payment terms across hundreds of customers requires dedicated AR teams for invoicing, collections, payment processing, and reconciliation. The Resolve B2B Payments Platform streamlines this entire workflow by:
This embedded approach transforms the buyer experience from a fragmented, manual process to a seamless digital workflow. Chemical buyers can now apply for credit at checkout, receive rapid decisions, and manage their entire payment relationship through a single portal—similar to consumer e-commerce experiences but scaled for complex B2B transactions.
The Integrations with Financial Tech Stack ensure that this streamlined experience extends across the entire procurement ecosystem. Whether buyers are purchasing through e-commerce platforms, field sales representatives, or traditional purchase orders, the BNPL functionality remains consistent, providing a unified experience regardless of transaction channel.
The financial impact of extended payment terms on chemical suppliers cannot be overstated. With an average DSO of 50 days and 44% of invoices paid late, suppliers face significant working capital pressure that constrains growth and operational flexibility.
Resolve's Accounts Receivable with AI-Powered Automation addresses these challenges through a comprehensive approach that combines immediate payment with risk mitigation. The platform advances up to 100% of invoice value within 24 hours while assuming the majority of credit risk through non-recourse financing. This model delivers several critical benefits:
The financial impact is quantifiable. Chemical companies can release substantial cash per $1 billion of revenue by reducing DSO from the industry average of 50 days to best-in-class performance. For a mid-sized chemical distributor with $100 million USD in annual revenue, this represents additional working capital—enough to fund significant growth initiatives or weather market volatility.
Net Terms Management further enhances this value by providing white-label customer experiences that maintain supplier brand relationships while offloading the operational burden of credit management, collections, and payment processing.
Credit assessment in the chemical industry presents unique challenges. Specialty chemical companies operate in what S&P Global rates as a "low risk" industry with "intermediate cyclicality," yet individual company performance can vary dramatically based on product mix, customer concentration, and raw material exposure. Comprehensive credit evaluation requires expertise that most small-to-midsize chemical companies may not have in-house.
Resolve's Business Credit Check leverages proprietary AI models and data sources to deliver enterprise-grade credit insights. The platform evaluates thousands of data points including:
This comprehensive assessment requires only the customer's business name and address, delivering results within one business day. For chemical suppliers, this eliminates the lengthy credit application process that can block new business opportunities. The system continuously monitors buyer creditworthiness, automatically adjusting credit lines based on payment performance and market conditions.
The B2B Net Terms & Credit Management solution builds on this foundation by providing dynamic credit limits that scale with buyer relationships. Rather than static credit limits that quickly become outdated, the platform uses real-time data to offer appropriate credit lines that support growth while managing risk. This approach is particularly valuable for chemical distributors working with fast-growing customers whose credit needs evolve rapidly.
The competitive advantage of offering flexible payment terms in the chemical industry is well-documented. Companies that can offer Net 60 or Net 90 terms can win more business and larger orders than competitors limited to Net 30 or cash-on-delivery terms. However, the capital requirements to support extended receivables have historically limited this capability to larger distributors with substantial balance sheets.
Resolve for Sellers enables immediate payment while offering buyers extended terms. This model enables smaller chemical companies to compete more effectively by:
The Net Terms for Ecommerce solution extends these benefits to digital commerce channels. Chemical suppliers with e-commerce platforms can embed BNPL functionality directly into their checkout flows, providing rapid credit approvals for purchases up to $25,000 USD. This digital-first approach meets the expectations of modern B2B buyers who demand streamlined purchasing experiences.
The impact on sales metrics can be significant. For chemical distributors operating on ~6% EBITDA (on net revenues) on average, with some specialty segments exceeding 10% even modest improvements in conversion rates, average order values, and customer lifetime values can translate to substantial bottom-line impact.
The adoption of new financial technology in the chemical industry benefits from seamless integration with existing systems. Chemical companies operate sophisticated ERP systems managing complex inventory, regulatory compliance, and customer relationship data. BNPL solutions that integrate smoothly avoid creating data silos, manual reconciliation requirements, and operational friction.
Resolve's Integrations with Financial Tech Stack addresses this through comprehensive connectivity with leading platforms including:
These integrations ensure that BNPL functionality becomes a seamless extension of existing workflows. Key integration benefits include:
The Accounts Receivable with AI-Powered Automation platform further enhances integration value by automatically recording and syncing all transactions to QuickBooks and other accounting systems. This ensures that financial statements accurately reflect BNPL activity without requiring manual journal entries or adjustments.
Chemical companies seeking to improve cash flow have multiple financing options available. Invoice factoring has been one traditional approach, typically involving fees in the range of 2-5% of invoice value. These arrangements vary in their terms and structure, with some requiring the seller to repurchase invoices if buyers don't pay, while others operate on a non-recourse basis.
Resolve's Better Than Factoring solution provides a non-recourse model with competitive pricing and no hidden fees. Key features include:
This approach transforms BNPL from a purely financial transaction into a strategic relationship enhancement tool. Chemical suppliers can offer professional credit and payment services that rival those of Fortune 500 companies without building expensive internal infrastructure. The platform essentially serves as an extension of the seller's team, delivering deeper credit insights through expertise from former Amazon, PayPal, and Fortune 500 professionals.
For chemical companies operating in cyclical markets, this non-recourse model provides important financial stability. Suppliers can continue offering competitive terms to maintain market share while protecting themselves from buyer payment challenges during economic fluctuations.
The digital transformation of B2B payments in the chemical industry is accelerating, driven by buyer expectations, competitive pressures, and the proven ROI of automation. Companies that adopt modern payment solutions position themselves to meet evolving market demands while competitors relying on manual processes may struggle to keep pace.
The future of chemical B2B payments lies in embedded, relational, and automated solutions that enhance supplier-buyer relationships. Key trends shaping this future include:
Companies that embrace these trends through comprehensive platforms position themselves for long-term competitive advantage. The combination of immediate payment, risk mitigation, operational efficiency, and enhanced buyer experience creates a virtuous cycle of growth, customer loyalty, and financial stability.
The chemical industry's substantial working capital opportunity won't be captured by companies clinging to manual processes and traditional approaches. Forward-thinking chemical suppliers and distributors are already implementing modern BNPL solutions that deliver measurable ROI while positioning their businesses for the digital B2B commerce era.
Resolve Pay delivers a comprehensive solution specifically designed for the unique needs of specialty chemical and materials companies. By combining non-recourse financing, automated credit decisioning, integrated AR automation, and seamless ERP connectivity, Resolve addresses the full spectrum of cash flow, risk management, and operational challenges facing the chemical industry.
The platform enables chemical suppliers to:
For chemical buyers, Resolve provides:
The combination of immediate seller payment, enhanced buyer flexibility, and comprehensive automation creates a win-win scenario that drives sales growth while optimizing working capital. Chemical companies implementing Resolve's BNPL platform gain a competitive advantage through superior payment experiences that strengthen customer relationships and support long-term business growth.
With deep expertise from professionals who've built payment systems at Amazon, PayPal, and Fortune 500 companies, Resolve brings enterprise-grade capabilities to chemical companies of all sizes. The platform's AI-powered credit decisioning, automated collections workflows, and comprehensive risk management deliver the sophistication that the chemical industry requires in a modern B2B payment solution.
Modern BNPL platforms like Resolve are designed to handle complex B2B invoicing structures through flexible integration APIs that sync directly with your existing ERP and e-commerce systems. The platform accepts invoices with volume breaks, tiered pricing, negotiated contracts, and technical specifications without requiring manual re-entry or simplification. Payment allocation automatically matches remittances to the correct line items, even for partial payments or complex discount structures.
Non-recourse protection typically covers credit risk (buyer inability or unwillingness to pay) but not legitimate commercial disputes related to product quality, specifications, or delivery issues. However, Resolve's platform includes dispute management workflows that help resolve commercial issues efficiently while protecting seller relationships. The collaborative AR portal allows buyers and sellers to communicate directly about disputes, upload supporting documentation, and track resolution progress—all within the branded payment experience.
Yes, sophisticated BNPL platforms support complex B2B account hierarchies including parent-child relationships, multi-location billing, and consolidated invoicing. The credit decisioning process can evaluate the parent company's financial strength while managing individual location purchasing limits and payment responsibilities. This maintains the operational efficiency of consolidated accounts while providing appropriate credit risk management for each purchasing location.
Properly integrated BNPL solutions actually streamline month-end closing by providing real-time transaction synchronization with accounting systems like QuickBooks, NetSuite, and Oracle. All BNPL transactions—including advances, fees, and customer payments—are automatically recorded with appropriate GL coding, eliminating manual journal entries and reconciliation work. The platform provides detailed reporting on BNPL performance metrics alongside traditional sales data, giving finance teams complete visibility into the impact on cash flow, DSO, and profitability.
Leading BNPL platforms integrate with existing compliance workflows rather than replacing them. The payment platform focuses on financial transactions while your existing systems maintain regulatory documentation, safety certifications, and hazardous materials handling requirements. The integration ensures that payment processing doesn't bypass compliance checks—orders cannot proceed to payment approval without proper regulatory documentation being in place in your core systems.
This post is to be used for informational purposes only and does not constitute formal legal, business, or tax advice. Each person should consult his or her own attorney, business advisor, or tax advisor with respect to matters referenced in this post. Resolve assumes no liability for actions taken in reliance upon the information contained herein.