Manufacturing companies face a critical cash flow paradox: despite healthy order volumes and revenue growth, industrial sector cash flow declined by 29% while manufacturing output decreased 0.3% in August 2024—creating a working capital trap that stifles production cycles and growth opportunities. Buy Now Pay Later (BNPL) solutions like Resolve's B2B Net Terms transform this challenge by enabling manufacturers to offer flexible payment terms to buyers while receiving immediate upfront payment, effectively decoupling customer payment flexibility from operational cash flow constraints.
Manufacturers operate in a uniquely challenging financial environment where production cycles, inventory investments, and customer payment terms create inherent cash flow gaps. Industrial buyers—often small contractors, fabricators, and distributors—demand Net 30, 60, or even 90-day terms to manage their own working capital, yet manufacturers must fund raw material purchases, labor costs, and production expenses upfront. This timing mismatch creates a working capital trap where profitable companies struggle with liquidity.
The problem has intensified in recent years. While manufacturing output decreased 0.3% in August 2024, industrial sector cash flow declined 29%. This disconnect between operational activity and financial liquidity forces manufacturers to make difficult choices: limit order acceptance, maintain excessive cash reserves, or seek external financing.Manufacturers have traditionally relied on various financing methods to bridge cash flow gaps. Factoring converts receivables to immediate cash but involves notification requirements that may affect customer relationships. Bank lines of credit provide flexible funding but require personal guarantees and covenant compliance. Traditional trade credit places full credit assessment and collection responsibilities on the manufacturer. Customer deposits can help but may reduce conversion rates in competitive markets.
B2B BNPL addresses these challenges by providing a modern alternative that combines instant liquidity, automated risk management, and enhanced buyer experience.
B2B Buy Now Pay Later for manufacturers works through a streamlined process that simplifies trade credit while providing immediate working capital. When a buyer selects Net 30/60/90 terms at checkout or on an invoice, the BNPL provider runs real-time credit checks using AI-powered underwriting, approves qualified transactions in seconds, advances payment to the manufacturer (typically 50-100% of invoice value), and manages all subsequent collections and payment processing.
This process delivers three critical benefits:
Working Capital Acceleration: Instead of waiting 30-90 days for customer payments, manufacturers receive funds within 24 hours, enabling immediate reinvestment in production, inventory, and growth initiatives.
Risk Elimination: Non-recourse financing means the BNPL provider assumes default risk—manufacturers keep all advances regardless of buyer payment performance.
Operational Efficiency: Automated credit, invoicing, and collections eliminate manual AR processes, freeing finance teams to focus on strategic activities.
Manufacturing production cycles demand predictable, immediate access to working capital. B2B BNPL transforms cash flow management by converting future receivables into immediate liquidity.
Resolve's B2B Payments Platform enables manufacturers to receive up to 90% upfront on approved invoices, with non-recourse protection ensuring all advances are permanently yours to keep. This immediate liquidity solves critical manufacturing challenges:
The impact on cash conversion cycles is substantial. Manufacturers typically experience:
Reduce Days Sales Outstanding (DSO) by converting approved invoices into near-immediate cash instead of waiting for net termsResolve's Business Credit Check eliminates these inefficiencies through AI-powered underwriting that delivers instant, data-rich credit decisions. The platform combines traditional credit bureau data with behavioral signals and proprietary financial databases to generate comprehensive risk assessments in seconds.
Key advantages of modern credit decisioning include:
Risk management extends beyond initial approval. Continuous monitoring adjusts credit limits based on payment performance, while automated collections workflows reduce delinquency rates through timely, professional payment reminders.
Manufacturing finance teams spend considerable time on manual AR processes: creating invoices, sending payment reminders, reconciling payments, and managing collections. Resolve's Accounts Receivable Automation eliminates this overhead through AI-powered workflows that handle the entire receivables lifecycle.
The platform automates critical AR functions:
Manufacturers implementing AR automation with solutions like VersaPay for manufacturing report:
Around 50% reduction in AR management timeThe automation extends to bookkeeping through automatic QuickBooks integration, where all transactions sync in real-time with original invoice references, eliminating manual data entry and reconciliation errors.
Manufacturers operate complex technology ecosystems including ERP systems, accounting software, ecommerce platforms, and custom applications. Effective BNPL solutions must integrate seamlessly with existing infrastructure without disrupting established workflows.
Resolve's Integration Platform offers comprehensive connectivity across manufacturing tech stacks:
ERP Systems:
Ecommerce Platforms:
The integration process typically takes 2-4 weeks and includes:
Resolve for Buyers enables manufacturing customers to purchase what their business needs now and pay later with 0% interest for 30-60 days. This flexibility drives measurable sales improvements:
The buyer experience is designed for B2B complexity:
Resolve's Better Than Factoring approach provides non-recourse financing with several distinctive advantages:
Archipelago, which tripled its revenue, eliminated manual credit reference checks that previously consumed 5+ hours weekly. The automated approval process enabled them to serve smaller customers who couldn't meet traditional credit requirements, dramatically expanding their market reach.
Concrete supplier Elston Materials projects significant sales growth by offering Net 30 terms to contractors who previously couldn't afford large material orders. Resolve's instant credit decisions and upfront payment enabled them to compete effectively against larger suppliers while maintaining healthy cash flow.
SDI Fire unlocked working capital and increased profit margins by 25% after partnering with Resolve. The immediate payment and eliminated bad debt risk enabled them to reduce pricing pressure and improve overall profitability.
These case studies demonstrate consistent themes: accelerated cash flow, risk elimination, operational efficiency, and sales growth through enhanced buyer accessibility.
Successful BNPL implementation requires strategic planning and execution. Key best practices include:
B2B Buy Now Pay Later represents a fundamental shift in how manufacturers manage working capital, credit risk, and customer relationships. By providing immediate cash flow while offering buyers flexible payment terms, Resolve's platform solves the core financial challenge that has constrained manufacturing growth for decades.
The benefits extend beyond simple financing. Manufacturers gain:
Resolve's comprehensive B2B payment platform integrates seamlessly with your existing technology stack, maintains your brand integrity throughout the buyer experience, and provides professional credit expertise without requiring internal resources. Whether you're a small fabricator or an enterprise manufacturer, Resolve's solutions scale to meet your specific needs while maintaining the same high-quality service and support.
The manufacturing cash flow crisis demands modern solutions. Traditional financing methods were designed for a different era—today's manufacturers need technology-driven platforms that match the speed and complexity of modern B2B commerce. Resolve delivers that solution.
Resolve's BNPL is particularly valuable for manufacturers with large-ticket items or extended production timelines because it provides immediate working capital to fund production while buyers get flexible payment terms. For equipment orders ranging from $50,000 to $500,000 USD, manufacturers can receive up to 90% upfront payment within 24 hours, enabling them to purchase raw materials, schedule production, and fulfill orders without waiting for customer payments that might be 60-90 days away.
No, Resolve provides non-recourse financing, which means manufacturers keep all advance payments permanently regardless of buyer payment performance. Resolve assumes full responsibility for credit risk, collections, and any potential defaults. This eliminates bad debt write-offs and provides predictable, risk-free cash flow for manufacturers.
Most manufacturers can complete implementation within 2-4 weeks. The process requires minimal technical resources for standard integrations—QuickBooks Online users can connect via one-click OAuth in under 15 minutes, while NetSuite or SAP integrations may require 3-5 days of IT support for API configuration. Resolve's technical team provides comprehensive support throughout the implementation process.
Yes, Resolve's platform supports complex billing workflows including progress payments, milestone billing, and partial shipments. Manufacturers can create multi-stage invoices within their existing ERP systems, and Resolve will advance payment on approved amounts while managing the complete payment lifecycle. This flexibility is particularly valuable for custom fabrication, contract manufacturing, and large equipment projects with phased delivery schedules.
Resolve's credit decisioning goes significantly beyond traditional business credit bureaus by combining conventional credit data with behavioral signals, payment history patterns, and proprietary financial databases. Their team of experts, formerly from Amazon, PayPal, and Fortune 500 companies, delivers deeper insights than traditional bureaus. This results in higher approval rates for qualified manufacturing buyers who might be declined by traditional credit scoring models that rely solely on limited bureau data.
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.