Net 30/60/90 Terms – Guide for B2B E-Commerce Stores (Manufacturing & Distribution)

Updated on October 21, 2025

Net payment terms have become essential competitive tools for B2B e-commerce businesses in manufacturing and distribution, with many companies using Net 30, Net 45, and Net 60 as their standard payment terms. Yet despite their prevalence, a significant share of businesses face delayed payments. 

For manufacturing and distribution businesses operating on thin margins, this cash flow gap can be the difference between growth and survival. Resolve's B2B Net Terms platform helps merchants grow B2B sales, get paid faster, and reduce risk by streamlining net terms, accounts receivable, and payments processes.

Key Takeaways

• Net 30/60/90 terms represent the number of days customers have to pay invoices, functioning as trade credit that helps buyers manage cash flow while creating sales opportunities for sellers
• Manufacturing and distribution sectors show significant variation in payment terms, with Net 30, Net 45, and Net 60 being common standard practices
• A significant share of invoices are paid late in the United States
• Offering net terms increases sales and builds customer loyalty but creates cash flow challenges that require systematic management
• Early payment discounts (such as 2/10 Net 30) can incentivize faster payment, with suppliers often observing improved customer retention when offering such options
• Payment fraud affects a significant percentage of organizations, requiring robust verification processes especially for check payments which remain among the most vulnerable methods
• Resolve's integrated platform advances up to 90% of invoice value within 24 hours, allowing businesses to offer net terms without sacrificing cash flow

What Are Net 30, Net 60, and Net 90 Payment Terms?

Net payment terms are deferred payment agreements that specify the number of days a customer has to remit payment after receiving an invoice. Net 30, net 60, and net 90 are the most common variations, indicating payment is due within 30, 60, or 90 days respectively from the invoice date. These terms act as a grace period before the payment deadline and serve as a form of trade credit extended by sellers to buyers.

In essence, net terms represent an arrangement between business parties that permits the exchange of goods and services without immediate monetary transactions, effectively providing short-term financing to business customers. The specific number indicates the payment deadline from invoice receipt—Net 30 means an invoice must be paid within 30 calendar days of the invoice date, Net 60 allows 60 days, and Net 90 extends to 90 days.

Net 15 vs. Net 30 vs. Net 60 vs. Net 90: Key Differences

Payment terms vary significantly across industries based on operational needs, cash flow cycles, and established industry norms. Common variations include:

• Net 15: Typically used for new customers or higher-risk relationships, providing a shorter credit window to test payment reliability
• Net 30: The most common standard across B2B commerce, balancing customer flexibility with reasonable cash conversion expectations
• Net 60: Common in manufacturing and service sectors where longer production or delivery cycles justify extended payment terms
• Net 90: Often seen in construction and heavy equipment industries where project completion and acceptance may take months

Industry-specific variations are substantial, with some sectors preferring shorter terms and others requiring extended periods based on operational cycles and industry norms.

How Net Terms Work in B2B Transactions

Net terms function as trade credit where the length of financing agreements typically depends on the relationship with the business offering payment terms and the buyer's ability to negotiate. Some businesses enhance these terms with early payment discount incentives, commonly expressed as "X/Y Net Z" where X represents the percentage discount, Y indicates the maximum time period to receive the discount, and Z shows the general credit terms.

For example, "5% 10 net 30" means the client receives a 5% discount if paying within 10 days, otherwise the full amount is due within 30 days. This structure provides flexibility while incentivizing faster payment when cash flow allows.

Why B2B E-Commerce Stores Use Net Payment Terms

Offering net terms generates increased sales by removing immediate payment barriers and attracting customers who lack upfront capital but have reliable cash flow cycles. Small and medium-sized businesses are generally more willing to buy on credit than pay cash immediately, with some customers depending on credit for all their purchases. Businesses that offer net terms can drive more sales than those that do not because they can sell to clients experiencing temporary cash flow constraints.

This is particularly critical in manufacturing and distribution where buyers often need to align their purchasing with their own revenue cycles. A distributor purchasing inventory for seasonal demand may not have the cash flow to pay immediately but can reliably pay within 30-60 days once their customers purchase the goods.

Increased Order Size and Frequency

When businesses make their clients' financial lives more manageable, customers are more likely to continue doing business with them and recommend the business to other potential customers. Net terms are particularly helpful to B2B companies trying to manage and smooth their own cash flow, creating mutual benefit.

Many buyers specifically seek vendors offering flexible payment terms, making this a key differentiator when prospects compare service providers. Companies that offer payment terms report attracting new clients and potentially increasing sales by making services more accessible to businesses managing tight cash flows.

Stronger Buyer Relationships in Manufacturing and Distribution

Extending credit demonstrates confidence in the business relationship and fosters longer-term business connections. For subscription-based and repeat-purchase models common in manufacturing and distribution, this goodwill often translates into improved customer retention rates.

Resolve integrates payments, credit, and liquidity into a single infrastructure while advancing up to 90% of invoice value within 24 hours, allowing sellers to offer net terms without delaying cash flow. This means businesses can build stronger relationships while maintaining healthy cash positions.

Common Payment Terms Examples for Manufacturing and Distribution

Payment terms in manufacturing and distribution extend beyond simple net day structures to accommodate various business models and risk profiles. Common examples include:

• COD (Cash on Delivery): Payment required upon receipt of goods, eliminating credit risk but potentially limiting sales opportunities
• Due Upon Receipt: Immediate payment required, similar to COD but for services or digital goods
• Net 15: Shorter credit window typically used for new customers or higher-risk relationships
• Net 30: Standard practice for established customer relationships with verified payment history
• Net 60: Extended terms for strategic customers or industries with longer cash conversion cycles
• Net 90: Longest standard terms, often used for government contracts or major construction projects
• 2/10 Net 30: Early payment discount structure offering 2% discount if paid within 10 days, full payment due in 30 days
• Installment Options: Structured payments spread over multiple periods, often used for large equipment purchases

Net 15 Payment Terms: When to Use Them

Net 15 terms serve as a middle ground between immediate payment and standard net 30 terms. They're particularly useful for:

• New customers without established payment history
• Higher-risk industries or customer segments
• Smaller transaction values where extended credit isn't necessary
• Testing customer payment reliability before extending longer terms

COD vs. Net Terms: Pros and Cons

COD Advantages:

• Eliminates credit risk and bad debt exposure
• Provides immediate cash flow
• Simplifies accounts receivable management
• Reduces administrative overhead

COD Disadvantages:

• Limits competitive differentiation
• May exclude credit-dependent customers
• Reduces order size and frequency
• Creates friction in buyer relationships

Net Terms Advantages:

• Increases sales and customer acquisition
• Builds stronger buyer relationships
• Creates competitive advantage
• Enables larger order sizes

Net Terms Disadvantages:

• Delays cash flow
• Requires credit evaluation and management
• Increases administrative complexity
• Exposes business to payment risk

Resolve's AI-powered AR automation platform addresses these challenges by automating reconciliation for any invoice structure—net terms, COD, or due upon receipt—ensuring accuracy across your receivables lifecycle.

How to Implement Net Terms in Your B2B E-Commerce Store

Implementing net terms in B2B e-commerce requires careful integration with existing systems and processes. The goal is to make credit application and approval seamless while maintaining proper risk controls and cash flow management.

Integrating Net Terms into BigCommerce, Shopify, and Magento

Modern B2B e-commerce platforms support various integration approaches for net terms:

• Checkout Extensions: Embed net terms options directly into the existing checkout flow
• Credit Application Workflows: Streamlined processes for credit applications with minimal friction
• Real-time Credit Decisions: Instant approval capabilities for qualified customers
• White-label Payment Portals: Branded experiences that maintain customer relationships

Resolve's flexible API integrates into any custom ecommerce implementation, offering instant approvals for up to $25,000 and white-label payment portals that accept ACH, credit card, wire, or check. This ensures businesses can offer net terms without compromising their brand experience or customer relationships.

Step-by-Step: Embedding Net Terms at Checkout

1. Assess Platform Capabilities: Determine integration options for your specific e-commerce platform (Shopify, BigCommerce, Magento, etc.)
2. Configure Credit Application: Set up streamlined credit application processes requiring minimal customer input
3. Implement Real-time Decisioning: Enable instant credit decisions for qualified customers
4. Design Payment Portal: Create a branded payment experience that accepts multiple payment methods
5. Integrate with Accounting: Ensure seamless synchronization with your ERP and accounting systems
6. Test Thoroughly: Validate the entire customer journey from credit application to payment

Managing Credit Risk When Offering Trade Credit

The primary operational challenge of offering net terms is delayed cash flow and potential bad debt exposure. Studies indicate that businesses offering Net 30 terms experience an average of 15% late payments, with small businesses facing even higher rates around 20%. These delays disrupt financial planning and create unpredictable revenue patterns.

How to Perform Business Credit Checks

Before extending credit, businesses should conduct thorough credit evaluations including:

• Reviewing business credit reports from Dun & Bradstreet or similar agencies
• Verifying business registration and tax status
• Checking trade references from at least 2-3 other suppliers
• Analyzing financial statements for creditworthy customers seeking significant credit lines
• Assessing payment history through business credit bureaus

Resolve provides personalized business credit checks free of charge, requiring only your customer's business name and address, with results delivered within 24 business hours using AI and data from experts formerly of Amazon, PayPal, and Fortune 500 firms. This eliminates the administrative burden while providing deeper insights than traditional credit bureaus.

Trade Credit Insurance vs. Non-Recourse Financing

Traditional approaches to managing credit risk include trade credit insurance and factoring, but these often come with significant limitations:

• Trade Credit Insurance: Requires premiums, has coverage limits, and may exclude certain customers or industries
• Recourse Factoring: Transfers payment risk back to the seller if customers don't pay
• Non-Recourse Financing: Assumes the credit risk entirely, providing true protection

Resolve offers non-recourse financing where all cash advances are non-recourse so what you get is always yours to keep. This provides true risk protection without the complexity and limitations of traditional insurance or factoring arrangements.

Accelerating Cash Flow While Offering Net 60 and Net 90 Terms

The fundamental challenge of offering extended net terms is maintaining healthy cash flow while financing customer purchases. Businesses offering Net 60 and Net 90 terms effectively extend interest-free loans to their customers, which can strain operations especially for smaller companies.

Invoice Advance Pay: Get Paid in 1 Day Instead of 60

Modern fintech solutions enable businesses to offer extended net terms while receiving immediate payment. Resolve pays you upfront for the Net 30-60 terms billed to your customers, taking on billing, collections, and repayment risk. This means you can:

• Maintain competitive net terms offerings
• Receive immediate cash flow
• Eliminate bad debt risk
• Reduce administrative overhead

Resolve offers non-recourse financing with fees at a flat 3.5% for 30-day net terms invoices with a 100% advance, paying you upfront while your buyers keep their payment terms—no twists, turns, or hidden fees.

How Advance Rates Work (50%, 75%, 90%, 100%)

Advance rates typically vary based on customer risk profiles:

• 100% Advance: For low-risk, established customers with strong payment histories
• 90% Advance: Standard rate for qualified customers meeting baseline credit criteria
• 75% Advance: For moderate-risk customers requiring additional risk mitigation
• 50% Advance: For higher-risk customers or those with limited credit history

This risk-based approach ensures businesses can extend credit to a broader range of customers while maintaining appropriate risk management.

Automating AR and Collections for Net Terms

Only 5% of midsize businesses have fully automated their accounts payable and accounts receivable processes, indicating significant room for operational improvement. Manual AR processes are time-consuming, error-prone, and inefficient, particularly when managing multiple payment terms and customer segments.

AI-Powered Payment Reminders and Dunning

Automated payment reminder systems can significantly improve on-time payment rates while reducing administrative burden. Effective systems include:

• Automated reminders at strategic intervals (7 days before due, due date, 7 days late, etc.)
• Escalating communication based on payment status
• Multiple communication channels (email, SMS, portal notifications)
• Personalized messaging based on customer history and preferences

Automated Reconciliation for Multi-Channel B2B Sales

Multi-channel B2B sales create complex reconciliation challenges, particularly when customers use different payment methods and terms across channels. Resolve's LLM-powered invoicing workflow ensures every transaction is synced and reconciled automatically, with auto-bookkeeping that pushes transaction records to QuickBooks linked to the original invoice.

This eliminates manual data entry, reduces errors, and provides real-time visibility into cash flow and customer payment status.

Net Terms for Wholesale Distribution Companies

Wholesale distribution companies face unique challenges in managing net terms due to their complex customer networks, regional operations, and varied product catalogs. Effective net terms strategies for distributors must account for:

• Multi-location buyer operations
• Regional payment preferences and regulations
• Seasonal purchasing patterns
• Bulk order variations
• Reseller credit requirements

How Regional Distributors Use Net 60 Terms

Regional distributors often use Net 60 terms to accommodate:

• Longer inventory turnover cycles
• Seasonal purchasing requirements
• Multi-location buyer consolidation
• Regional market competitive dynamics

Resolve manages every aspect from smart credit checks to payment and collections management, resulting in 30-60% faster payment, 50% less time managing receivables, and 9x faster credit checks—syncing seamlessly with QuickBooks Online.

Offering Credit to Multi-Location Wholesale Buyers

Multi-location buyers present both opportunities and challenges for credit management:

• Opportunities: Larger total order volumes, consolidated relationships, strategic partnerships
• Challenges: Varied payment performance across locations, complex billing requirements, centralized vs. decentralized payment authority

Effective strategies include:

• Centralized credit evaluation with location-specific limits
• Consolidated invoicing with location-level detail
• Flexible payment options accommodating different regional preferences
• Automated communication workflows for multi-location coordination

B2B vs. B2C E-Commerce: Why Payment Terms Differ

The fundamental differences between B2B and B2C e-commerce drive distinct payment term approaches:

Why B2C Uses BNPL While B2B Uses Net Terms

B2C Characteristics:

• Individual consumer credit based on personal credit scores
• Smaller transaction values
• Higher transaction frequency
• Consumer credit card limits constrain purchase size
• BNPL provides instant credit decisions for individual transactions

B2B Characteristics:

• Business credit based on company financials and trade history
• Larger transaction values with significant business impact
• Lower transaction frequency but higher lifetime value
• Net terms provide ongoing credit lines rather than per-transaction approval
• Relationship-based selling requires consistent credit terms across transactions

Transaction Volume and Credit Line Differences

B2B transactions typically involve significantly higher values than B2C, with credit lines often reaching tens or hundreds of thousands of dollars. This requires more sophisticated credit evaluation and ongoing relationship management rather than simple per-transaction approval.

Net terms provide the flexibility businesses need to manage their cash flow while maintaining consistent supplier relationships, whereas B2C BNPL focuses on enabling individual purchase decisions.

Integrating Net Terms with Your ERP and Accounting Stack

Effective net terms implementation requires seamless integration with existing ERP and accounting systems to maintain data accuracy and operational efficiency.

QuickBooks, NetSuite, and Sage Intacct: Native Integrations

Resolve fits directly into your B2B ecommerce and accounting stack with instant plug-ins for QuickBooks Online, Xero, NetSuite, Sage Intacct, Magento 2, Shopify, BigCommerce, and WooCommerce—no need to manually enter customer info. This ensures:

• Real-time synchronization of customer data
• Automated invoice creation and posting
• Seamless payment reconciliation
• Accurate financial reporting
• Reduced manual data entry errors

API-Based Integration for Custom Systems

For businesses with custom ERP or accounting systems, flexible APIs enable:

• Custom integration workflows
• Tailored data mapping requirements
• Integration with legacy systems
• Advanced reporting and analytics capabilities
• Scalable implementation approaches

Real-World B2B E-Commerce Examples: Net Terms in Action

Manufacturing Supplier Offering Net 60 to OEMs

A manufacturing supplier providing components to original equipment manufacturers (OEMs) faces significant cash flow challenges due to the capital-intensive nature of production and the extended payment terms demanded by large OEMs.

By implementing Resolve's net terms solution, the supplier was able to:

• Maintain Net 60 terms required by OEM customers
• Receive 90% advance payment within 24 hours of invoicing
• Eliminate bad debt risk from large customer concentration
• Reduce AR management time by 50%
• Increase production capacity with reliable cash flow

Distributor Using Net 30 for Seasonal Inventory Buyers

A wholesale distributor serving seasonal businesses (landscaping, construction, retail) needed to accommodate customers' cyclical cash flow patterns while maintaining their own operational stability.

With Resolve's platform, the distributor achieved:

• Flexible Net 30 terms for seasonal customers
• Immediate cash flow regardless of customer payment timing
• Automated credit evaluation for new seasonal customers
• Reduced administrative overhead for AR management
• Increased customer retention through consistent credit availability

Trusted by over 12,000 businesses, Resolve pays you upfront for the Net 30-60 terms billed to your customers, integrates seamlessly into your website and checkout flow, and takes on billing, collections, and repayment risk.

Choosing the Right Net Terms Strategy for Your Business

Selecting appropriate net terms requires balancing competitive requirements, customer needs, and cash flow constraints.

When to Offer Net 30 vs. Net 60 vs. Net 90

Net 30: Standard for most B2B relationships, appropriate when:

• Industry standard aligns with Net 30
• Cash flow can accommodate 30-day cycles
• Customer payment history supports standard terms
• Competitive landscape requires standard terms

Net 60: Extended terms for strategic relationships, appropriate when:

• Industry norms support longer terms
• Customer relationships justify extended credit
• Cash flow solutions (like Resolve) mitigate timing risk
• Competitive differentiation requires flexibility

Net 90: Longest standard terms, appropriate when:

• Industry requirements (construction, government) demand extended terms
• Major strategic relationships warrant maximum flexibility
• Comprehensive cash flow solutions eliminate timing risk
• Customer payment reliability justifies extended credit

Resolve's proprietary AI models evaluate thousands of buyer data points to generate dynamic, scalable credit decisions, enabling you to offer extended net terms or installment options tailored to each customer—without delaying your cash flow.

Tailoring Terms by Customer Segment

Effective net terms strategies segment customers based on:

• Payment history and reliability
• Order volume and frequency
• Strategic relationship importance
• Industry and market requirements
• Risk profile and creditworthiness

This enables businesses to offer appropriate terms to each customer segment while maintaining overall cash flow stability and risk management.

Frequently Asked Questions

What is the difference between Net 30, Net 60, and Net 90 payment terms?

Net 30, Net 60, and Net 90 refer to the number of calendar days a customer has to pay an invoice after the invoice date. These terms function as trade credit, allowing buyers to manage their cash flow while maintaining supplier relationships.

How do net payment terms improve B2B e-commerce sales?

Net payment terms improve sales by removing immediate payment barriers and attracting customers who lack upfront capital but have reliable cash flow cycles. They also build stronger customer relationships, leading to increased loyalty and repeat business.

Can I offer net terms without hurting my cash flow?

Yes, by using modern fintech solutions like Resolve that provide advance payment on approved invoices. Resolve advances up to 90% of invoice value within 24 hours, allowing you to offer Net 30, 60, or 90 terms while receiving immediate payment.

How do I integrate net terms into my Shopify or BigCommerce store?

Use specialized B2B payment platforms like Resolve that offer native integrations with e-commerce platforms. The process includes installing a checkout extension, configuring credit workflows, setting up real-time credit decisioning, and connecting to your accounting system.

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.