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.
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.
Payment terms vary significantly across industries based on operational needs, cash flow cycles, and established industry norms. Common variations include:
Industry-specific variations are substantial, with some sectors preferring shorter terms and others requiring extended periods based on operational cycles and industry norms.
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.
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.
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.
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.
Payment terms in manufacturing and distribution extend beyond simple net day structures to accommodate various business models and risk profiles. Common examples include:
Net 15 terms serve as a middle ground between immediate payment and standard net 30 terms. They're particularly useful for:
COD Advantages:
COD Disadvantages:
Net Terms Advantages:
Net Terms Disadvantages:
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.
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.
Modern B2B e-commerce platforms support various integration approaches for net terms:
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.
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.
Before extending credit, businesses should conduct thorough credit evaluations including:
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.
Traditional approaches to managing credit risk include trade credit insurance and factoring, but these often come with significant limitations:
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.
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.
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:
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.
Advance rates typically vary based on customer risk profiles:
This risk-based approach ensures businesses can extend credit to a broader range of customers while maintaining appropriate risk management.
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.
Automated payment reminder systems can significantly improve on-time payment rates while reducing administrative burden. Effective systems include:
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.
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:
Regional distributors often use Net 60 terms to accommodate:
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.
Multi-location buyers present both opportunities and challenges for credit management:
Effective strategies include:
The fundamental differences between B2B and B2C e-commerce drive distinct payment term approaches:
B2C Characteristics:
B2B Characteristics:
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.
Effective net terms implementation requires seamless integration with existing ERP and accounting systems to maintain data accuracy and operational efficiency.
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:
For businesses with custom ERP or accounting systems, flexible APIs enable:
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:
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:
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.
Selecting appropriate net terms requires balancing competitive requirements, customer needs, and cash flow constraints.
Net 30: Standard for most B2B relationships, appropriate when:
Net 60: Extended terms for strategic relationships, appropriate when:
Net 90: Longest standard terms, appropriate when:
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.
Effective net terms strategies segment customers based on:
This enables businesses to offer appropriate terms to each customer segment while maintaining overall cash flow stability and risk management.
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.
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.
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.
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.