Net 30/60/90 Terms – Guide for Safety & PPE Suppliers

Updated on October 21, 2025

Net payment terms represent both a significant growth opportunity and a potential cash flow challenge for safety and PPE suppliers. With 77% of B2B businesses experiencing late payments in 2024 and 19% of invoices paid more than 60 days late, according to the Atradius Payment Practices Barometer 2024, offering trade credit requires a strategic approach. 

For PPE distributors, implementing net terms without proper safeguards can strain operations, yet not offering them may put you at a competitive disadvantage in an industry where flexible payment options are increasingly expected. ResolvePay's B2B net terms automation platform helps safety suppliers navigate this balance by accelerating cash flow while extending credit to qualified buyers.

Key Takeaways

• Net terms can increase sales by removing purchasing barriers for cash-constrained safety equipment buyers, but 77% of B2B businesses experience late payments that strain operations
• Safety suppliers face a fundamental cash flow challenge: offering net 60/90 terms while managing their own operational expenses and supplier payments
• Early payment discounts (like 2/10 Net 30) can accelerate cash collection, with the implied annualized return of approximately 36.7% (based on a 360-day year convention) making these offers financially attractive to buyers with available capital
• Proper credit checking is essential—Resolve provides free business credit checks requiring only a company name and address
• According to a 2023 Deloitte survey of mid-market companies, accounts receivable automation can reduce average payment time from 78 days to 55 days while improving accuracy and customer experience for businesses handling significant invoice volumes
• Non-recourse invoice advances allow safety suppliers to offer extended terms while often getting paid within 24 hours for eligible invoices—significantly narrowing the cash flow gap
• Strategic customer segmentation—offering different terms based on creditworthiness—protects against the risk that 55% of B2B invoiced sales are overdue, with approximately 9% uncollectible, according to Dun & Bradstreet's Trade Credit Survey

What Are Net 30/60/90 Payment Terms for Safety Equipment Suppliers?

Net payment terms are deferred payment agreements that allow business customers extra time to pay for safety equipment after receiving an invoice. The number in "Net 30," "Net 60," or "Net 90" represents the number of calendar days a customer has to pay after the invoice date. For safety equipment suppliers, this means a contractor who purchases hard hats, safety harnesses, or respirators today could have 30, 60, or even 90 days to remit payment.

These terms function as interest-free financing extended by the supplier to the buyer, creating a fundamental tension in B2B commerce where buyers expect flexible payment options while sellers need predictable cash flow to maintain inventory and cover operational expenses.

Net 30 Definition and Timeline

Net 30 is the most common payment term in B2B transactions, including the safety equipment industry. If you issue an invoice on March 1st with Net 30 terms, payment is due by March 31st. This timeline applies regardless of when the customer actually receives the invoice or goods, which is why clearly stating the invoice date is critical.

Net 60 and Net 90 Extended Terms

While Net 30 is standard, Net 60 and Net 90 terms are particularly common in industries involving complex transactions or established relationships. For safety suppliers, longer terms are often requested by:

• Large facility management companies with corporate procurement processes
• Government contractors working on extended projects
• School districts with quarterly budget cycles
• Industrial manufacturers with complex approval workflows

However, extending terms beyond 30 days significantly increases cash flow pressure, as 43% of small business owners with cash flow problems have struggled to pay their employees on payday, according to Intuit QuickBooks Cash Flow Survey.

How These Terms Differ from COD

Cash on Delivery (COD) requires immediate payment upon receipt of goods, eliminating credit risk but potentially limiting sales opportunities. Net terms remove this purchasing barrier, allowing small to medium-sized businesses to buy essential safety equipment when they need it most, even if they lack immediate funds. This flexibility gives buyers the chance to complete projects or generate revenue before paying their suppliers.

Why Safety and PPE Suppliers Use Net Payment Terms

Offering net terms provides safety equipment suppliers with significant business advantages that extend beyond simple transaction convenience.

Larger Orders and Repeat Business

When customers don't need to pay immediately, they're more likely to purchase in larger quantities or add complementary items to their order. A contractor needing fall protection might add safety glasses, gloves, and harnesses to a single order when they can spread the payment over 30-60 days rather than paying upfront.

Meeting Buyer Expectations in the Safety Industry

In today's B2B environment, net terms have become an expected standard rather than a special accommodation. According to procurement leaders at major industrial companies, buyers gravitate toward the path of least resistance for purchases, meaning they will choose suppliers offering credit even if there's a possibility of incurring late fees. For safety equipment buyers managing multiple project sites, the ability to consolidate purchases with suppliers offering flexible terms streamlines their procurement process.

Competitive Edge Over COD-Only Competitors

If it's common for your industry to offer net terms, not offering them may put your company at a disadvantage. New clients typically choose suppliers who remove purchasing barriers, making net terms a critical competitive differentiator in the safety equipment market. This is especially true when competing against larger distributors who already offer extended payment options.

Resolve's Net Terms Management solution helps safety suppliers increase buyer purchasing power by 30-60% while automating credit checks and collections management.

Common Payment Terms Examples in the Safety Equipment Industry

Understanding how net terms appear in practice helps safety suppliers implement them consistently and professionally.

Net 30 Example: PPE Glove Order

Invoice Date: April 5, 2025
Customer: ABC Construction Co.
Items:

• 100 pairs Mechanic Gloves @ $5.00 = $500.00
• 50 pairs Cut-Resistant Gloves @ $12.00 = $600.00
  Subtotal: $1,100.00
  Tax: $88.00
  Total: $1,188.00
  Payment Terms: Net 30
  Due Date: May 5, 2025

Net 60 Example: Bulk Safety Harness Purchase

Invoice Date: March 15, 2025
Customer: XYZ Facility Management
Items:

• 25 Full-Body Safety Harnesses @ $120.00 = $3,000.00
  Subtotal: $3,000.00
  Tax: $240.00
  Total: $3,240.00
  Payment Terms: Net 60
  Due Date: May 14, 2025

Discount Terms: 2/10 Net 30 for Respirators

Invoice Date: April 1, 2025
Customer: DEF Industrial Services
Items:

• 100 N95 Respirators @ $3.50 = $350.00
• 50 P100 Cartridges @ $8.00 = $400.00
  Subtotal: $750.00
  Tax: $60.00
  Total: $810.00
  Payment Terms: 2/10 Net 30
  Discount Details: 2% discount if paid by April 11, 2025 ($793.80); otherwise full payment due by May 1, 2025

This structure incentivizes faster payment while maintaining the standard net 30 option for customers who need the full term.

How to Use a Net 30 Calculator for Your Invoices

Calculating due dates accurately is essential for maintaining professional relationships and managing cash flow expectations.

Step-by-Step Calculation Formula

1. Identify the invoice date (not the delivery date or order date)
2. Add the number of days specified in your payment terms
3. Account for weekends and holidays if your terms specify business days (most standard net terms use calendar days unless otherwise stated)

For example: Invoice dated Monday, June 3rd with Net 30 terms = Due Wednesday, July 3rd (30 calendar days later).

Adjusting for Weekends and Holidays

Most standard net terms use calendar days rather than business days, meaning weekends and holidays are included in the count. However, if your due date falls on a weekend or major holiday, it's common practice to extend the deadline to the next business day. Always specify this policy clearly on your invoices to avoid confusion.

Tracking Due Dates in Your AR System

Manual tracking becomes impractical as your customer base grows. According to ResolvePay internal benchmarking data (2024), businesses handling high invoice volumes with automation receive payment in 55 days on average, compared to 78 days without automation. An effective accounts receivable system should:

• Automatically calculate due dates based on invoice date and terms
• Flag upcoming due dates for proactive communication
• Generate aging reports categorizing receivables as current, 1-30 days late, 31-60 days late, etc.
• Track payment patterns by customer to identify potential issues early

Resolve's AI-powered accounts receivable platform automates reconciliation for any invoice structure—net terms, COD, or due upon receipt—ensuring accuracy and efficiency across your receivables lifecycle.

Net 30 vs. COD: Which Payment Terms Are Right for Your Safety Supply Business?

Choosing between net terms and COD requires careful consideration of your business model, customer base, and financial position.

When to Offer COD Terms

COD terms are appropriate for:

• New customers without established credit history
• One-time or infrequent buyers
• Customers with poor payment histories
• Small orders where credit processing overhead exceeds benefit
• High-risk industries or economic conditions

When to Offer Net Terms

Net terms make sense when:

• You're dealing with established customers with good payment histories
• Competing in markets where trade credit is standard practice
• Customers are making substantial or recurring purchases
• You have sufficient working capital to cover the receivables gap
• You can implement proper credit checking and monitoring systems

Hybrid Strategies for New vs. Established Customers

Many successful safety suppliers use tiered approaches:

• New customers: Start with Net 15 or require 50% deposit with balance due on delivery
• Established customers (6+ months): Offer Net 30 with credit limits based on payment history
• Preferred customers (12+ months, excellent payment history): Extend to Net 60 with higher credit limits

Resolve's free business credit checks enable suppliers to confidently segment customers for COD vs. net terms, requiring only your customer's business name and address with results typically within 24 business hours.

Managing Cash Flow When Offering Net 60 or Net 90 Terms

The fundamental challenge of offering extended payment terms is the working capital gap: you must pay your own expenses and suppliers while waiting 60-90 days to receive payment from customers.

The 60-Day Cash Gap Challenge

Small business owners miss out on significant yearly earnings due to cash flow problems, with the timing mismatch between customer payments and supplier bills being a primary contributor. For safety suppliers purchasing inventory from manufacturers who demand Net 15 or Net 30 terms, offering Net 60 or Net 90 to customers creates a dangerous cash flow gap.

Invoice Advance Solutions

Invoice advance services allow you to receive immediate payment (typically 75-100% of invoice value) while the financing company assumes the collection responsibility and credit risk. Resolve underwrites your customers in real time and advances up to 100% of your invoice value for eligible programs (standard advances up to 90%)—often within 24 hours—so you can offer extended terms without delaying your cash flow.

Balancing Supplier Payments and Customer Terms

Strategic term management involves:

• Negotiating longer payment terms with your own suppliers when possible
• Maintaining cash reserves equal to 60-90 days of operating expenses
• Using early payment discounts from suppliers only when you have excess cash
• Implementing dynamic credit limits based on customer payment performance
• Monitoring Days Sales Outstanding (DSO) as a key performance indicator

For suppliers needing maximum cash flow flexibility, Resolve offers a non-recourse alternative to factoring with a flat 3.5% fee for 30-day net terms invoices with 100% advance, eliminating hidden fees while preserving customer relationships.

Credit Checks and Risk Management for Safety Equipment Buyers

Proper credit assessment is the foundation of successful net terms programs, protecting against the reality that a significant percentage of B2B invoiced sales become overdue or uncollectible.

Running Credit Checks Without Hurting Customer Relationships

Traditional credit applications can feel intrusive and create friction in new business relationships. Resolve's approach requires only your customer's business name and address, delivering results typically within 24 business hours without any customer interaction. This "quiet pre-approval" process allows you to extend appropriate credit limits while maintaining a smooth onboarding experience.

Setting Dynamic Credit Limits by Buyer

Effective credit management involves tiered limits based on risk assessment:

• Low-risk buyers (established businesses, strong payment history): Higher limits, longer terms
• Medium-risk buyers (newer businesses, limited credit history): Conservative limits, shorter terms
• High-risk buyers (poor credit, industry volatility): COD only or significant deposits required

Monitoring Ongoing Payment Behavior

Credit decisions shouldn't be one-time events. Continuous monitoring allows you to:

• Increase limits for customers demonstrating reliable payment patterns
• Reduce limits or require deposits for customers showing payment deterioration
• Identify industry-specific risks (e.g., construction companies during economic downturns)
• Adjust terms proactively before problems become severe

Resolve provides personalized business credit checks free of charge, enabling safety suppliers to implement sophisticated risk management without adding administrative overhead.

Automating Net Terms Invoicing and Collections for PPE Distributors

Manual accounts receivable processes become unsustainable as your business grows, with 87% of businesses reporting overall process speed improvements with AR automation, according to research.

Setting Up Automated Payment Reminders

Effective reminder sequences typically include:

• 7 days before due date: Friendly reminder with payment portal link
• Due date: Formal notification with invoice details
• 7 days past due: Escalated reminder with late fee notice (if applicable)
• 14 days past due: Phone follow-up combined with email
• 30+ days past due: Collections process initiation or third-party involvement

Branded Payment Portals for Professional Image

A professional, branded payment portal enhances customer experience while increasing payment options. Resolve's white-label payment portal accepts ACH, check, and credit card payments (see ResolvePay payment solutions for current capabilities), allowing customers to choose their preferred method while maintaining your brand identity throughout the process.

Handling Late Payments and Collections

Automated collections workflows should include:

• Clear escalation procedures with defined ownership
• Consistent communication templates maintaining professional tone
• Integration with credit reporting to incentivize timely payment
• Regular review of aging reports to identify systemic issues
• Defined thresholds for when to involve third-party collections

Resolve's Net Terms Management solution automates the time-consuming tasks of payment reminders, servicing, and collections with a white-label payment portal that accepts multiple payment methods.

Integrating Net Terms into Your Safety Equipment Ecommerce Platform

For safety suppliers with online sales channels, embedding net terms directly into the checkout experience is essential for conversion optimization.

Embedding Net Terms at Checkout

Modern B2B buyers expect to see payment options during checkout, not as a post-purchase surprise. Checkout extensions enable you to embed Net 30, 60, or BNPL options directly into your existing ecommerce flow, with credit decisions happening in real-time.

Instant Approval Limits for Safety Product Orders

Eligible purchases may qualify for instant approvals (limits vary by buyer creditworthiness and profile), allowing qualified buyers to complete their purchase without waiting for manual credit review. This is particularly valuable for safety equipment orders where customers need immediate delivery for compliance or project requirements.

Platform Integrations: Shopify, BigCommerce, Magento

Resolve's flexible API integrates with leading ecommerce platforms including:

• Shopify: Native integration with B2B checkout extensions
• BigCommerce: Direct integration for B2B storefronts
• Magento: Robust API support for enterprise implementations
• WooCommerce: Plugin available for WordPress-based stores

(See ResolvePay integrations for current integration details)

These integrations ensure that approved customers see their available credit limits and terms directly in the shopping cart, reducing cart abandonment and increasing average order value.

Resolve's ecommerce net terms integration provides buy now pay later options shown to increase sales volume and customer retention in ResolvePay customer implementations, with flexible API integration for custom implementations.

Syncing Net Terms with Your Accounting and ERP Systems

Manual data entry between sales, invoicing, and accounting systems creates errors, delays, and reconciliation headaches.

QuickBooks Auto-Sync for Net Terms Invoices

For small to medium safety suppliers using QuickBooks Online, automatic synchronization ensures that:

• Every net terms invoice is recorded in your accounting system immediately
• Payments received are automatically applied to the correct invoice
• Credit memos and adjustments sync in real-time
• Financial reports accurately reflect your true accounts receivable position

ERP Integration for Multi-Location Safety Distributors

Larger distributors using enterprise systems like NetSuite, Sage Intacct, or Oracle benefit from:

• Bi-directional data flow between Resolve and ERP systems
• Automatic customer record synchronization
• Real-time inventory and order status updates
• Comprehensive financial reporting across multiple business units

Real-Time Reconciliation and Reporting

LLM-powered invoicing workflows help ensure transactions are synced and reconciled automatically, eliminating the manual reconciliation that consumes hours of finance team time each week. This accuracy is particularly important when managing mixed payment terms across different customer segments.

Resolve's QuickBooks and ERP integrations sync directly into your accounting software for seamless payment reconciliation and financial reporting, with built-in integrations for QuickBooks, NetSuite, Sage Intacct, and more.

Best Practices: Offering Net Terms While Protecting Your Safety Supply Business

Successful net terms programs require strategic implementation rather than blanket policies.

Segmenting Customers by Risk and Order Size

Effective segmentation involves:

• Tier 1: Established customers with excellent payment history—offer Net 60/90 with higher limits
• Tier 2: New customers with good credit scores—start with Net 30 and conservative limits
• Tier 3: High-risk customers or new businesses—require deposits or offer shorter terms
• Tier 4: One-time buyers or poor credit—COD only

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.

When to Require Deposits or Guarantees

Consider deposits or personal guarantees when:

• Dealing with very new businesses (less than 2 years old)
• Customers request terms significantly longer than industry standard
• Order sizes exceed typical credit limits for the customer segment
• Industry conditions suggest increased risk (economic downturns, regulatory changes)
• Customers have limited or poor business credit history

Writing Clear Net Terms into Contracts

Your terms and conditions should clearly specify:

• Exact payment due dates and calculation methods
• Accepted payment methods and processing details
• Late payment penalties (if any) and how they're calculated
• Dispute resolution procedures and timelines
• Credit limit review and adjustment processes
• Conditions under which terms may be revoked or modified

Clear documentation protects both parties and reduces the likelihood of payment disputes that can delay collections.

Frequently Asked Questions

How do I calculate the due date for a Net 30 invoice issued to a safety equipment buyer?

Net 30 means payment is due 30 calendar days after the invoice date. For example, an invoice issued on March 15th is due April 14th. Most standard net terms use calendar days (not business days), so weekends and holidays are included.

What is the difference between Net 30 and COD payment terms for PPE suppliers?

Net 30 allows customers 30 days to pay after the invoice date, providing interest-free financing that can increase sales. COD requires immediate payment upon delivery, eliminating credit risk but potentially limiting sales to customers who need time to generate revenue before paying.

Can I offer Net 60 or Net 90 terms without waiting to get paid?

Yes, through non-recourse invoice advance services like ResolvePay. These services advance up to 100% of your invoice value (often within 24 hours for eligible invoices) while you offer extended terms to customers. The financing company handles collections and assumes credit risk.

How do I run a credit check on a new safety equipment customer discreetly?

Resolve provides quiet pre-approval credit checks requiring only your customer's business name and address, with results typically within 24 business hours and no customer interaction needed. This maintains a smooth onboarding experience while protecting your business from credit risk.