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.
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 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.
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:
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.
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.
Offering net terms provides safety equipment suppliers with significant business advantages that extend beyond simple transaction convenience.
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.
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.
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.
Understanding how net terms appear in practice helps safety suppliers implement them consistently and professionally.
Invoice Date: April 5, 2025
Customer: ABC Construction Co.
Items:
Invoice Date: March 15, 2025
Customer: XYZ Facility Management
Items:
Invoice Date: April 1, 2025
Customer: DEF Industrial Services
Items:
This structure incentivizes faster payment while maintaining the standard net 30 option for customers who need the full term.
Calculating due dates accurately is essential for maintaining professional relationships and managing cash flow expectations.
For example: Invoice dated Monday, June 3rd with Net 30 terms = Due Wednesday, July 3rd (30 calendar days later).
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.
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:
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.
Choosing between net terms and COD requires careful consideration of your business model, customer base, and financial position.
COD terms are appropriate for:
Net terms make sense when:
Many successful safety suppliers use tiered approaches:
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.
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.
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 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.
Strategic term management involves:
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.
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.
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.
Effective credit management involves tiered limits based on risk assessment:
Credit decisions shouldn't be one-time events. Continuous monitoring allows you to:
Resolve provides personalized business credit checks free of charge, enabling safety suppliers to implement sophisticated risk management without adding administrative overhead.
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.
Effective reminder sequences typically include:
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.
Automated collections workflows should include:
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.
For safety suppliers with online sales channels, embedding net terms directly into the checkout experience is essential for conversion optimization.
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.
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.
Resolve's flexible API integrates with leading ecommerce platforms including:
(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.
Manual data entry between sales, invoicing, and accounting systems creates errors, delays, and reconciliation headaches.
For small to medium safety suppliers using QuickBooks Online, automatic synchronization ensures that:
Larger distributors using enterprise systems like NetSuite, Sage Intacct, or Oracle benefit from:
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.
Successful net terms programs require strategic implementation rather than blanket policies.
Effective segmentation involves:
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.
Consider deposits or personal guarantees when:
Your terms and conditions should clearly specify:
Clear documentation protects both parties and reduces the likelihood of payment disputes that can delay collections.
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.
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.
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.
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.
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.