Plumbing supply distributors face a fundamental dilemma: contractors often need extended payment terms to manage project cash flow, yet waiting 60 days for payment can strain a distributor's working capital. Construction businesses commonly use invoice terms, and fewer than four in 10 construction businesses report getting paid within 30 days on average based on construction payment data. For distributors, the answer is not to stop offering terms. It is to use modern net terms financing that turns approved receivables into faster cash flow while shifting much of the credit and collections burden away from the distributor.
Net 60 payment terms give buyers 60 calendar days from the invoice date to pay the full amount owed. This 60-day period includes weekends and holidays, making precise due date tracking important for both parties. The terms represent a trade credit agreement where the supplier effectively extends short-term purchasing flexibility to the buyer.
Common variations include early payment discounts that incentivize faster collection:
For plumbing supply distributors, these terms appear on invoices as straightforward payment deadlines. However, the accounting implications extend beyond simple due dates. Revenue recognition, cash flow forecasting, payment reminders, and working capital planning all depend on accurately tracking extended payment windows.
Contractors operate on project-based payment cycles where they often do not receive payment until job completion or milestone achievements. A commercial plumbing project may run for weeks or months, yet fixtures, pipe, valves, fittings, and related materials often need to be purchased upfront.
Net 60 terms provide contractors with:
This buyer preference creates a competitive pressure for distributors. Companies that cannot offer flexible terms may lose opportunities to suppliers that make it easier for contractors to buy now and pay after project cash comes in.
The core problem is timing mismatch. Plumbing distributors may need to pay manufacturers, freight providers, and other vendors before their contractor customers pay them. If suppliers expect payment earlier than customers pay invoices, the distributor has to finance that gap.
Consider a common scenario: a distributor supplies fixtures, valves, and pipe materials for a commercial job. The contractor receives Net 60 terms, but the distributor still has payroll, rent, inventory replenishment, delivery costs, and supplier obligations due before the invoice is collected. The distributor is now carrying that receivable while also funding the next set of orders.
Multiply this across dozens or hundreds of active invoices, and distributors can quickly have substantial working capital tied up in receivables they cannot use for inventory, sales growth, or operating expenses.
The U.S. Census Bureau's Quarterly Financial Report tracks financial results and balance sheet data across industries, including wholesale trade, which reinforces how important receivables management is for distributors. In practice, a plumbing supplier's growth can create more cash pressure if sales increase faster than collections.
Beyond timing, plumbing distributors face compounding challenges:
For plumbing supply companies, the challenge is not just offering Net 60. The challenge is offering Net 60 without turning every growth opportunity into a cash flow problem.
The same buy now, pay later concept that transformed consumer retail is now becoming part of B2B commerce. Embedded B2B BNPL allows plumbing contractors to apply for payment terms directly within the buying process, whether online, through a field sales rep, or through a merchant's internal ordering workflow.
This approach modernizes the traditional trade credit process by:
For plumbing distributors, embedded net terms mean offering competitive Net 30, Net 60, or Net 90 options without managing every part of credit assessment, collections, and risk exposure internally.
Resolve Pay's B2B payments platform helps sellers offer net terms, payments, invoicing, and reconciliation through a connected B2B payments workflow. Resolve Pay also supports ecommerce and finance stack connections, including systems such as QuickBooks Online, Xero, Sage Intacct, NetSuite, Magento 2, BigCommerce, and custom API integrations through its integration options.
A typical embedded net terms flow works like this:
For pre-approved buyers, the process can feel even more direct because the buyer can see available purchasing power without repeating a full manual application each time.
Net term financing changes the economics of offering extended terms. Instead of waiting 60 days or longer for payment, distributors can receive an advance on approved invoices while buyers keep their agreed payment schedule.
Resolve Pay's B2B net terms product states that it underwrites customers in real time and can advance up to 90% of approved invoice value within 24 hours, with advance payment deposited within 1 to 2 business days after the approved invoice is submitted. Resolve Pay's broader net terms materials also describe advance pay structures that may reach up to 100% depending on the product, risk profile, and approved invoice.
This liquidity transformation works through a straightforward process:
The result is a shorter cash conversion cycle for the distributor. Instead of tying up capital in receivables for months, the distributor can use the cash to replenish inventory, pay suppliers, support sales, and serve more contractors.
The non-recourse structure is important for distributors that want to offer terms without absorbing every credit loss. Resolve Pay states that it takes on the credit assessment, credit decision, and the majority risk of late payments or defaults, so merchants are not on the hook if an approved customer fails to pay.
This shifts much of the risk burden away from the distributor:
For plumbing distributors that have experienced contractor defaults, delayed project payments, and customer disputes, this risk transfer can provide meaningful protection while allowing the distributor to keep offering terms.
Resolve Pay's net terms platform supports credit checks, payment and collections management, advance pay, and white-label features so distributors can maintain customer relationships while improving cash flow.
Offering Net 60 terms without automation creates operational strain. Traditional AR processes become harder to manage as invoice count, customer count, and payment timelines grow.
Manual collections often involve:
Communication gaps can tie up capital even when customers intend to pay. Invoices get missed, reminders go unanswered, and unclear payment instructions create avoidable delays. For distributors operating on high-volume, repeat orders, those delays add up quickly.
Resolve Pay's accounts receivable automation platform is designed to automate the receivables workflow from credit checks and invoice management to payment collection and reconciliation.
Key AR automation capabilities include:
Resolve Pay's agentic collections capabilities extend this workflow with AI-powered collections support for outbound communication and follow-up. For plumbing distributors, that means AR teams can spend less time chasing routine payments and more time managing exceptions, customer relationships, and strategic accounts.
Traditional business credit checks often require forms, references, financial statements, and manual review. That process can slow down sales, especially when a contractor needs materials quickly to keep a job moving.
Resolve Pay's business credit check workflow requires a customer's business name and address and can deliver results within 24 business hours. Resolve Pay's broader ecommerce materials also state that some purchases up to $25,000 may qualify for instant approvals through its net terms checkout experience.
This helps distributors move faster when contractors request payment terms. Instead of delaying the order while internal teams review credit manually, Resolve Pay can support a more streamlined approval process.
The challenge for plumbing distributors is not just speed. It is also making credit decisions that match each buyer's risk profile. Many suppliers extend terms based on relationship history alone, which can leave them exposed when a buyer's cash position changes.
Resolve Pay's credit engine evaluates buyer data points, including cash flow trends and behavioral signals, to support dynamic credit decisions. Its credit workflow also allows quiet pre-approval checks using basic business information, helping distributors evaluate risk without creating unnecessary friction for the customer.
This approach helps plumbing suppliers:
For distributors trying to grow, better credit decisions make it easier to say yes to the right customers while protecting working capital.
Invoice factoring has existed for decades, and it can provide cash flow support in some situations. However, many plumbing distributors want a more integrated approach that supports payment terms, credit decisioning, customer experience, and AR automation together.
Common concerns with traditional factoring include:
The point is not that factoring never works. The point is that many modern B2B distributors need more than a financing transaction. They need a credit-to-cash workflow that supports how customers buy.
The distinction matters for plumbing supply companies evaluating options.
Traditional invoice factoring may include:
Resolve Pay's net terms financing model can include:
Resolve Pay operates as a factoring alternative for B2B merchants that want to offer net terms, improve cash flow, reduce bad debt exposure, and preserve customer relationships through a more embedded payment experience.
The operational benefits extend beyond cash flow. Plumbing distributors using integrated AR and net terms platforms can reduce manual work across credit applications, invoice tracking, payment reminders, and reconciliation.
Resolve Pay's ERP integrations help connect payment and receivables workflows with existing systems. Supported connections include:
Invoice data can flow into Resolve Pay, payment status can sync back, and the distributor's finance stack can stay more current without duplicate entry. For businesses with high invoice volume, that integration matters because every manual touchpoint creates more room for delay or error.
When plumbing distributors reduce the friction of offering net terms, they can focus more attention on growth. Flexible terms help contractors buy the materials they need, while automated credit and AR workflows help the distributor avoid taking on unnecessary operational burden.
A stronger net terms process can support:
For plumbing supply companies competing on service, availability, and relationships, the ability to offer Net 60 without sacrificing cash flow can become a practical advantage.
Offering Net 60 terms does not have to drain working capital or expose plumbing distributors to unmanaged credit losses. Resolve Pay helps transform the economics of extended payment terms by combining net terms financing, non-recourse support for approved buyers, credit decisioning, AR automation, and integrations with ecommerce, ERP, and accounting systems.
The result is a more scalable way to serve contractors. Buyers can keep the payment flexibility they need, while distributors can get paid faster, protect cash flow, and reduce the manual burden of managing receivables.
For plumbing supply companies ready to grow without creating a larger cash flow squeeze, Resolve Pay provides a practical path forward: offer competitive payment terms, automate the credit-to-cash process, and keep working capital available for the next order, the next customer, and the next growth opportunity.
Net 60 terms help contractors align material purchases with project payment schedules. Since contractors may not receive payment until milestones or job completion, extended terms let them buy required materials without immediately tying up all available working capital.
Resolve Pay's non-recourse structure means Resolve Pay takes on the credit assessment, credit decision, and the majority risk of late payments or defaults for approved buyers. This helps protect distributors from bearing the full risk of approved customer nonpayment.
Yes. Resolve Pay supports integrations with systems such as QuickBooks Online, Xero, Sage Intacct, NetSuite, Magento 2, BigCommerce, and custom API integrations. These connections help sync invoice, payment, and reconciliation workflows with the distributor's finance stack.
Implementation timing depends on the ecommerce, ERP, accounting, and workflow setup involved. Once configured, Resolve Pay can support fast buyer credit workflows and advance payment on approved invoices based on the applicable funding structure.
Credit limits depend on the buyer's business profile, verification results, transaction size, and Resolve Pay's credit decisioning process. Some ecommerce purchases up to $25,000 may qualify for instant approvals, while larger or more complex requests may require additional review.
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.