Trade credit insurance offers protection for construction material suppliers in an industry known for slow payments and complex collection processes. Traditional insurance covers a significant portion of losses after buyer default but doesn't address immediate cash flow needs—suppliers still wait 60-90+ days for payment while managing state-specific lien deadlines. Modern solutions like Resolve's B2B Net Terms platform advance 90-100% of invoice value within 24 hours with non-recourse protection, enabling suppliers to offer competitive Net 30/60/90 terms while receiving immediate payment.
Construction material suppliers operate in an environment with extended payment cycles. Rabbet's 2024 Construction Payments Report found that 82% of contractors now face payment waits exceeding 30 days, a significant increase from just 49% two years prior. Construction payment delays can extend to 60+ days on average, creating a cash flow gap where suppliers must pay for inventory and labor immediately while waiting extended periods to receive client payments.
This timing dynamic affects the entire industry, with payment delays costing construction businesses an estimated $280 billion USD in 2024 alone. Construction firms in England and Wales topped insolvency lists in the 12 months ending September 2023, highlighting the financial pressures affecting the sector. These realities make effective payment and risk management essential for construction material suppliers.
Mechanics liens provide construction suppliers with legal claims against properties being improved. These tools serve an important role in the construction payment landscape:
The hierarchical payment structure in construction (owner → general contractor → subcontractors → suppliers) places suppliers downstream in the payment chain. With retainage often held until project completion, suppliers may experience additional payment delays beyond standard terms, making working capital management critical.
Trade credit insurance transfers credit risk from suppliers to insurance providers, typically covering 75-95% of outstanding invoice value after covered non-payment events occur. These events generally include buyer insolvency, protracted default (typically defined as non-payment beyond 90-180 days), and political risk in international transactions. Premium costs range from 0.1-0.6% of covered sales.
Insurance operates on a claims basis—suppliers continue normal collection activities and receive insurance payments after meeting specific policy requirements. This structure provides financial protection against significant buyer defaults while suppliers manage ongoing cash flow through their existing processes.
Trade credit insurance delivers several forms of protection for construction material suppliers:
These protections serve specific risk management needs, particularly for suppliers managing large customer portfolios or expanding into new markets.
Trade credit insurance policies include certain parameters that suppliers should understand:
Understanding these elements helps suppliers evaluate how trade credit insurance fits within their broader financial strategy.
Construction projects involve multiple payment considerations:
These factors make effective receivables management essential for construction material suppliers navigating complex payment environments.
Modern accounts receivable management software provides tools for optimizing cash flow and streamlining operations. These platforms use AI-powered automation throughout the AR lifecycle:
Resolve's Accounts Receivable with AI-Powered Automation platform uses AI agents to manage workflows, automate payment reminders, and reduce friction in collections while maintaining brand consistency.
Advanced AR management platforms provide construction suppliers with comprehensive operational tools:
These capabilities transform AR management from an administrative function into a strategic tool supporting business growth and financial stability.
Mechanics liens involve navigating state-specific requirements and processes:
Effective lien management requires careful attention to deadlines and requirements across multiple concurrent projects.
Professional collections management helps suppliers maintain customer relationships while ensuring payment:
Professional management allows suppliers to focus on core operations while ensuring effective receivables handling.
Resolve's B2B Net Terms platform addresses construction suppliers' cash flow needs directly. The platform advances up to 100% of invoice value within 24 hours for approved customers, eliminating the working capital gap that traditionally constrains growth. This immediate cash access allows suppliers to pay vendors, invest in inventory, and pursue growth opportunities without waiting for customer payments.
The platform uses proprietary AI models to evaluate thousands of buyer data points, generating dynamic credit decisions that enable instant approvals for purchases up to $25,000 USD. This allows suppliers to offer competitive Net 30/60/90 terms while receiving immediate payment, transforming payment terms from a constraint into a competitive advantage.
Resolve Pay's non-recourse financing model provides comprehensive risk protection:
This structure allows suppliers to focus on business development and operations while Resolve manages credit and collections processes.
Resolve's B2B Payments Platform provides end-to-end AR management beyond payment processing:
This comprehensive approach consolidates previously fragmented systems into a unified platform that streamlines AR operations.
Resolve's Integrations with Financial Tech Stack ensure compatibility with existing business systems:
These integrations enhance existing operations without requiring significant workflow changes, providing immediate benefits while preserving established processes.
Resolve positions itself as a modern alternative to factoring by providing comprehensive payment solutions:
This comprehensive model addresses multiple business needs simultaneously rather than solving only the financing component.
Resolve Pay provides construction material suppliers with several operational advantages:
These elements work together to support business growth while maintaining operational simplicity.
Resolve Pay delivers a purpose-built solution for construction material suppliers navigating extended payment cycles and complex credit management. The platform advances up to 100% of invoice value within 24 hours while managing the entire credit and collections process, effectively serving as an extension of your team.
With AI-powered automation, Resolve Pay streamlines AR management while its non-recourse structure provides confidence that advanced funds remain yours regardless of buyer outcomes. The platform's seamless integration with existing accounting and ecommerce systems means enhanced capabilities without operational disruption.
Construction suppliers using Resolve Pay can confidently offer competitive Net 30/60/90 terms without cash flow constraints or balance sheet risk. The platform's transparent approach and comprehensive service model—covering credit assessment, advance funding, and collections management—provides a unified solution for managing construction payment complexity.
For construction material suppliers seeking to eliminate extended payment waits while winning more business with competitive payment terms, Resolve Pay provides an integrated platform that addresses both immediate cash flow needs and long-term risk protection.
Resolve Pay provides immediate cash advances of up to 100% of invoice value within 24 hours, while trade credit insurance typically pays only after buyer default and covers 75-95% of losses. Resolve Pay combines upfront payment with non-recourse protection and professional collections management in a single integrated platform, addressing both cash flow and risk management needs simultaneously.
Yes, Resolve Pay specifically enables construction suppliers to offer competitive Net 30/60/90 terms to customers while receiving up to 100% of invoice value within 24 hours. The platform's real-time credit decisions enable instant approvals for purchases up to $25,000 USD, making it easy to provide flexible terms while maintaining strong cash flow.
Resolve Pay's cash advances are non-recourse, meaning funds advanced to suppliers remain theirs regardless of buyer payment outcomes. Resolve handles the entire collections process, including payment reminders and professional collections efforts, while suppliers maintain their customer relationships without direct involvement in collection activities.
Resolve Pay advances up to 100% of invoice value within 24 hours for approved customers, compared to typical construction payment cycles that can extend 60+ days. This immediate cash access eliminates working capital gaps and enables suppliers to operate without payment-related constraints.
Yes, Resolve Pay offers seamless integration with major accounting platforms (QuickBooks, Xero, NetSuite, Sage Intacct) and ecommerce systems (Shopify, BigCommerce, Magento, WooCommerce). The white-label payment portal maintains your brand identity throughout the customer experience, and the platform automatically syncs transaction data with your existing systems.
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.