For industrial equipment suppliers, a single customer default on a high-ticket capital equipment sale can significantly impact profitability and business operations. Trade credit insurance has traditionally protected large invoices by transferring payment risk to underwriters, though suppliers still wait 30-90 days for payment while bearing operational costs. Modern net terms solutions like ResolvePay offer an integrated approach with guaranteed payment through advance funding (up to 90% within 24 hours) combined with non-recourse credit protection, accelerating cash flow while managing risk.
The industrial equipment sector operates with net profit margins typically ranging from 4-10% in manufacturing, while dealing with high-value transactions ranging from $50,000 to $500,000 or more. This creates a concentration of risk where a single customer default can significantly impact business performance.
With a 4% net profit margin, a $50,000 bad debt requires $1,250,000 in additional sales just to break even—before accounting for interest charges or opportunity costs. In recent years, the UK manufacturing industry has experienced significant insolvency increases, with thousands of companies facing financial difficulties, while 80% of manufacturing businesses report challenges identifying creditworthy customers.
When suppliers extend Net 30-90 payment terms to win competitive deals, they assume credit risk while funding operations with their own capital. Your risk exposure depends on several critical factors:
This environment requires industrial equipment suppliers to balance competitive payment terms with financial security, leading many to explore risk management solutions.
Trade credit insurance (TCI) transfers the risk of customer non-payment to specialized insurance underwriters, providing indemnification when buyers default due to insolvency, bankruptcy, or prolonged non-payment. The global trade credit insurance market continues to grow significantly, reflecting increasing awareness of credit risk in volatile economic conditions.
Trade credit insurance operates through several policy structures:
Premiums typically range from 0.1-0.6% of covered sales, with the average around 0.2%. Policies generally provide coverage for 80-90% of invoice values after deductibles, with waiting periods before claims can be filed and additional processing time for reimbursement.
Traditional TCI provides a safety net by reimbursing losses after customer defaults. The insurance covers situations where buyers fail to pay due to insolvency or bankruptcy, though policies typically include deductibles and exclusion clauses for disputed invoices or certain conditions. Suppliers continue to manage their standard payment timelines, with insurance providing backup protection if those timelines aren't met.
For industrial equipment suppliers handling high-value transactions, trade credit insurance offers one approach to risk management, though it addresses protection rather than cash flow acceleration.
While trade credit insurance provides loss protection, it doesn't address the fundamental cash flow gap created by offering net terms. Research shows 64% of B2B buyers want to purchase using trade credit, and approximately 50% of invoices are paid late.
For manufacturers with $100,000 monthly operating costs, extending terms from Net 30 to Net 90 requires substantial additional liquidity reserves. According to the U.S. Small Business Administration, cash flow management is critical for business success, with many business failures related to inadequate cash flow planning.
Traditional insurance provides reimbursement after losses occur but doesn't provide immediate liquidity for approved invoices. This creates a scenario where increasing sales through competitive payment terms requires additional working capital while payments are outstanding.
ResolvePay offers a comprehensive platform that combines instant credit assessment, non-recourse advance payments, and AR automation into a single integrated solution. Instead of waiting for reimbursement after defaults, ResolvePay provides immediate liquidity while transferring credit risk.
The core offering is ResolvePay's advance payment structure:
This approach transforms net terms from a working capital challenge into a growth enabler by providing immediate cash flow while managing credit risk. Suppliers can offer the payment flexibility that B2B buyers demand without straining their own finances.
ResolvePay's comprehensive platform addresses multiple aspects of B2B credit management:
This integrated framework provides guaranteed payment on every approved transaction while automating the operational complexity of accounts receivable management.
ResolvePay's platform creates value for both buyers and sellers in industrial equipment transactions. Buyers gain access to flexible financing that enables larger purchases, while sellers receive guaranteed payment without credit risk exposure.
Industrial equipment buyers receive significant advantages through ResolvePay's platform:
For buyers making substantial equipment purchases, this financing flexibility often influences purchasing decisions and enables better cash flow management for their operations.
Industrial equipment suppliers using ResolvePay gain competitive advantages:
By providing guaranteed payment with immediate liquidity, ResolvePay enables suppliers to offer the net terms that buyers prefer while maintaining healthy cash flow.
ResolvePay's credit assessment capabilities combine AI models, behavioral signals, and human expertise to deliver comprehensive buyer evaluations. The proprietary system evaluates thousands of data points to make informed credit decisions.
The credit assessment platform analyzes:
This comprehensive approach enables credit decisions in 24 business hours for most transactions. For industrial equipment transactions up to $25,000, instant approvals are available, enabling immediate sales closure without financing delays.
ResolvePay's models are calibrated for industrial equipment transactions:
This industry-specific expertise ensures that credit decisions reflect the unique characteristics of industrial equipment sales.
Beyond credit assessment and advance payment, ResolvePay's platform automates the entire accounts receivable lifecycle, from invoice creation through payment reconciliation.
The automation workflow includes:
This comprehensive automation significantly reduces accounts receivable management time, freeing staff to focus on strategic activities rather than administrative tasks.
ResolvePay integrates directly into existing business infrastructure:
These integrations ensure that ResolvePay becomes a seamless extension of existing operations rather than requiring extensive process changes.
ResolvePay delivers a comprehensive solution that addresses the complete spectrum of challenges facing industrial equipment suppliers. The platform integrates embedded credit expertise, embedded invoice financing, and embedded payments into a single, streamlined system.
ResolvePay specifically serves industrial equipment suppliers through:
ResolvePay enables proactive growth by providing guaranteed payment on every approved transaction. This transforms net terms from a necessary accommodation into a strategic advantage that drives higher conversion rates and larger order values.
For industrial equipment suppliers navigating the balance between competitive payment terms and financial security, ResolvePay represents a modern integrated solution. The platform serves as your credit team, providing the expertise, infrastructure, and capital needed to grow B2B sales while protecting cash flow and managing risk.
ResolvePay provides guaranteed payment through non-recourse advance funding—up to 90-100% within 24 hours on approved invoices. This means the advance is yours to keep regardless of whether the customer ultimately pays. ResolvePay assumes the credit risk, providing immediate liquidity while protecting you from customer defaults. Every approved invoice from $1,000 to $1,000,000 receives full coverage, eliminating the credit risk exposure that comes with extending net terms.
ResolvePay uses proprietary AI models that evaluate thousands of buyer data points, combining real-time financial indicators, behavioral signals, and expert human review. The team includes specialists with backgrounds from leading technology and financial companies. For industrial equipment transactions up to $25,000, instant approvals are available. Larger transactions receive comprehensive credit decisions within 24 hours, incorporating alternative data sources and industry-specific risk factors specifically calibrated for high-value B2B transactions.
Yes, ResolvePay integrates directly with leading ERP and accounting platforms including QuickBooks, NetSuite, Oracle, and Sage Intacct. The platform uses flexible APIs and instant plug-ins to fit into your existing B2B ecommerce and accounting infrastructure. All transactions are automatically synced and reconciled in real-time, with AI-powered bookkeeping pushing transaction records directly to your accounting software. This eliminates manual data entry and ensures accurate financial reporting.
ResolvePay advances up to 90-100% of approved invoice values within 24 hours of approval. For industrial equipment transactions, this provides immediate liquidity to fund operations, purchase inventory, or invest in growth without waiting 30-90 days for customer payment. The 24-hour timeline applies to comprehensive credit decisions for high-value transactions, while purchases up to $25,000 may qualify for instant approvals with immediate funding availability.
Yes, ResolvePay manages the complete collections process through automated workflows. The platform uses AI agents to send professional payment reminders and handle follow-up communications, maintaining your brand relationship with customers. ResolvePay takes on billing, collections, and the risk of late payments or defaults, allowing you to focus on sales and operations. The white-label payment portal ensures customers interact with your brand while ResolvePay handles the operational complexity behind the scenes.
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.