Industrial suppliers offering high-ticket orders with long payment terms (Net 60/90) face catastrophic risk where a single customer default can eliminate months of profit. Modern B2B net terms platforms like ResolvePay eliminate this risk entirely by paying suppliers upfront on every invoice while assuming 100% non-recourse credit risk, transforming extended payment terms from dangerous liability into competitive growth advantage.
Industrial suppliers operate in a uniquely precarious financial environment. Unlike retail or service businesses with daily transactions and immediate payments, industrial suppliers regularly process high-ticket orders ranging from $50,000 to $500,000+ with extended payment terms of Net 60 or Net 90 days. This combination creates a perfect storm of financial vulnerability.
Manufacturing businesses face the longest payment delays of any industry—47 days on average in the UK alone. Complex supply chains, multi-tiered supplier relationships, and project-based work all contribute to these extended payment cycles. For suppliers operating on thin profit margins (typically 4-10% net profit), this creates an unsustainable working capital gap where they must finance operations, purchase raw materials, and pay employees while waiting 2-3 months for customer payments.
The financial mathematics are brutal. Consider a supplier with a 4% net profit margin who experiences a $50,000 bad debt. To recover this loss, they must generate $1,250,000 in additional sales—a mathematical impossibility for most industrial suppliers. This single default can wipe out 6-12 months of accumulated profit, threatening business survival.
The risk environment is deteriorating rapidly. Manufacturing sector insolvencies increased 24% compared to 2022, while U.S. bankruptcy filings reached their highest levels since 2010. With 25% of corporate bankruptcies directly caused by customer default and insolvency, industrial suppliers can't afford to treat credit risk as a theoretical concern.
Trade credit insurance (TCI) has traditionally served as a primary risk management tool for industrial suppliers, protecting against financial losses when customers fail to pay due to insolvency, bankruptcy, or protracted default. The global TCI market was valued at $11.67 billion in 2024 and is projected to grow at 9.4% CAGR through 2032, driven by rising payment defaults and global trade volatility.
TCI policies typically cover 85-90% of invoice value after confirmed customer defaults. Insurers assess buyer creditworthiness, set credit limits for each customer, and provide real-time monitoring of customer financial health. When defaults occur, suppliers file claims documenting the unpaid invoices and proof of customer insolvency.
These policies serve an important role in the B2B risk management landscape, helping businesses protect against catastrophic losses from customer insolvency. For companies with diversified customer bases and moderate risk exposure, traditional trade credit insurance can provide valuable peace of mind through comprehensive credit monitoring and professional claims management services.
Traditional TCI operates on a reimbursement model where suppliers pay premiums upfront for coverage that activates after defaults occur. Policies typically include deductibles and waiting periods before claims can be filed, and coverage generally reimburses 85-90% of validated losses.
The model focuses primarily on risk transfer rather than working capital optimization. Suppliers continue to manage their own accounts receivable, maintain customer payment terms, and handle collections processes until defaults are confirmed and claims can be processed.
ResolvePay's approach addresses both credit risk and working capital challenges simultaneously through 100% non-recourse financing. Instead of waiting for potential reimbursement after defaults occur, ResolvePay pays suppliers upfront on every approved invoice while assuming 100% of the credit risk.
This paradigm shift transforms payment terms from potential liability into competitive advantage. Rather than defensively protecting against downside risk, suppliers can proactively use flexible payment terms to drive sales growth, increase average order values, and build customer loyalty—all while maintaining immediate cash access and zero bad debt exposure.
ResolvePay combines several capabilities into a single platform:
For industrial suppliers operating in today's volatile economic environment—with 40% increase in insolvencies—this proactive approach provides both protection and growth enablement.
ResolvePay's core innovation is its ability to pay industrial suppliers upfront on every approved invoice while assuming 100% non-recourse credit risk. This eliminates the working capital gap that has traditionally constrained industrial suppliers from accepting large orders or offering competitive payment terms.
When an industrial supplier receives an order with Net 60 or Net 90 terms, ResolvePay's process works as follows:
This process transforms the supplier's cash conversion cycle from 60-90 days to just 1 day, providing immediate liquidity to fund operations, purchase inventory, and accept larger orders without cash flow constraints.
ResolvePay offers competitive pricing with transparent fee structures and no hidden charges. Unlike some financing solutions with complex fee calculations, ResolvePay provides clear, upfront pricing that makes financial planning straightforward for industrial suppliers.
One of ResolvePay's most powerful benefits is enabling industrial suppliers to offer flexible payment terms that drive sales growth without creating financial strain or default risk. 85% of B2B buyers prefer purchasing on payment terms, making competitive terms essential for winning business in today's market.
ResolvePay enables suppliers to offer various payment terms tailored to customer needs:
These flexible terms aren't just competitive advantages—they're growth accelerators. Suppliers offering BNPL can see average order value increases of around 40% and 20-30% conversion rate improvements by offering terms that remove purchasing barriers.
The ability to offer competitive payment terms without financial risk transforms sales conversations. Instead of declining large orders due to cash flow constraints or default anxiety, suppliers can confidently accept orders knowing they'll receive immediate payment.
Industrial suppliers using ResolvePay have achieved impressive results:
For industrial suppliers competing in crowded markets, the ability to offer flexible payment terms without financial risk becomes a decisive competitive advantage that drives both new customer acquisition and existing customer retention.
Traditional credit assessment relies heavily on credit bureau data that may be outdated, incomplete, or irrelevant for B2B transactions. ResolvePay's proprietary AI-powered platform goes beyond traditional bureaus by combining multiple data sources and advanced analytics to deliver deeper, more accurate credit insights.
ResolvePay's credit assessment combines:
This multi-layered approach delivers instant credit decisions that are more accurate and comprehensive than traditional bureau-based assessments. For industrial suppliers, this means higher approval rates for qualified buyers and better risk identification.
Unlike traditional credit applications that require extensive financial documentation, ResolvePay's verification process is completely discreet. Suppliers only need to provide the customer's business name and address—ResolvePay handles all credit checks without any customer interaction.
This "quiet pre-approval" process maintains professional customer relationships while providing comprehensive credit protection. Industrial suppliers can extend credit confidently without making customers feel scrutinized or burdened by paperwork.
For qualified buyers, ResolvePay offers instant approvals for purchases up to $25,000, enabling seamless checkout experiences that drive conversion. For larger industrial orders, the credit decision process typically completes within 24 business hours—dramatically faster than traditional credit applications that can take weeks.
Beyond upfront payment and credit risk elimination, ResolvePay transforms the entire accounts receivable process through AI-powered automation. Industrial suppliers traditionally spend enormous resources on manual AR tasks—credit checks, invoice processing, payment reminders, collections, and reconciliation.
ResolvePay's platform automates the entire AR lifecycle:
This automation significantly reduces AR management workload, freeing accounting teams to focus on strategic financial planning rather than manual collections.
ResolvePay integrates seamlessly with leading ERP, accounting, and commerce platforms including QuickBooks, Oracle, Shopify, BigCommerce, and Magento. The platform's flexible APIs enable integration with any custom system, ensuring smooth data flow without manual entry or reconciliation errors.
Key integration benefits include:
ResolvePay's white-label payment portal maintains the supplier's brand identity while offering customers multiple payment options including ACH, credit card, wire transfer, and check. This professional payment experience enhances customer satisfaction while ensuring consistent brand presentation.
The portal's self-service capabilities empower customers to view invoices, make payments, and manage their accounts independently, reducing support inquiries and improving payment timeliness.
For industrial suppliers navigating today's volatile economic environment, ResolvePay offers more than just credit risk protection—it provides a comprehensive platform that transforms payment terms from potential liability into powerful competitive advantage. By combining immediate working capital access, complete credit risk elimination, and AI-powered AR automation, ResolvePay enables industrial suppliers to confidently offer the flexible payment terms that B2B buyers demand while maintaining healthy cash flow and zero bad debt exposure.
The platform's 100% non-recourse financing ensures suppliers receive payment within 24 hours on every approved invoice, while buyers enjoy the extended payment terms they need to manage their own cash flow effectively. This win-win approach drives measurable business results: increased order values, higher conversion rates, expanded customer bases, and dramatically reduced administrative burden.
Industrial suppliers ready to move beyond defensive risk management to proactive growth enablement can leverage ResolvePay's technology, capital, and expertise to unlock new levels of business performance.
ResolvePay eliminates default risk through 100% non-recourse financing that pays suppliers upfront on every approved invoice while assuming 100% of the credit risk. This means suppliers keep all advance payments regardless of whether customers ever pay, providing complete protection against bad debt exposure.
Yes, ResolvePay enables industrial suppliers to offer Net 30, 60, or 90 day terms while receiving payment within 24 hours. This transforms extended payment terms from cash flow constraint into competitive advantage, allowing suppliers to meet customer payment expectations without sacrificing their own working capital.
ResolvePay pays suppliers within 24 hours of invoice approval, compared to traditional 60-90 day payment cycles. For qualified buyers, credit decisions can be instant, enabling immediate payment processing for approved orders.
ResolvePay requires $1M+ annual B2B revenue, making it ideal for established industrial suppliers with significant B2B operations. The platform is specifically designed for businesses processing high-ticket orders with extended payment terms.
Yes, ResolvePay automates the entire collections process, including payment reminders, late payment follow-ups, and collections management. This significantly reduces AR workload while maintaining professional customer relationships through white-label communication.
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.