Veritiv Payment Terms: How They Work and How to Offer Them

Large B2B distributors like Veritiv may extend payment terms to approved business customers. Veritiv's published Terms of Sale state that all orders are subject to approval by its Credit Department and that invoice payment is due according to the payment terms approved for the buyer. For manufacturers, wholesalers, and distributors looking to compete at this level, understanding how net terms work is essential. With Net 30 being the most widely used payment term across B2B industries and businesses reporting a 40% increase in average order value when offering net terms, mastering this financing model can support stronger sales performance while maintaining healthy cash flow.

Key Takeaways

• Net 30 payment terms represent the B2B standard, with roughly 45% of all B2B invoices using this 30-day payment window across manufacturing, wholesale, and distribution sectors
• Early payment discounts like 2/10 Net 30 can deliver substantial annualized returns for buyers who capture them, making them powerful incentives for faster payment
• Traditional in-house net terms management can require substantial administrative work, including invoice tracking, credit checks, payment follow-ups, and collections.
• Manual credit approval processes take 1-2 weeks per new customer, while AI-powered platforms reduce this to under 24 hours
• Resolve can advance up to 90% of approved invoice value, with funds generally reaching sellers within 1-2 business days, eliminating the cash flow gap that traditional payment terms create
• Non-recourse financing transfers credit risk from sellers to financing providers, protecting against customer defaults on approved invoices
• Resolve Pay customer Trenchless Supply reported that the work required from its team decreased by at least 90% after implementing Resolve Pay, illustrating how AR automation can significantly reduce manual workload.

Understanding Veritiv's Standard Payment Terms

Veritiv Corporation operates as one of North America's largest packaging distributors and business-to-business solutions providers. Like most major B2B distributors in this space, Veritiv typically offers payment terms to qualified business customers, allowing them to receive products and pay within an agreed timeframe rather than requiring immediate payment at delivery.

What Are Common B2B Payment Terms?

Payment terms define when and how buyers must pay for goods or services received. In B2B commerce, the most prevalent structures include:

• Net 30: Payment due within 30 calendar days of the invoice date
• Net 60: Payment due within 60 calendar days
• Net 90: Extended payment window of 90 calendar days
• 2/10 Net 30: A 2% discount offered if paid within 10 days, with the full amount due in 30 days
• Due on Receipt: Immediate payment required upon delivery
• End of Month (EOM): Payment due at the end of the month in which the invoice is issued

Net 30 has emerged as the dominant standard because it balances seller cash flow requirements with buyer processing capabilities. The 30-day window gives purchasers sufficient time to process invoices through their accounts payable systems while ensuring sellers receive payment within a reasonable timeframe.

How Do Veritiv's Terms Compare?

Veritiv states that all orders are subject to approval by its Credit Department, which determines the payment terms applicable to each buyer. Veritiv also reserves the right to revise credit limits or payment terms, withhold shipments when it has concerns about a buyer's ability to pay, and require deposits or prepayments for equipment purchases.

This approach reflects standard practice among major distributors, where credit evaluation helps manage risk while building relationships with new customers. For businesses looking to offer similar competitive terms to their own buyers, understanding this model provides a foundation for structuring your own trade credit programs.

The Mechanics of Net 30 Terms: A Deep Dive

Net 30 payment terms mean the buyer has 30 calendar days from the invoice date to submit full payment. This seemingly simple arrangement creates a complex interplay between buyer purchasing power and seller cash flow management.

How Does Net 30 Impact Cash Flow?

When you offer Net 30 terms, you deliver products or services immediately but wait up to a month for payment. This creates what financial professionals call a "cash conversion gap" where your working capital sits tied up in accounts receivable rather than fueling operations.

The impact compounds as your business scales:

• Week 1: You ship $50,000 in orders with Net 30 terms
• Week 2: Another $50,000 ships
• Week 3-4: Orders continue, AR balance grows
• Day 30+: First payments begin arriving, but new orders create continuous AR balance

Meanwhile, your operational expenses continue without pause. Payroll, supplier invoices, rent, and utilities all demand immediate payment regardless of when your customers pay you. This structural mismatch explains why so many growing B2B companies struggle with cash flow despite strong sales.

Benefits and Considerations for Buyers and Sellers

For Buyers:

• Access to products without immediate cash outlay
• Time to process and approve invoices through proper channels
• Opportunity to align payments with their own receivables cycles
• Potential early payment discounts representing substantial annualized returns

For Sellers:

• Competitive advantage over suppliers requiring upfront payment
• Higher average order values from buyers with increased purchasing flexibility
• Stronger customer relationships and loyalty
• Increased market reach to cash-constrained businesses

Key Considerations:

• Cash flow timing requires careful management
• Credit evaluation and monitoring demand ongoing attention
• Administrative processes for tracking invoices and payments
• Clear policies for handling invoice disputes or delivery issues

Why Traditional Net 30 Can Be a Challenge for Sellers

While offering net terms drives sales growth, traditional in-house management of these programs creates operational and financial considerations that businesses must address as they scale.

Impact on Working Capital and Growth

The cash flow gap created by net terms directly affects growth capacity. Consider a manufacturer with $2 million in monthly sales on Net 30 terms. At any given time, they carry roughly $2 million in outstanding receivables, representing working capital they cannot deploy for:

• Purchasing raw materials for larger orders
• Hiring additional staff to meet demand
• Investing in equipment or facility expansion
• Taking advantage of supplier volume discounts
• Building inventory for seasonal demand spikes

This constraint becomes more acute during growth phases. Winning a major new account that orders $500,000 monthly on Net 60 terms requires $1 million in additional working capital just to support that single relationship.

The Administrative Requirements of Managing Extended Terms

Managing net terms in-house generates significant administrative work:

Credit Analysis Requirements:

• Reviewing credit applications for each new customer
• Calling trade references and verifying business information
• Setting and adjusting credit limits based on payment history
• Monitoring credit reports for existing customers

Accounts Receivable Administration:

• Generating and sending invoices
• Tracking payment due dates across hundreds of customers
• Sending payment reminders at appropriate intervals
• Reconciling payments to invoices
• Investigating and resolving discrepancies

Collections Management:

• Following up on overdue accounts
• Negotiating payment arrangements
• Escalating when necessary
• Managing accounts receivable aging

Resolve Pay customer Trenchless Supply reported that the work required from its team decreased by at least 90% after Resolve Pay automated a two-way integration, showing how automation can substantially reduce manual AR work.

Leveraging Trade Credit to Boost Sales and Buyer Loyalty

Despite the challenges, offering trade credit remains one of the most powerful tools for B2B growth. Understanding how to leverage this capability strategically can transform payment terms from a cost center into a competitive advantage.

How Offering Credit Terms Increases Customer Lifetime Value

Business owners who offer net terms consistently outperform competitors who demand immediate payment. This advantage stems from several factors:

Expanded Market Reach: Many potential customers face their own cash flow constraints. Requiring prepayment eliminates these buyers from your addressable market entirely. Flexible terms allow you to serve businesses that would otherwise purchase from competitors.

Larger Order Sizes: When buyers aren't constrained by immediate cash availability, they tend to purchase in larger quantities. The 40% increase in average order value that businesses report when offering net terms directly impacts revenue without requiring additional customer acquisition.

Reduced Price Sensitivity: Customers receiving favorable payment terms often prioritize supplier reliability over the lowest possible price. This reduces competitive pressure on margins while building stronger relationships.

Repeat Purchase Patterns: Established credit relationships create natural retention. Buyers with approved credit limits and payment history with your company experience smoother transactions, increasing loyalty.

Examples of Trade Credit in B2B Transactions

Trade credit manifests differently across industries based on transaction patterns and operational requirements:

Manufacturing and Distribution:

• Net 30 standard for most transactions
• Net 60 for larger orders or established accounts
• 2/10 Net 30 discounts to accelerate cash collection
• Seasonal extended terms for inventory buildup periods

Construction and Contracting:

• Net 60-90 common due to project payment cycles
• Progress billing tied to project milestones
• Retention amounts held until project completion
• Back-to-back terms matching customer payment schedules

Food Service and Perishables:

• Net 7-15 due to product turnover requirements
• Weekly payment cycles common
• Volume-based credit limits
• Timely enforcement due to perishability

Understanding industry norms helps you position your terms competitively while managing cash flow effectively.

Mitigating Risk: The Role of Trade Credit Insurance and Alternatives

Extending credit to business customers inevitably means accepting some level of default risk. Managing this risk effectively determines whether your net terms program generates profitable growth.

When Is Trade Credit Insurance Necessary?

Trade credit insurance protects sellers against customer defaults by reimbursing a percentage of unpaid invoices. This coverage makes sense when:

• Your customer concentration creates significant exposure to any single buyer
• You're entering new markets with unfamiliar credit profiles
• Economic conditions suggest elevated default risk
• Your margins require protection against significant write-offs
• You're using receivables as collateral for financing

Traditional trade credit insurance provides valuable protection but requires premium costs, claims processes, and ongoing monitoring to maintain coverage.

Exploring Non-Recourse Financing as a Risk Management Strategy

Non-recourse financing offers an alternative approach where the financing provider assumes default risk rather than the seller. Unlike traditional factoring with recourse provisions, non-recourse arrangements mean that if an approved buyer fails to pay, the seller keeps the advance without repayment obligation.

This model fundamentally changes the risk equation:

Traditional Net Terms:

• Seller delivers goods
• Buyer has 30-90 days to pay
• Seller bears 100% of default risk
• Seller must fund operations during payment gap

Non-Recourse Net Terms Financing:

• Seller delivers goods
• Financing partner advances payment within 1-2 days
• Buyer pays on original terms (Net 30/60/90)
• Financing partner assumes default risk on approved invoices

For businesses seeking to offer competitive terms without accepting substantial credit risk, non-recourse financing provides a structural solution. The factoring alternative model has evolved significantly, with modern platforms offering higher advance rates and faster funding.

Streamlining Accounts Receivable with Automation

Manual AR management becomes increasingly challenging as transaction volumes grow. Accounts receivable automation transforms these processes from labor-intensive tasks into efficient, scalable operations.

Key Features of Modern AR Automation Platforms

Effective AR automation addresses the full invoice-to-cash cycle:

Invoice Generation and Delivery:

• Automatic invoice creation from order data
• Multi-channel delivery (email, portal, EDI)
• Branded templates maintaining professional appearance
• Integration with ERP and accounting systems

Payment Tracking and Reconciliation:

• Real-time visibility into invoice status
• Automatic matching of payments to invoices
• Exception flagging for discrepancies
• Cash application without manual intervention

Reporting and Analytics:

• Days Sales Outstanding (DSO) tracking
• Aging reports by customer and segment
• Cash flow forecasting based on historical patterns
• Customer payment behavior analysis

Integration Capabilities:

• Two-way sync with QuickBooks, Xero, NetSuite, Sage Intacct
• API connections for custom systems
• Automatic data flow eliminating duplicate entry
• Real-time updates across platforms

Reducing Manual Effort in Collections

Automated collection workflows replace manual follow-up with systematic, consistent communication:

• Day 1: Invoice delivered with payment instructions
• Day 21: Friendly payment reminder before due date
• Day 30: Due date notification with payment link
• Day 37: First overdue notice
• Day 45: Second notice with escalation
• Day 60+: Dedicated collections process

This systematic approach ensures no invoice falls through the cracks while maintaining professional relationships. Automated systems pause when payments or disputes are received, preventing embarrassing duplicate contacts.

The efficiency gains are substantial. Businesses implementing AR automation report reducing manual AR workload by up to 90%, freeing staff for higher-value activities while improving collection rates.

Accelerating Cash Flow: Beyond Traditional Accounts Receivable Financing

When net terms create cash flow gaps, businesses traditionally turn to financing solutions that convert receivables into immediate working capital. Understanding your options helps identify the best fit for your situation.

How Invoice Factoring Works

Traditional invoice factoring involves selling your receivables to a factoring company at a discount:

1. You invoice your customer on net terms
2. The factor purchases the invoice, typically advancing a percentage of face value
3. Your customer pays the factor directly on the due date
4. The factor releases the remaining balance minus their fees

While factoring provides faster access to cash, it comes with considerations:

• Advance rates: Typically range from 70-95% of invoice value
• Factoring costs: Factoring arrangements may include fees that reduce the amount the seller ultimately receives
• Recourse provisions: Many factors require repayment if customers default
• Customer relationships: Direct factor contact may concern some buyers
• Notification requirements: Customers often must be informed of the arrangement

The Benefits of Faster Funding for B2B Sellers

Modern net terms financing platforms have evolved beyond traditional factoring by combining faster access to working capital with credit and accounts receivable workflows.

Higher Advance Availability: Resolve Pay can advance up to 90% on approved net terms invoices, depending on the applicable transaction and buyer approval.

Faster Funding: Resolve Pay states that approved invoice advances are generally delivered within 1-2 business days, while some product workflows provide funding within 24 hours.

Non-Recourse Protection: Unlike recourse factoring where you repay if customers default, non-recourse financing means the platform absorbs credit losses on approved invoices.

White-Label Experience: Modern platforms maintain your branding throughout the customer experience, unlike factors who may contact customers directly.

Integrated Operations: Rather than separate factoring relationships, integrated platforms combine credit decisioning, payment processing, and AR management in unified solutions.

For businesses evaluating AR financing options, these evolved capabilities represent a significant advancement from traditional factoring models.

Smart Credit Underwriting: AI-Powered Approvals for Business Buyers

The speed and accuracy of credit decisions directly impact your ability to convert prospects into customers and grow wallet share with existing accounts. Traditional manual underwriting creates bottlenecks that AI-powered systems eliminate.

How AI Transforms B2B Credit Decisions

Manual credit evaluation requires analysts to gather information from multiple sources:

• Business credit reports from bureaus
• Bank and trade references
• Financial statements and tax returns
• Public records searches
• Industry risk assessments

This process takes 1-2 weeks per new customer, creating friction that can lose sales to faster competitors. Buyers waiting for credit approval may purchase from alternatives offering immediate terms.

AI-powered credit engines compress this timeline dramatically by:

• Aggregating data from thousands of sources automatically
• Analyzing payment patterns, cash flow trends, and behavioral signals
• Generating risk scores in minutes rather than days
• Providing consistent, objective evaluations at scale

Modern platforms deliver credit decisions in under 24 hours, with many approvals completing in minutes for straightforward applications. This speed transforms credit from a sales obstacle into a competitive advantage.

Setting Flexible Credit Limits with Confidence

Static credit limits based on point-in-time evaluations fail to capture evolving customer relationships. Dynamic credit management adjusts limits based on actual behavior:

Positive Signals:

• Consistent on-time payments
• Growing order volumes
• Improved financial indicators
• Longer relationship tenure

Warning Signals:

• Payment pattern deterioration
• Declining order frequency
• Negative credit report changes
• Industry-wide stress indicators

AI systems monitor these signals continuously, recommending limit adjustments before problems develop rather than reacting after issues occur. This proactive approach maximizes sales opportunities with creditworthy customers while managing emerging risks.

Optimizing Collections: Agentic Approaches and Customer Retention

Collections represent a delicate balance. Professional tactics recover cash while maintaining relationships and brand reputation. Modern agentic collections systems find the optimal path.

Balancing Collections Efficiency with Customer Experience

Effective collections recognize that most late payments stem from operational issues rather than intent to avoid payment:

• Invoices lost in email or mail
• Approval bottlenecks in buyer organizations
• Disputed items requiring resolution
• Cash flow timing mismatches
• System integration failures

Professional collection approaches address these root causes:

Early Communication: Reaching out before due dates catches issues while easy to resolve. A friendly reminder about an upcoming payment often prompts action before invoices become overdue.

Multiple Channels: Some buyers respond to email, others to SMS, others to phone calls. Multi-channel outreach increases contact rates without requiring escalation.

Clear Resolution Paths: Providing easy options to pay, dispute, or request extensions reduces friction. Online portals with streamlined payment eliminate excuses.

Consistent Follow-Up: Regular, predictable communication patterns train buyers to expect contact and prioritize payment. Consistent collection efforts support healthy payment behavior.

The Role of AI in Effective Debt Recovery

AI-powered collection systems bring capabilities impossible to replicate manually:

Intelligent Sequencing: Rather than fixed schedules, AI determines optimal contact timing based on buyer behavior patterns, industry norms, and historical response data.

Personalized Messaging: Templates adapt based on relationship history, payment patterns, and communication preferences. Long-term customers receive different treatment than first-time late payers.

Voice AI Capabilities: Automated outbound calls handle routine follow-up at scale, freeing human collectors for complex negotiations. Natural language processing enables conversational interactions.

Automatic Pause Logic: Systems recognize when payments are received, disputes are logged, or customer service issues are flagged, automatically pausing collection activity to prevent duplicate contacts.

These capabilities explain why modern platforms reduce DSO while maintaining customer relationships.

Enhancing the Buyer Payment Experience with Branded Portals

The payment experience shapes buyer perception of your business. Streamlined, branded portals eliminate barriers that delay payment and frustrate customers.

The Importance of a Seamless B2B Checkout Experience

Buyer expectations have evolved significantly. Customers who experience convenient checkout in their personal lives expect similar ease in business transactions. Meeting these expectations requires:

Single Sign-On Access: One login provides access to all invoice, payment, and credit information without navigating multiple systems.

Mobile-Responsive Design: Buyers reviewing invoices on phones during commutes or job sites need interfaces that work on any device.

Real-Time Information: Current balances, payment history, and credit availability displayed without delay or manual updates.

Self-Service Capabilities: Options to make payments, request payment plans, flag disputes, and download statements without requiring phone calls or emails.

White-label payment portals maintain your branding throughout this experience, reinforcing your relationship.

Offering Flexible Payment Methods

B2B buyers have varying preferences and constraints around payment methods. Accommodating these preferences accelerates collections:

ACH Transfers: Low-cost option preferred for recurring payments. Direct bank transfers avoid card fees while providing reliable settlement.

Wire Transfers: Necessary for large transactions or international payments. Guaranteed funds offset higher fees.

Credit Cards: Some buyers prefer cards for points, expense tracking, or cash flow management.

Check Processing: Legacy systems still require check acceptance for some buyers. Digital processing accelerates clearing times.

Payment Plans: Options to split large invoices over multiple installments capture sales that might otherwise be constrained by budget timing.

Providing these options within a unified portal simplifies buyer decisions while maximizing your collection rate regardless of their preferred payment method.

Transform Your B2B Payment Terms with Resolve Pay

Resolve Pay combines payment terms, credit risk management, AR automation, and collections in one platform built for B2B sellers.

Core Capabilities

• Net terms financing with non-recourse protection: Offer Net 30, 60, or 90 terms to qualified buyers while receiving advances within 1-2 business days. Resolve assumes applicable credit risk on approved customers, subject to program terms.
• AI-powered credit engine: Evaluates thousands of buyer data points and can deliver decisions in under 24 hours. Quiet credit checks help preserve the sales relationship.
• Automated AR management: Automates invoicing, reminders, reconciliation, and bookkeeping sync, with integrations including QuickBooks, Xero, NetSuite, and Sage Intacct.
• Agentic collections: Uses email, SMS, and voice AI with intelligent escalation, automatically pausing when payments or disputes are received.
• White-label payment portal: Maintains your brand while supporting ACH, wire, credit card, check, and self-service payments.

Customer Results

• Archipelago Lighting tripled revenue and reduced net terms approval time from 10 days to 24 hours.
• Trenchless Supply reduced AR workload by 90%, with credit approvals in under 24 hours.
• ConEquip achieved 30% year-over-year growth.
• Shields Childcare Supplies won new business by offering Net 90 terms it could not extend independently.

For manufacturers, distributors, and wholesalers, Resolve provides the infrastructure to offer competitive terms without taking on the same cash flow strain and credit risk. Resolve originated as a B2B payments spinout from Affirm, has raised $60 million, serves more than 15,000 businesses, and states that it is SOC 2 Type II attested.

Frequently Asked Questions

What are the most common payment terms in B2B transactions?

Net 30 represents the dominant standard in B2B commerce. This 30-day payment window balances buyer processing needs with seller cash flow requirements. Other common structures include Net 60 and Net 90 for larger transactions, 2/10 Net 30 offering early payment discounts, and industry-specific variations.

How does offering net payment terms benefit sellers?

Businesses that offer flexible payment terms consistently outperform competitors requiring immediate payment. Primary benefits include a 40% increase in average order value as buyers purchase more when not constrained by immediate cash requirements, expanded market reach to buyers who cannot prepay, stronger customer relationships, and competitive differentiation.

What are the main risks of offering extended payment terms?

The primary considerations include cash flow gaps where you deliver goods immediately but wait 30-90 days for payment while operational expenses continue, credit default risk if customers fail to pay, administrative overhead managing invoices and collections, and opportunity cost of working capital tied up in receivables rather than fueling growth.

How can businesses offer net terms without impacting cash flow?

Modern net terms financing platforms allow sellers to offer Net 30/60/90 terms to buyers while receiving payment advances within 1-2 business days. The financing provider pays you immediately and collects from the buyer on the original terms. Non-recourse arrangements mean the financing provider bears the credit risk if approved buyers default.

What is the difference between invoice factoring and non-recourse financing?

Traditional invoice factoring typically advances a percentage of invoice value with recourse provisions, meaning you repay if customers default. Non-recourse financing can advance up to 90% of invoice value without recourse, meaning the financing provider absorbs credit losses on approved invoices. Modern platforms also provide faster funding and integrated AR management capabilities.

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.