A Marysville, OH supplier waiting on net-60 invoices can cover payroll with a working capital loan, a set amount repaid over a fixed term, or with a line of credit drawn for the weeks between shipping and payment. The worked example shows how many paydays a 60-day wait holds and what each option costs; a funding partner sets any real terms.
A 60-day wait on customer invoices can hold four or five biweekly paydays, and materials are paid for before the customer pays. A working capital loan suits a one-time gap; a line of credit suits a gap that comes back with every order. A customer's payment history, shown invoice by invoice, is what a funding partner can read.
Why supplier invoices can sit for 60 days or longer
Net-60 means the customer agreed to pay 60 days after the invoice date, not 60 days after the parts left the dock. Invoices can sit longer than that for ordinary reasons: the customer pays on a fixed weekly run, an invoice waits for a receiving report to match it, a price on the invoice differs from the purchase order, or the customer's own cash is tight. Each of those adds days the supplier carries.
Illustration only, invented figures: a supplier ships $46,800 of parts a month on net-60 terms and runs a biweekly payroll of $11,350. In this example, 4 or 5 paydays fall inside each 60-day wait, depending on where the first one lands, so $45,400 or $56,750 in wages goes out before that month's invoices are paid.
Wholesale trade (NAICS 42) counted 82 establishments across Union County, OH in the 2023 County Business Patterns. Separately, the 2023 ZIP Code Business Patterns counted 20 wholesale trade establishments in ZIP 43040.
Working capital loan vs a credit line for the gap
Both products cover the same gap in different ways. A working capital loan pays out a set amount once and is repaid in fixed installments over a set term, which fits a gap that happens once, such as a large first order. A line of credit sets a limit the business draws against and pays back as invoices are paid, with interest only on what is drawn, which fits a gap that comes back with every order.
Illustration only, invented figures: the supplier needs $38,000 to bridge one 60-day wait.
| Option | How it is repaid | Interest in this example |
|---|---|---|
| Working capital loan, $38,000, 6 months, rate 13.6% | 6 payments of $6,586.91 | $1,521.46 |
| Line of credit draw, $38,000, 60 days, rate 11.5% | Paid back in one sum when the invoices clear | $718.36 |
In this example the line draw costs $803.10 less in interest because it is repaid as soon as the customer pays, while the loan runs its full term. A line can carry other costs and a review at renewal, so those belong in the comparison too.
The choice turns on how frequently the gap appears. A supplier that waits on the same customer every month is bridging the same hole twelve times a year, and a limit that refills as each invoice clears matches that pattern. A supplier facing one oversized order, or a new customer with a longer first cycle, has a gap with a start and an end date, and a loan with a fixed payoff matches that instead. Some businesses use both: the loan for the one-time step up, the line for the monthly rhythm after it.
Steel, resin and packaging bought before the customer pays
Materials are paid for before the customer pays. A supplier buys steel, resin and packaging from its own vendors on their terms, makes and ships the parts, and only then starts the 60-day clock with its customer.
Illustration only, invented figures: steel at $12,900, resin at $5,600 and packaging at $2,900 make a $21,400 materials order, paid 30 days after delivery. The parts ship 14 days after the materials arrive, and the customer pays 60 days after shipping. In this example, the supplier has paid for the materials 44 days before the customer pays for the parts.
- A larger order means a larger materials bill on the same dates
- A vendor that asks for payment on delivery widens the gap
- Scrap and rework add material cost without adding invoices
- A customer that moves a release date holds both the parts and the cash
The manufacturing industry page has the Union County, OH counts for the sector, and the supplier machinery article covers wages during a new part ramp.
Showing a funder the customer payment history
A funding partner can look at how the business's customers actually pay, not only at the terms printed on the invoice. A list of recent invoices with the days each took to clear answers that directly.
| Invoice month | Days to pay |
|---|---|
| March | 58 |
| April | 63 |
| May | 61 |
| June | 67 |
| July | 72 |
| August | 60 |
In this example the customer took 63.5 days on average, and 4 of the 6 invoices ran past 60 days. A request sized on 60 days would have come up short in those months. Papers that show the same thing for a real business:
- An accounts receivable aging report, by customer
- Copies of the purchase orders behind the open invoices
- Business bank statements with the customer deposits marked
- Any supply agreement that states the payment terms
One late month is a delay; a customer that pays a little later every month is a trend, and it is better raised on the first call than found during the review. The same history also shows which customers pay on time, which is the part of the receivables a partner can lean on.
By Reedshore Credit · Updated
