Payment terms matter. For facilities procuring $10,000-$50,000 industrial air compressor systems, the difference between prepayment requirements and Net 30 invoice terms represents significant working capital impact.
Most eCommerce distributors require payment at checkout. Joruva offers Net 30 terms as standard — not as a special accommodation, but as recognition that industrial procurement operates differently than consumer purchases.
Here’s how payment terms affect total cost of ownership and why Net 30 matters for manufacturing operations.
What Are Net 30 Payment Terms?
Net 30 terms mean invoice payment is due 30 days after delivery. The facility receives equipment, verifies proper installation and operation, then pays via invoice rather than prepayment.
This structure aligns payment timing with equipment verification — facilities don’t pay until they’ve confirmed the system works as specified.
Comparison to Standard eCommerce Payment Requirements
| Payment Structure | When Payment Occurs | Risk Profile |
|---|---|---|
| Checkout Payment (Standard) | Before shipment | Buyer assumes all risk |
| 50% Deposit / 50% on Delivery | Partial prepayment | Shared risk |
| Net 30 Terms | 30 days after delivery | Supplier assumes delivery risk |
Net 30 terms shift payment timing to occur after installation verification rather than before shipment, reducing buyer risk while providing working capital flexibility.
Working Capital Impact
For facilities managing multiple capital purchases, payment term structure affects cash flow planning:
Scenario: $25,000 Air Compressor System Purchase
| Payment Terms | Cash Flow Impact | Working Capital Tied Up |
|---|---|---|
| Prepayment (checkout) | $25,000 leaves account immediately | $25,000 for 4-8 weeks (shipping + installation) |
| Net 30 | $25,000 available for 4-8 weeks | $0 during installation period |
Net 30 terms keep $25,000 available during the installation period, allowing facilities to maintain working capital for operational needs or other projects.
Why Most Distributors Don’t Offer Net 30
eCommerce distributors typically require payment at checkout for several operational reasons:
- Credit risk: Unknown buyers represent collection risk
- Operational complexity: Invoice processing requires accounting infrastructure
- Cash flow management: Distributors need immediate payment to manage their own vendor payments
- Return/dispute prevention: Prepayment reduces post-delivery disputes
These concerns are valid for consumer sales but create friction for B2B industrial procurement where invoice-based purchasing is standard.
How Joruva Offers Net 30 as Standard
Joruva’s direct manufacturer relationship eliminates intermediary payment coordination, allowing standard Net 30 terms without special credit applications:
- Order placed: Purchase order or online checkout
- Equipment ships: System ships from manufacturer
- Delivery and installation: Facility receives and installs equipment
- Invoice issued: Joruva issues invoice upon delivery confirmation
- Payment due: Net 30 from invoice date
No credit application. No special approval. Net 30 terms are standard for all commercial purchasers.
Enterprise Procurement Alignment
Fortune 500 procurement departments operate on invoice-based purchasing systems integrated with accounts payable automation. Requiring prepayment forces manual exception processes that create administrative friction.
Procurement Department Perspective
Standard enterprise procurement workflow:
- Purchase requisition approved
- Purchase order issued to vendor
- Goods received and verified
- Invoice matched to PO and receipt
- Payment processed through AP automation
Vendors requiring prepayment break this workflow, forcing:
- Manual payment processing outside standard AP systems
- Special approval for pre-delivery payment
- Additional documentation for audit trails
- Reconciliation complexity when invoices don’t match POs
For procurement departments managing hundreds of vendors, Net 30 terms eliminate this friction entirely.
Small Business Working Capital Benefits
Net 30 terms provide even greater relative benefit for smaller facilities with limited working capital:
Cash Flow Scenario: $15,000 Air Compressor + Oil-Water Separator
Small manufacturer with $50,000 operating cash:
| Payment Terms | Available Cash After Purchase | Impact on Operations |
|---|---|---|
| Prepayment | $35,000 | Reduced payroll/inventory buffer |
| Net 30 | $50,000 (for 30 days) | Full operational flexibility maintained |
For smaller facilities, the difference between prepayment and Net 30 can mean the difference between proceeding with equipment purchases or delaying them for cash flow reasons.
Installation Verification Window
Net 30 terms provide a natural verification period where facilities can confirm equipment performance before payment occurs:
- Physical inspection: Verify equipment condition upon delivery
- Installation completion: Ensure system installs properly
- Initial operation: Confirm equipment operates as specified
- Performance validation: Verify output meets requirements (CFM, discharge quality)
If issues arise during this verification period, they can be addressed before payment rather than requiring post-payment dispute resolution.
Accounts Payable Automation Integration
Modern AP automation systems (SAP Ariba, Coupa, Oracle ERP) require invoice-based purchasing to function properly. Prepayment requirements break automated matching workflows.
Net 30 terms allow facilities to:
- Issue POs through standard procurement systems
- Receive goods and create receipts in ERP
- Match invoices automatically against POs and receipts
- Process payments through existing AP automation
- Maintain complete audit trails for financial reporting
This integration becomes particularly important for publicly traded companies with Sarbanes-Oxley compliance requirements around procurement controls.
Comparison to Financing Options
Some distributors offer equipment financing as an alternative to prepayment. Understanding the cost difference between financing and Net 30 terms reveals the working capital advantage:
| Payment Approach | Effective Cost | Administrative Burden |
|---|---|---|
| Equipment Financing (5 years @ 8% APR) | $30,400 total for $25,000 equipment | Credit application, monthly payments |
| Net 30 Terms | $25,000 (no interest) | Standard invoice payment |
Net 30 terms provide working capital flexibility without the cost or complexity of formal financing arrangements.
Multi-Location Operations
For facilities managing compressed air systems across multiple locations, Net 30 terms simplify procurement coordination:
- Centralized purchasing: Corporate procurement can issue POs for multiple sites
- Consolidated invoicing: Single invoice for multiple location shipments
- Payment consolidation: One payment covers all locations
- Simplified accounting: Standard AP processes for all locations
Prepayment requirements force location-by-location payment coordination, increasing administrative burden.
The Complete Joruva Value Proposition
Net 30 terms are one component of Joruva’s enterprise-focused approach:
- Direct manufacturer relationship: No distributor markup
- Net 30 payment terms: Standard invoice-based purchasing
- Complete systems: Compressor + dryer + oil-water separator from single vendor
- Compliance partnership: Ongoing support beyond equipment sale
- 15-25% lower TCO: Direct pricing + extended service intervals
This combination addresses the operational reality of industrial procurement: facilities need equipment that works, terms that match their processes, and vendors who understand enterprise purchasing.
Next Steps
If your facility’s procurement process operates on purchase orders and invoice-based payment, you shouldn’t need to make exceptions for industrial equipment purchases.
Joruva offers Net 30 terms as standard for all commercial purchasers — no special applications, no financing complexity, no prepayment requirements.
Request a quote with Net 30 terms included, or call (602) 428-4236 to discuss your compressed air system requirements.
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