Underwriting review: Fundo Underwriting Team
Last updated: October 2026
Yes. Net 30 supplier terms can let approved contractors buy materials now and pay the bill within 30 days of the agreed start date. This helps when cash arrives before the bill is due. If your customer pays later, a gap remains. Fundo offers Revenue-Based Financing for business needs; it does not set or extend your supplier’s payment terms.
Two invoices can both say “net 30” and still leave you short. Their clocks may start on different days.
What does net 30 financing mean?
Net 30 financing usually refers to trade credit. A supplier lets you buy on account. The full bill is due within 30 days, often from the invoice date. Always check the written terms for the start date and due date.
With trade credit financing, you get more time to pay for goods. It does not put cash in your bank account. Nor does it give you an extra 30 days each time you make a small payment.
You could pick up pipe or roofing supplies today and keep cash on hand for wages. However, the supplier still needs to be paid on time.
Why can two net 30 agreements leave a 20-day gap?
Picture a painting contractor with a $2,400 supply order. The supplier bills on day 0, with payment due on day 30. Work ends on day 20. The contractor then bills the client on net 30 terms.
Here is how those dates line up:
| Day | What happens | Cash impact |
|---|---|---|
| 0 | Contractor picks up supplies; supplier issues the bill | $2,400 owed, due on day 30 |
| 20 | Work ends; contractor sends the customer an invoice | Client payment due on day 50 |
| 30 | Supplier bill falls due | Contractor needs $2,400 now |
| 50 | Client pays on the agreed date | Job funds arrive 20 days after the supplier’s due date |
This is a sample timeline, not a Fundo client case or funding offer.
The customer is not late. The two payment schedules simply do not match.
Without a deposit or other available cash, the contractor must cover that $2,400 for 20 days. Labor and other bills may add to the need.
For the full job budget, see our guide to funding a new contract before getting paid.
Read more than the “30” in supplier payment terms
The due date is only part of the deal. Before you rely on net 30 accounts, ask these three questions.
“What starts the clock?”
Ask whether the term starts when the supplier issues the invoice, ships the goods, or hands them over. Do not assume it starts when work begins on-site.
Also, check if each order has its own due date. A monthly statement may list several bills. That does not mean each due date has changed.
Then check your client contract. Does your right to bill start when work ends, after a site check, or after written sign-off? That detail can shift the date cash reaches you.
“What is the full price if I wait?”
Ask about account fees, late charges, and any lower price for paying early. Net 30 alone does not tell you whether there are fees.
For example, 2/10 net 30 generally offers a 2% discount if you pay within 10 days. Otherwise, the full amount is due within 30 days, based on the stated terms.
On a $2,000 bill that qualifies, that discount is $40. Paying early would mean paying $1,960. Compare the saving with your need to keep cash for wages and other bills.
“How much of my limit can I use today?”
An account limit and available credit are not the same. If your limit is $5,000 and you already owe $3,500, you have at most $1,500 left before other holds or limits.
Also ask if tax and freight count toward the limit. A purchase that looks small enough may exceed it once those costs are added.
If the account will not cover the order, compare other ways contractors can finance materials before a job starts.
When are supplier terms enough on their own?
Net 30 may be enough if the account covers the goods and you have a sound plan to pay by the due date. That cash could come from a deposit, a stage payment, or other business receipts.
However, leave room for a delay. A payment expected on the same day your supplier bill is due leaves little time for funds to clear or a bill to be fixed.
If the dates do not work, ask to change them before you buy. You could also place a smaller first order. Get any change in writing. Do not build the plan around extra time the supplier has not agreed to.
Where does Fundo fit if a cash gap remains?
Fundo provides Revenue-Based Financing for business purposes. A contractor may apply for funds to help cover business costs, subject to review. This is separate from buying on a supplier’s net 30 account.
Fundo at a glance:
- Monthly business revenue: At least $1,500 on average.
- Business history: At least three months.
- Bank activity: Consistent account activity that can be reviewed.
- Funding range: $500–$10,000, subject to approval.
Eligible sole proprietors and 1099 contractors may apply. Personal checking accounts can be accepted in qualifying cases. See the full Fundo eligibility requirements. Meeting them does not guarantee funding.
Fundo uses bank verification through Plaid as part of its process. Its bank-account review may consider deposits, cash flow, balances, returned items, current bills, and other funding.
For your own cash plan, include unpaid supplier bills alongside any new funding costs. Moving one bill into the future does not remove it from the budget.
Before you take an offer, check how much cash you get. Then check the full cost and when remittances start. Do not assume money only starts leaving your account after this customer pays.
Fundo’s current FAQs also state that Fundo does not serve California or New York.
Questions to settle before you charge the order
Do net 30 accounts give me cash for payroll?
A supplier trade account usually gives you more time to pay for goods. It does not put cash in your bank for payroll. You still need a plan for wages, fuel, and bills outside that account.
Does a late customer payment extend my supplier’s due date?
Not automatically. Follow the supplier’s terms. If you need more time, contact the supplier before the bill is due and seek written agreement to a new date.
Can I use net 30 terms and business funding together?
Yes, if both agreements allow it and your cash flow supports the costs. Include every due date. Also, check any terms that limit other funding or give a creditor rights over business assets.
Make the due date part of your bid
Before you take the next job, write down when the supplier needs payment and when your customer is due to pay. Price the work and plan the cash around both dates.
Have supplier bills to cover before project payments arrive?
Start your Fundo Revenue-Based Financing application and see whether your business qualifies!
Funding is for business use only. Approval, amounts, and terms are subject to underwriting.
Disclaimer:
Fundo offers Revenue Based Financing programs exclusively for business use. Any references to loan products, consumer products, or other financing forms are solely for marketing and educational purposes, aiming to differentiate Fundo's product from other similar financing options in the market.
