Finimpact

What You Need to Know Before Opening a Net-30 Account

  • Register for a DUNS number - This is a unique business identifier you receive when you register at the Dun & Bradstreet credit bureau. This is essential before you can start to build a business credit rating
  • Ask your vendors to report - Not all suppliers will make reports to credit bureaus so it’s always worth asking your vendors to inform the various agencies of your payment history. Dun & Bradstreet request at least four partner vendors before you start to build credit
  • Initial purchases - Some Net 30 vendors will request you make an immediate full or partial payment on your first order so as to build a base level of trust. Keep this in mind if the purchase is expensive
  • Credit inquiries - Bear in mind that some suppliers may run credit searches on both your personal and business score before doing business with you. These will usually be soft pulls, but it’s always worth regularly checking your credit reports for activity to see if any issues are arising
  • Have a business footprint - This includes running a separate business bank account, getting your phone number listed in directory assistance, and establishing an online profile. This helps add legitimacy to your business as well as boost your credit score

 

Tips for Managing Business Credit in a Responsible Manner

  • Always pay on time - If you miss any payments not only do you risk losing your Net 30 status with that supplier, your business credit could take a significant hit. Remember, months of perfect credit can be undone by just one or two skipped payments
  • Pay ahead of schedule - If you pay your debts well in advance of the due date you’ll be rewarded with a higher credit rating by Dun & Bradstreet. The sooner you pay, the higher your score
  • Negotiate with your suppliers - While the vendors on our list are a good start to cover a lot of business needs, you’ll of course be using a wide range of suppliers. Build a relationship with each one and ask that your repayments be reported. The more vendors that report, the more representative your score will be
  • Stay in touch with your vendors - If it looks like you’re going to struggle to pay an invoice, or issues have arisen in your payments, make sure to let your vendor know. Your suppliers will appreciate you being upfront and it increases the chance of working out an alternate payment plan

Conclusion

Opening Net 30 lines of credit with your suppliers is one of the easiest, and fastest, ways to build business credit. Most vendors that operate on these terms will accept businesses that have been operating for just 30 days which makes it an ideal solution for brand new businesses to start building a good score.

Plus, paying on time is a great way to establish a long-term relationship with your suppliers and you may even receive discounts for paying early. Why not take a look at some of the vendors on our list to get started, or even ask some of your local suppliers if Net 30 terms are available?

Vendor Credit FAQ

How do Net-30 Terms Work?
Net 30 terms mean you have 30 days to pay an invoice for goods or services from the date it’s issued. If you pay before, or on, this date the vendor will report positively to credit agencies. If you go over the deadline you’ll get a negative mark and your score could suffer.
Why Do Companies Pay Net 30?
Net 30 helps many vendors expand their customer base. Companies appreciate being given extra time to pay and suppliers can take on more clients as a result. Customers enjoy paying Net 30 terms because it gives them flexibility and has less of an immediate impact on cashflow.
Does Net-30 Days Include Weekends?
Yes. Net 30 terms are always based on 30 consecutive calendar days from the date the invoice is first issued.
Does Amazon Do Net 30?
Yes. Amazon does allow for 30-day payment terms for its business customers subject to passing a credit check. However, the platform doesn’t say which credit agencies it might report to so you might want to check with the Amazon business accounts customer service team.

About the Authors

Anthony Edmundson

Written by: Anthony Edmundson

Freelance Content Writer

Anthony is a freelance content writer and voice over artist since 2017. Though Anthony specializes in a wide range of topics, it's through running his own company and many years of working in the business lending industry that he can offer the expert advice our readers count on.

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Kal Salem

Reviewed by: Kal Salem

CPA, PMP and Finance Consultant

A CPA and finance professional working with small businesses to educate owners and grow alongside their businesses. He holds a Masters in Accounting and a BS in Supply Chain Management. Owner at Salem CPA Services LLC.

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Somer G. Anderson, Ph.D.

Fact checked by: Somer G. Anderson Ph.D., CPA

Accounting and Finance Professor

Somer G. Anderson has been working in the Accounting and Finance industries for over 20 years as a financial statement auditor, a finance manager in a large healthcare organization, and a Finance and Accounting professor at Maryville University.

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