Build business credit with these 19 easy approval net-30 accounts
Net-30 accounts to establish business credit
Updated:
April 1, 2024
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Accounting Manager
April 1, 2024
Businesses work with vendors to procure goods and services that help their day-to-day operations.
Read this blog to learn more about net-30 accounts, a helpful cash flow management tool some vendors offer to help extend credit repayment due dates.
Control spend, boost efficiency, and earn up to 1.25% cashback with Rho.
Net-30 accounts are trade credits that allow businesses to pay for goods or services within 30 days of receiving an invoice without incurring interest charges.
These accounts are often offered by vendors to help provide financial flexibility to companies, especially new or small businesses. The company receives goods and services upfront and pays for them 30 days later, helping to manage cash flow and other business finances.
Some net-30 vendors report payment history to business credit bureaus. Like corporate credit cards, loans, leases, and other lines of credit, properly managed Net-30 accounts can improve a business’s credit history and benefit newer startups with a shorter credit history.
With many net-30 accounts, payment is due 30 calendar days from the invoice date. However, in some cases, the payment period can be counted from the date the customer receives the goods or service rather than from the invoice date.
The vendor should clearly state the specific payment terms in the agreement.
To be authorized for a net-30 account, your business must have a good credit history, meet specific vendor requirements, provide necessary documentation, and have been operating for at least 30 days.
However, each vendor will have its own requirements for qualifying for a net-30 account. For instance, some vendors may require that the business owner hold a 25% or higher interest in the company. Others may need an initial deposit or a minimum purchase obligation.
The number of days before the payment’s due date may vary.
The most common and standard net payment term is net-30. With net-15 credit terms, the borrower faces a relatively fast turnaround time. Net-60 and net-90 terms are generally offered only to customers with proven creditworthiness.
Whether a net-30 or -60 is better for a business depends on its needs and cash flow. If the business expects to make the cash within 30 days, then a net-30 might be more suitable.
Ultimately, the choice of net terms will depend on the vendor's cash flow, the customer's credit history, and the industry's standards.
Net-30 accounts can replace or supplement credit cards (including personal cards used for the business), business loans, and trade or vendor credits.
Personal guarantees (PGs) are a form of collateral security in which the borrower pledges personal assets (such as a home, vehicles, or savings) to the lender to secure loan repayment if the business defaults on the loan.
Lenders often require PGs for new businesses that lack a strong business credit score or assets to secure the loan. PGs shift the risk from the lender to the individual guarantor, making the lender more willing to provide financing.
If the business defaults, PGs can have severe personal financial implications, so guarantors are generally advised to carefully consider the risks of PGs and even obtain independent legal advice before signing the PG.
The payment flexibility of net-30 accounts provides flexibility in managing cash flow, which can be particularly helpful for companies that rely on monthly revenue to cover costs. Also, Net-30 accounts typically do not incur interest charges if paid on time, making them a cost-effective way to access short-term financing without additional financial burden.
Since vendors may report net-30 payments to major credit reporting agencies (e.g. Experian business credit reporting, these accounts can help establish a small business's solid credit profile and improve its credit scores.
Net-30 accounts can also lead to cost savings for the business if the vendor offers early payment discounts..
The bottom line is that net-30 accounts provide businesses with cash flow flexibility, do not charge interest, help build business credit, and offer potential discounts for early payments.
To improve your business credit with the three major business credit bureaus, Dun & Bradstreet, Equifax, and Experian, you must take the following steps:
By improving your business credit standing with the three major credit bureaus, your business can qualify for better financing terms and vendor relationships.
Building trade credit involves establishing a positive payment history with vendors and suppliers.
Creating a good track record of paying suppliers on time is crucial because it helps businesses get the things they need, such as inventory, materials, or services, without paying for them immediately.
By handling these payment agreements well and paying on time, businesses can improve their reputation, have more flexibility with cash flow, qualify for better deals on loans or credit, and strengthen their financial position.
Increasing purchasing power means enhancing a business's ability to buy more goods and services with the same amount of money.
Negotiating with vendors for better terms, having the right business insurance, and applying for a business line of credit, such as a corporate credit card, can increase purchasing power.
These actions allow businesses to optimize their financial resources and make more efficient purchasing decisions to support growth and success.
Improving cash flow is key for businesses for several reasons.
First, it ensures the company can meet its short-term obligations, such as paying rent and payroll. It also helps cushion the impact of unexpected expenses, revenue fluctuations, or periods of uncertainty.
Finally, it provides opportunities to invest in business growth projects. Simply put, businesses cannot pay staff, restock inventory, or keep the lights on without the proper cash flow.
Ways to improve cash flow include keeping a weekly or monthly forecast to plan for the future and ensure sufficient funds are available, reducing spending, increasing prices, avoiding tying up too much cash in excess inventory, and improving the accounts receivable management.
The main downsides of net-30 accounts are the following:
Once you've assessed your business' financial capability to ensure you have the systems to manage a 30-day payment, choose the right vendor and apply for a net-30 account.
Quality of goods/services: Conduct thorough research to ensure that the vendor offers top-notch goods and services, keeps a great reputation, and has a simple credit application process.
Terms and conditions: Read the terms and conditions and the fine print to understand any fees or membership costs associated with the net-30 payment terms.
Customer service: Consider the vendor's customer service offerings when making your decision. If you are buying products that require constant communication with the customer service team, check to see whether the vendor offers free repairs and what customer service entails.
Take the following steps:
An EIN (Employer Identification Number) is a unique 9-digit number assigned by the IRS to identify your business. You can apply for an EIN online, by fax, or by mail through the IRS website.
Most states require you to register your business with the Secretary of State's office. Depending on your business structure, you will have to file articles of organization or incorporation, which you can do online or by sending paper forms through snail mail.
When registering your business with the state, you must typically provide a business phone number. (Although not required, having a dedicated business phone number can help establish the company's credibility and professionalism.)
A DUNS (Data Universal Numbering System) number is a unique nine-digit identification number provided by Dun & Bradstreet (D&B), a prominent business credit bureau. You can apply for a DUNS number online through the Dun & Bradstreet website.
Apply directly with the vendor. Have your documents ready and file all the paperwork according to the terms and conditions.
Reports to: Dun & Bradstreet (D&B), Experian, Equifax
Products/services offered: Office supplies, janitorial supplies, electronics, and equipment
Need to know:
Application link: NET 30 Application - Crown Office Supplies
Reports to: Major business credit bureaus
Products/services offered: On-demand t-shirt printing
Need to know:
Application: Shirtsy – On Demand Tee Printing
Reports to: Major business credit bureaus
Products/services offered: Tech products
Need to know:
Application: Create an Account - NeweggBusiness
Reports to: Tier 1: Equifax; Tier 2: Dun & Bradstreet (D&B)
Products/services offered: Office supplies, software, and e-books
Need to know:
Application: Business Account (coasttocoastofficesupply.com)
Reports to: Major business credit bureaus
Products/services offered: Shipping supplies, janitorial, and facility maintenance items
Need to know:
Application: Credit / Net 30 Terms (uline.com)
Reports to: Dun & Bradstreet (D&B) and Experian
Products/services offered: Office supplies
Need to know:
Application: Cleaning & Office Supplies for Every Workspace | Quill.com
Reports to: Dun & Bradstreet (D&B), Equifax Business, and Creditsafe
Products/services offered: Digital campaigns, conversion-optimized websites, and apps
Need to know:
Application: Business Membership Account Application | Creative Analytics
Reports to: Dun & Bradstreet (D&B)
Products/services offered: Industrial, maintenance, and office supply products across various categories
Need to know:
Application: Financing Information (grainger.com)
Reports to: Dun & Bradstreet (D&B) and other major credit bureaus
Products/services offered: Industrial supplies
Need to know:
Application: Net 30 Terms with JAM Industrial Supply
Reports to: Not specified
Products/services offered: Office supplies, furniture, technology, and cleaning products
Need to know:
Application: Staples Business Accounts
Reports to: Major business credit bureaus
Products/services offered: Digital marketing services (content, video, web, and mobile solutions)
Need to know:
Application: Net 30 Business Accounts. Purchase Services Now, Pay Later! - NAMYNOT Inc.
Reports to: Major business credit bureaus
Products/services offered: Maintenance, Repair, and Operations (MRO) products, Janitorial and Operational Supplies & Equipment (OS&E), and renovation services
Need to know:
Application: equifax-8801.my.salesforce-sites.com
Reports to: N/A
Products/services offered: A wide product selection
Need to know:
Application: Amazon.com: Amazon Business Pay by Invoice
Reports to: Major business credit bureaus
Products/services offered: Branded apparel
Need to know:
Application: Branded Apparel Club
Reports to: Not specified
Products/services offered: Office supplies, printing, and furniture
Need to know:
Application: Office Depot PROX: Content Modal (citibankonline.com)
Reports to: Major business credit bureaus
Products/services offered: Office supplies, apparel, electronics, kitchen appliances, and business cards
Need to know:
Application: About NET 30 Account - Office Garner
Reports to: Major business credit bureaus
Products/services offered: Office supplies, electronics, and custom design and branding services
Need to know:
Application: Join Business NET 30 Account Today! - The CEO Creative
Reports to: Experian and Creditsafe
Products/services offered: IT products and services
Need to know:
Application: Strategic Network Solutions (stntsol.com)
Reports to: Dun & Bradstreet (D&B) and Experian
Products/services offered: Hair and beauty, gifts, home and decor, jewelry, men's gifts, and eyewear
Need to know:
Application: JJ Gold NET 30 - GET MORE WITH THE NET 30 ACCOUNT
Pay on time to build your reputation, foster a solid professional relationship with the vendor, and ensure your business' credit score does not suffer.
To track your spending, separate your business and personal expenses. Open a business bank account and credit card. Leverage expense management tools and accounting software and establish an expense tracking process to collect, organize, and store receipts, invoices, and other expense documentation. Set up performance metrics and track against them regularly.
Monitoring your credit will help you stay proactive and address any issues promptly that may be affecting your score. Regularly check your business's score at major bureaus, such as Dun & Bradstreet, Equifax, and Experian, to understand the company's creditworthiness, payment history, and any reported transactions impacting its credit.
By responsibly using corporate credit cards, your business can establish and improve its business credit profile, which is essential for accessing financing and other credit-based services in the future.
There are other benefits, as well. Corporate card accounts have tools to track and manage employee spending, simplifying expense management processes and ensuring transparency in financial transactions.
They also often come with higher credit limits than personal credit cards, giving your business added flexibility with cash flow management.
Corporate cards also shift the liability from the individual making the purchase to the business entity, protecting personal assets and reducing the risk for small business owners. Lastly, corporate cards often come with rewards for certain purchases and payments, giving you access to discounts, cash back, or travel rewards.
Loans are another alternative to net-30 accounts. Loans can build credit history, improve credit scores, access larger credit amounts, and diversify the business's types of credit.
Business leases refer to leasing equipment, vehicles, and other assets without the full upfront capital investment required for purchases. These leases can help establish credit history, improve the business’ credit score, and ultimately diversify the credit mix.
They can be beneficial for businesses that need access to resources to open, operate, and grow but may not have the cash flow for purchases upfront.
Rho offers corporate credit cards that can serve as P-cards, short for procurement or purchasing cards. P-cards are business-liable credit cards that make purchasing business expenses easier.
Business credit cards can complement or serve as an alternative to net-30 accounts by offering improved cash flow, credit-building opportunities, financing flexibility, and expense management tools and capabilities.
The Rho Corporate Card can serve as your P-card because you can set strict spend controls and restrictions on your Rho Corporate Cards.
An added benefit is that Rho Corporate Cards can simplify and streamline the business’ spend management processes, so you and your team can spend fewer hours on administrative busy work and more time on strategy.
A net-30 account is a tradeline, meaning a credit offered by a trade business. The vendor provides goods or services to the business, which must be paid back within 30 calendar days of the invoice. These vendors can include manufacturers, wholesalers, service providers, etc.
Not all vendor tradelines report payments to credit bureaus, but some do and can help you build your credit history.
A financial tradeline is a credit account or relationship with a financial institution. These include business loans, lines of credit, leases, and credit cards.
Financial tradelines secure loans, credit, or other financing from lenders. When paid off on time, they help demonstrate the business's creditworthiness.
A net-30 account is a trade credit or vendor account that allows a business customer to pay for goods or services within 30 calendar days of the invoice date rather than requiring immediate payment.
The number of net-30 accounts a business should have depends mainly on the company's cash flow and business needs. The key is using a net-30 account responsibly so it benefits rather than hinders the business.
Several large retailers and suppliers, such as Costco, Home Depot, Office Max, and Staples, provide net-30 accounts to their business clientele. Walmart used to offer a net-30 account but now offers other lines of credit.
The cost of a net-30 account depends on the vendor. Some vendors offer net-30 accounts for free. Others require a yearly membership or a minimum purchase amount.
Uline, Quill, Amazon Business, Costco, Home Depot, Office Max, and Staples offer net-30 accounts.
Generally, the requirements to open a net-30 account include a business registration proof, EIN, positive business credit history, and balance sheets, and some vendors may require a PG.
You can identify and connect with local vendors who offer net-30 accounts and who report to major business credit bureaus. You can also get a net-30 account at national retailers such as Uline, Quill, Amazon Business, Costco, Home Depot, Office Max, and Staples.
To get net-30 terms, assess your business's financial health and cash flow to see if you can pay back on time without financial strain. Then, identify a vendor who offers net-30 terms and apply for a loan.
Net-30 terms are a helpful cash flow management tool that can help businesses prioritize immediate cash use for more strategic operational uses.
As you consider working with vendors, two time-consuming steps in the AP automation process are invoice management and payment. Rho AP Automation can help streamline vendor payments, transforming a time-consuming process into a seconds-long workstream.
Want to learn more about Rho AP Automation? Schedule a demo with a Rho specialist today.
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