Top 10 Net-30 Vendors to Help You Build Business Credit
Building and maintaining a good business credit score should be near the top of every entrepreneur’s task list. Not only is it a good indicator of how well your business is doing, but it’s also essential for anyone that wants to secure financing.
Net-30 vendors and suppliers can be a great way to boost your business credit as it will be these organizations that report your on-time payments to credit bureaus. Discover how it works and which vendors are the best to work with.
What Is Vendor Credit and Net 30 Accounts?
Vendor credit is an amount of money that’s owed to a supplier or another third party. You’ll be given a deadline for payment and the date you settle the debt will usually be reported to the credit agency, Dun & Bradstreet. If you pay on time, or early, you’ll receive a positive credit score from the bureau.
Net 30 accounts - Net 30 accounts are a type of vendor credit that gives you 30 days to make a payment once you’ve been billed for goods or services. It’s a buy now, pay later deal and you don’t have to worry about your credit score taking an immediate hit
Why Use a Net 30 Account in Your Business
- You can take on more vendors - If you don’t have to worry about paying your debts immediately it gives you more flexibility to choose your suppliers and purchase more without worrying about immediate cash concerns
- Improve cash flow - A lot of businesses might not have huge cash reserves in the bank. Opting to use Net 30 vendors means your cash flow won’t dry out at inopportune moments
- Early payment discounts - Some vendors offer discounts for paying early. This is a great way to save cash and build up a strong relationship
- Build excellent credit - Top credit reporting agency, Dun & Bradstreet, will score you higher for paying at least 20 days in advance. If all of your vendors are net 30, and you pay all of them early, you’ll have excellent credit
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
Top 10 Net 30 Vendors That Can Help You Build Your Business Credit
1. Grainger Industrial Supply
Grainger Industrial Supply is a well-known vendor of power tools, hardware supplies, plumbing equipment, and health and safety gear. It’s a go-to vendor for tradesmen right across the country and is a well-known Net 30 supplier.
You can register for an account online in just a few minutes, but you’ll need to call the customer support line to set up a line of credit. The company may run a few checks on you first but most customers report that it’s relatively straightforward to set up. Plus, Grainger reports to other credit agencies besides Dun & Bradstreet making it a great choice.
One of the top shipping supplies companies in the country, Uline also offers janitorial products, facilities maintenance, and health and safety products. It primarily reports to Experian, but you can get in touch with customer service to see if your payments are being reported elsewhere too.
Uline offers 30-day terms to just about every one of its partners, although brand new businesses may have to evidence a few payments first before being offered a line of credit. If you’re unsure, get in touch with the customer service team that’ll be happy to walk you through the process.
3. Quill Office Supplies
Office supplies giant Quill offers just about every stationery product you can think of alongside a wide range of electronic kits such as computers, laptops, printers, batteries, and headsets. Plus, since the onset of the Covid pandemic, the supplier is now offering a good selection of disinfectant sprays, masks, and alcohol wipes to assist people as they return to the office.
Net 30 terms are offered to all customers but new businesses must purchase at least $100 per month over the course of three months to be eligible. This isn’t too onerous for most making it one of the easiest suppliers to build credit with.
Just about everyone in America has heard of Staples and it’s no surprise that this goliath offers Net 30 terms to its business customers. You’ll find all kinds of electronics, stationery, office furniture, cleaning supplies, facilities maintenance products, food and breakroom items, and a whole lot more.
It makes regular reports to Dun & Bradstreet and is a great big name supplier to have on board. In fact, Staples actually owns another vendor on our list, Quill, and you can expect similar terms before being offered a line of credit. All customers can sign up, but new businesses will need a record of prompt payments before getting Net 30.
5. Strategic Network Solutions
Strategic Network Solutions is a one-stop shop for all of your computer network needs. You’ll find top-notch cybersecurity solutions, endpoint security tools, and business continuity services should disaster strike your organization.
It’s well-known for its disaster recovery solutions and getting businesses back up and running in emergencies. It currently has more than 50,000 clients nationwide and offers Net 30 terms to its partners.
Given that IT costs tend to be quite significant, there are no caveats you need to meet before you can access a credit line and your invoices should all be net 30 from day one.
6. Summa Office Supplies
Another great office supplies vendor to make our list, Summa has been providing top-quality products for a number of years now. The company has a strong sense of corporate social responsibility and is very keen to work with small businesses across the country.
This means that even new and fledgling ventures have an excellent chance of being offered 30-day invoice payment options. Summa reports to both Experian and Equifax giving you a great chance of building a healthy score across multiple agencies.
Its product range might not be as extensive as Staples or Quill, but you’re guaranteed a more personalized service by the excellent customer support team.
7. Crown Office Supplies
Crown Office Supplies is a stationery vendor with a difference. Alongside typical products like pens, markers, and notebooks, you’ll also find back-to-school offers, electronics, and a range of interesting clothing.
To take advantage of Net 30 credit reporting here you’ll need to register an account using your employer identification number alongside your DUNS number. This will kick off an approval process and Crown will be in touch within a few business days to let you know if you’ve been accepted.
As long as you have a good personal credit history you should be OK, though newer businesses may be rejected. If accepted, your payment history will be reported to five different credit agencies.
8. Creative Analytics
This digital marketing agency uses data-driven strategies to help businesses grow substantial customer bases online. Alongside consulting work, Creative Analytics has an online store that offers electronics, office decor and accessories, professional beauty products, and fitness items.
It reports to Creditsafe and Equifax and to be eligible for its Net 30 invoicing you must make a purchase of $100 minimum, have a tax ID and DUNS number, be established for at least 30 days, have no delinquencies on your credit report, and be an authorized officer of your company.
Anyone that fails to meet these criteria can still apply for Net 30 terms but you’ll need to pay a monthly fee of $79.
Shirtsy provides custom garment printing, t-shirt designs, accessories, and business cards. It offers total freedom when applying your business logo to products and Net 30 applications are open to all partners.
To be eligible you’ll need to have a business registered in the US, have been operating for at least 90 days, have an employer identification number, and have no delinquencies on your record.
As long as you meet these criteria there’s an excellent chance you’ll be approved for credit terms, although Shirtsy asks that you check your application carefully as even a minor typo could result in checks failing and you being rejected.
10. Wise Business Plans
Wise Business Plans helps organizations pull together industry-leading business plans and strategies. It has a team of experienced MBA writers, market researchers, graphic designers, and financial modelers that will tailor a plan specific to your needs.
You can opt for ongoing consultancy or pay for a one-off plan. Either way, you can apply for a Net 30 account as long as you’re based in the US, have a tax ID, have been operating for at least 30 days, and have no delinquencies on your record. As long as you meet the criteria you should be approved within 24 hours.
Tips for Success
- 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 straightaway. Your suppliers will appreciate you being upfront and it increases the chance of working out an alternate payment plan
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 cashflows.
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.
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?