Using 30 Day Net Vendors to Build Your Business Credit Score
Net 30 Vendors
One of the techniques I teach in the “7 Secrets of Obtaining Business Credit” is Establishing your first reporting trade lines using 30 day net vendor accounts.
In the beginning of your journey it’s hard to get trade lines to report to the business credit bureaus because you don’t have business credit established and no lender wants to lend to your company. The solution is to establish “small business lines of credit” with companies that report to the business credit bureaus. “Small business lines of credit” meaning 30 day (or 15 day) net accounts. 30 day net simply means the amount owed is due in full in 30 days.
Here’s how it works. Similar to many companies, Quill, offers paper supply products and 30 day net payment terms. Quill offers two forms to pay for their products 1.) Pay By Credit Card (Traditional Payment Method) 2.) Invoice My Account (30 Day Net Terms). You’ll choose option 2 – invoice my account.
You will receive the product in the mail and you did not pay for it yet! Essentially a small line of credit (trade line) was extended to your company. Now, you need to pay the bill in the mail when it arrives. Upon payment, Quill will report to the business credit bureaus and ‘voila!’ you are on your way to building your business credit score. The more trade lines you build, the stronger your business credit score will grow.
Would you like to see a FULL, UPDATED LIST of “30 Day Net Vendors” with their contact information (similiar to Quill)?
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