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Net-30 Accounts & Building Business Credit: The Essential Guide

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Small businesses often need financing help, but you must have established credit to get approved for loans or lines of credit. This puts some businesses in a catch-22 of needing financing to build credit but not having the credit to get approved for funding.

One way small businesses can establish and build business credit is by using net-30 accounts. These accounts establish credit with vendors that sell the products and services companies use to do business.

This guide provides what you need to know about opening and maintaining net-30 accounts so you can decide if it’s right for your business. Specifically, we’ll answer your questions and more:

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    What are Net-30 Accounts?

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    Net-30 accounts allow you to buy needed business supplies and support now and pay within 30 days. These types of accounts are also known as vendor credit, supplier credit, or trade credit.

    The process requires working with a vendor or vendors that supply trade credit. In most cases, you’ll open an account with the company. Some vendors charge annual membership fees, while others don’t.

    Once you open a net-30 account, the vendor essentially acts as both a supplier and a lender. You can get the products or business services on credit.

    Vendors that supply trade credit will typically invoice you for the amount owed and log the transaction in its accounts receivable. You will log the transaction into accounts payable.

    Some vendors report your trade credit and payments (or late payments) to the business credit bureaus, which can help establish and grow business credit. In most cases, paying off your balance early boosts credit. Some vendors offer discounts for early payment.

    Why do businesses use Net-30 Accounts?

    delivery, export, supply, Net-30 account, business credit, build business credit

    Using supplier credit offers multiple benefits to businesses. It allows you to get the materials needed to fulfill customer orders and then pay for them after receiving payment. This method is a widely used practice in business and supply chain logistics.

    Cash Flow Management

    You can use net-30 terms to manage your business’s cash flow better. You don’t need to provide the money upfront to acquire the needed supplies or services. Instead, you can develop and deliver your products to your customers, receive payment, and then pay for the supplies. It helps ensure you have money coming in before money goes out.

    Create a Barrier Between Personal and Business Credit

    Many startups and younger businesses use personal credit cards or personal loans to fund operations. This process can damage both your personal and business credit.

    However, getting a business line of credit might not be possible until you’ve established a business history. Net-30 accounts allow you to create a firewall between your personal and business credit.

    Improve Business Credit

    Once you’ve established a trade credit account with a vendor that offers net-30 accounts, you can begin buying now and paying later. The vendor reports the activity to the business credit bureaus as you make on-time or early payments.

    Over time, that positive activity can increase your Dun & Bradstreet PAYDEX SCORE. Improving your business credit can help you get approved for business loans and lines of credit. It also opens the door to larger net-30 credit limits from vendors.

    No Personal Credit Checks

    Many net-30 vendors only review your business history when approving a net-30 credit limit. Some will look at your personal credit score, but many vendors don’t. Try to work with a vendor that doesn’t do a personal credit check if you have a low personal credit score.

    What are the best vendors for Net-30 Accounts?

    Here is our list of the top 15 vendors for net-30 accounts. The list contains vendors for a wide range of business supplies and services across various industries.

    Creative Analytics

    Creative Analytics logo, net 30 account, busines credit, credit bureaus

    Creative Analytics provides digital marketing and consultancy services. It’s a full-service firm that provides website creation and management, branding, and other services. The company offers three types of net-30 accounts for businesses.

    Businesses can get an annual purchasing charge account for a $79 yearly fee. You can purchase the company’s products and services on a monthly payment plan with credit lines between $1k and $10k.

    The next option is a “business credit on autopilot” plan that does not include an annual fee. Tradelines are between $1k and $12k.

    To qualify, you must:

    • Operate in the US.
    • Have a Tax ID (EIN) and a D-U-N-S number.
    • At least 30 days of business history.
    • Not have any business delinquencies or negative reports.
    • Have an authorized officer of your company submit the application.

    Office Garner

    Offic garner logo, business credit score, net 30 account, credit bureaus, credit line

    Office Garner sells office supplies, apparel, electronics, kitchen appliances, and business cards. Aside from its tangible inventory, the company also provides web design services.

    It is a member of the Small Business Financial Exchange (SBFE) and the National Association of Credit Management (NACM). Office Garner offers a convenient online application for net-30 accounts.

    There is a one-time $69 processing fee to set up an account. The company also reports to Equifax Small Business and some lesser-known credit bureaus.

    In addition, Office Garner has an online reputation for excellent customer service. You must be based in the US, have 30 days of business history, and have no negative business credit reports to qualify.

    Business T-Shirt Club

    Business T-shirt club logo, business credit score, net 30 account

    The Business T-Shirt Club is a membership-based provider of wholesale premium apparel brands with custom print and embroidery for branded items. Members can order t-shirts, hats, hoodies, sweatshirts, jackets, bags, workwear, pants, and more.

    The annual membership fee is $69.00. New customers must put down a 50% deposit for their first five orders. Once you pay those invoices on time, there is no more deposit requirement. Business T-Shirt Club reports to Equifax, CreditSafe, Ansonia, Nav, and Cortera.


    Uline logo, net 30 account

    Uline provides various shipping supplies, cleaning and janitorial supplies, and some warehouse equipment. It has a reputation for excellent customer service and being one of the more accessible net-30 accounts to open.

    New and younger businesses should consider the company because of the ease of approval. However, if you’re a new business with zero tradelines to report, you should call them directly to discuss your options.

    The company does not charge an annual membership fee. It reports to Dun & Bradstreet and Experian Business.


    Quill logo, net 30 account,

    Quill is an excellent net-30 account option because it doesn’t have an annual service fee and provides a wide range of business supplies. However, new customers must make regular purchases for the first two months before being extended a credit line.

    In addition, you must make $100 worth of purchases per month.

    The company provides:

    Office supplies.

    • Printing and mailing supplies.
    • Cleaning materials.
    • Furniture.
    • Computers & accessories.
    • Healthcare & safety supplies.
    • Tools & MRO supplies.
    • Teaching and school supplies.

    Quill reports to Dun & Bradstreet.

    Summa Office Supplies

    Summa office supplies logo, net 30 account

    Summa Office supplies provide various items like pens, pencils, folders, envelopes, labels, etc. The annual service fee is $75. New customers might need to make several prepaid $75 orders before receiving credit.

    The company offers written trade credit references, which help small business owners improve their credit. Summa Office Supplies reports to Experian and Equifax.

    Wise Business Plans

    Wise business plans logo, net 30 account

    Wise Business Plans focuses on new businesses but can help business owners at any stage develop business plans, branding, websites, and digital marketing assets. The company offers a team of MBAs, researchers, marketers, and financial analysts to create custom business plans, PowerPoints, presentation decks, logos, and more. You can get business plans for franchises and non-profits as well as investor-grade and bank-compliant plans.

    You need 30 days in business and an Employer Identification Number (EIN) to qualify. Businesses younger than 30 days should contact their customer service to discuss credit options.

    There is a $99 annual membership fee to maintain a net-30 account. The minimum order required to report to the credit bureaus is $97. It reports to the three major business credit bureaus: Dun & Bradstreet, Experian, and Equifax.


    Grainger log, business credit, net 30 account

    Grainger offers over 1.5 million industrial and safety products. To apply, you must register an account online and then call customer service to request net-30 terms.

    You need 90 days in business, an EIN, and active tradelines to qualify. Grainger reports to Dun & Bradstreet.

    Ohana Office Products

    Ohana office procuts logo, business credit, net 30 account

    Ohana Office Products sells a wide range of office supplies and electronics. You can see a limited selection of items from their website but must create an account to see the entire catalog.

    After creating an account, you can request net-30 terms. You must be US-based, have a clean business credit history, and have 30 days in operation.

    Credit limits start at $2,000 and could increase by $1,000 for every $80 order. Ohana reports to Equifax.


    NAMYNOT logo, net 30 account, business credit

    The digital marketing services firm NAMYNOT provides web design, SEO, content marketing, lead gen, and social media management. The offer credit limits up to $10k and approval within two days.

    You can get a net 30 account with a prepaid credit builder service for an upfront fee of $50. Or you can get a standard account with no fee.

    There is no annual fee for net-30 accounts. You need an EIN and 90 days in business.

    HD Supply

    HD supply logo, net 30, credit line

    HD Supply provides a wide range of industrial and business products. It’s one of the largest industrial distributors in the country. The company also provides training resources such as technical training and property improvement.

    There is no annual membership fee to maintain a net-30 account with HD Supply. The company reports to Dun & Bradstreet.

    You must maintain a balance at the end of the month to get reported to the credit bureau. Purchases made and paid off in the same month won’t get reported.

    Strategic Network Solutions

    Strategic Network Solutions logo, net 30 account, credit line

    Strategic Network Solutions provides businesses with various IT equipment, including computers, accessories, and networking gear from some of the top brands in the industry. You must order an $80 downloadable product and select “Bill My Net 30” at checkout.

    Once you pay the invoice, the company extends a credit limit of $2,000 for net-30 accounts Strategic Network Solutions reports to Experian.

    Crown Office Supplies

    Crown office supplies logo, net 30 account,

    As its name implies, Crown Office Supplies offers a wide range of office products, including staplers, filing accessories, inkjet printers, copiers, and more. The products are reasonably priced and of professional quality.

    Net-30 accounts carry a $99 annual fee, but you get free shipping on all orders. Another advantage of the company is that it reports to the big three credit bureaus: Experian, Equifax, and Dun & Bradstreet.

    Amazon Pay By Invoice

    Amazon pay by invoice logo, net 30 logo

    Amazon offers an invite-only net-30 account called Pay by Invoice. As the largest online marketplace in the world, businesses can find essentially any product they’d need on the site.

    Unfortunately, you cannot apply directly to the program. To begin the process, open an Amazon Business Account. Building your purchase history will increase your chances of receiving an invite, but there’s no guaranteed method.

    If you receive an invitation and get a net-30 account, you can begin ordering products and paying for them by invoice. If you have an Amazon Business Prime membership, you could extend terms to net-45 or even net-60 for enterprise-level businesses.

    While an Amazon net-30 account will help get the products you need to do business, it does not report to any business credit bureau. You’ll need a different service if you’re trying to build business credit.


    newegg logo, net 30 account

    Newegg offers an extensive catalog of electronics, software, networking gear, and office supplies. You browse the available catalog before signing up. It provides technology solutions used across most industries.

    The company also makes opening and maintaining net-30 accounts a painless experience. You get an account portal where you can manage invoices, payments, and notices. You can also track your overall account performance.

    There is no annual fee to maintain an account. Newegg does not report to any credit bureaus or Dun & Bradstreet for Net Terms.

    What are the advantages of Net-30 Accounts?

    teamwork, cooperation, brainstorming, build business credit score, net 30 advantages

    The primary benefit of net-30 accounts is getting the products or services your business needs before you receive the revenue to pay for them. The process allows you to meet customers’ needs while maintaining a smooth and consistent cash flow.

    Another reason small business owners like net-30 accounts is that it can help establish and build business credit. Many vendors only require 30-90 days in business to qualify, while lenders often require a year or more in business.

    You can create tradelines that help grow your business credit so you can qualify for larger loans and lines of credit from business lenders once you reach the time in business requisite.

    Paying net-30 accounts on time, or even early, also helps improve your credit with vendors. Most of the companies in this article offer Tier 1 accounts, which are easier to obtain, but have lower credit limits. As you build your trade credit history, you can open the door to Tier 2, Tier 3 accounts, which include more significant credit limits and longer payment terms.

    Developing ongoing relationships and proven vendor payment history could also create unique perks and opportunities. For example, some vendors might offer free shipping or a shipping discount for accounts in good standing.

    Many net-30 vendors do not check personal credit scores, so you can qualify even if you have a low credit score. It also helps separate your personal and business credit.

    For example, suppose you launched your business using a personal loan and personal credit cards. As a result, your personal credit score took a hit, and you now can’t qualify for a business loan.

    Establishing a net-30 account allows you now cover inventory or materials costs using only business credit. You can pay down your personal debt while building business credit.

    What are the disadvantages of Net-30 Accounts?

    attention, exclamation mark, sign, net 30 disadvantages

    The drawbacks of supply credit mainly apply to late or missed payments. Just as making on-time payments can improve your business credit, late payments can hurt your business credit, making it more difficult to establish credit elsewhere.

    Late payments also incur additional fees that hurt your cash flow and overall profitability. Default payments can potentially lead to legal action.

    Before agreeing to terms with a net-30 vendor, review the contract carefully to ensure you have the cash flow to support payments and are fully aware of the consequences of late or missed payments.

    Some vendors will require you to sign a personal guarantee, especially for new and unproven companies. A personal guarantee is a legally binding promise that you are personally responsible for any unpaid debt. This means if you default on a payment, the company can come after your personal assets to recoup its losses even if your company has limited liability protections.

    Many vendors charge annual fees or have minimum purchase requirements. This includes a minimum purchase amount to report the transaction to the business credit bureaus. Ensure your company can afford the annual fee, which is usually manageable, and that you will regularly make orders at the minimum purchase amount if the vendor has one.

    Buying supplies or services on credit might also mean missing other cost-saving opportunities. Some vendors offer cash discounts when you purchase upfront.

    Net-30 Account Pros & Cons

    Here’s a quick summary of the benefits and drawbacks of using net-30 accounts for your business.

    weigh up, plus, minus, pros, cons, net 30


    • Allows you to obtain needed products or services on credit.
    • You can pay for business supplies after receiving revenue from your customers.
    • It can help you better manage your cash flow.
    • An excellent way to establish and build business credit.
    • It could unlock more significant trade credit limits & vendor perks.
    • It helps separate your personal credit from your business credit.
    • Many net-30 vendors do not check your personal credit score.


    • Late or missed payments could damage your business credit and reputation.
    • Fees for late payments could disrupt your cash flow and hurt your business.
    • Some vendors require a personal guarantee, especially for younger businesses.
    • You might have to pay an annual service fee.
    • A net-30 vendor might require you to make a certain number of purchases before extending credit.
    • There could be minimum purchase amounts to report to credit bureaus.

    Frequently Asked Questions

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    Here are the most common questions about net-30 accounts.

    What does a 2/10 net-30 account mean?

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    If you see a fraction like “2/10” in front of a net-30 account, it refers to a discount opportunity for paying off the balance early. A 2/10 net-30 account means you will get a 2% discount if you pay the invoice in the first 10 days.

    There might be other discount incentives, such as a 5/7 account, which means you’ll receive a 5% discount for paying in the first 7 days. These opportunities to reduce costs often also mean you can build your credit faster since early invoice payments are weighted more heavily than on-time payments.

    What are Net-60 and Net-90 accounts?

    meeting, brainstorming, business, net 30, net 60, net 90 differences

    A net-30 account means you have 30 days to pay the invoice. Likewise, a net-60 account means you have 60 days to pay, and a net-90 account means you have 90 days to pay. The start date is the day you receive the invoice in most cases. There are also net-45 accounts, net-120 accounts, etc.

    Net-30 accounts are more common and usually the best option for small businesses. Some vendors might offer to increase to net-60 accounts once your business processes a larger volume with the vendor and has a long history of paying on time. Many only offer these extended terms to larger enterprise-level companies. Net-30 accounts could be considered entry-level trade credit for small businesses.

    Longer credit terms might be offered in some industries where there is a longer payment cycle. For example, some healthcare facilities might get net-60 or net-90 accounts since payments from clients, Medicare, or insurance companies might take longer to arrive. Shipping and transportation are other industries where businesses might get longer payment terms.

    What is business credit?

    credit card, master card, visa card, business credit score, business credit reports, net 30, business credit cards

    Business credit refers to your company’s ability to borrow money. Just like personal credit, business credit is primarily measured using a business credit score. There are several business credit scores available.

    Your credit score influences your ability to access business credit cards, loans, equipment financing, and lines of credit. It also is a significant determining factor for the interest rates you receive on those financing products. Generally, the higher your credit score, the lower your interest rate.

    Business credit can impact your company’s ability to grow and expand. Most small businesses don’t have the available capital to fund expansion activities such as hiring new staff, increasing inventory, opening new locations, or acquiring other companies. Access to lending products, such as term loans, SBA loans, lines of credit, etc., creates more opportunities to support growth.

    There are several business credit bureaus, but the three major bureaus are Dun & Bradstreet, Experian Business, and Equifax Business.

    Dun & Bradstreet (D&B) Business Credit Scores

    Dun & bradstreet logo, net 30, business credit report, credit bureaus

    Dun & Bradstreet uses multiple scoring indexes to give lenders and vendors a complete picture of a business’s ability to repay debt. The D&B PAYDEX® Score is a scale of 1-100 and measures a company’s previous payment history. Scores between 80 and 100 indicate a low risk of late payment, while anything under 50 indicates a high risk.

    The D&B Delinquency Predictor Score (DPS) measures the likelihood of a company becoming delinquent on payments. 1 means a low risk, while 5 indicates a high risk. The D&B Failure Score® also uses a 1-5 scale but measures the likelihood of a business facing financial stress, such as going bankrupt with a 12-month outlook.

    Additional D&B scores include:

    Supplier Evaluation Risk (SER) Rating: measures the risk involved with companies seeking to join the supply chain. The score is on a scale of 1-9, with 1 being low-risk and 9 being the highest risk.

    Maximum Credit Recommendation: creates a guide for companies considering extending a line of credit. It analyzes a company’s size, industry, and payment history.

    D&B Rating: combines a company’s size and balance sheet information to reach an overall creditworthiness rating.

    Cyber Risk Rating: measures a company’s overall risk to cyber-attacks and similar risks.

    Does opening a Net-30 Account establish business credit?

    laptop, office, hand, net 30,

    Opening a trade credit account with a vendor won’t establish or build business credit in and of itself. You must start making purchases and paying the invoices off on time or early to establish a trade line, which measures your revolving or installment credit payments. The more payments you make, the more creditworthy your business becomes.

    Long-standing trade lines with positive payment history are among the best ways to improve business credit. Once you get to two years of payments, you might get what’s called a “seasoned trade line.” This increases your creditworthiness to lenders and other companies that might extend credit. Seasoned trade lines often create access to increased credit limits.

    What are other ways I can build business credit?

    entrepreneur, idea, competence, positive payment history , credit bureaus, building business credit, net 30,

    Net-30 accounts with consistent purchases and payments are one of the most accessible ways to establish and grow business credit. Your company needs supplies or services anyway, and purchasing them on credit helps manage your cash flow. However, there are other ways to help boost your business credit rating.

    Open a Business Bank Account

    Creating a business bank account separates your business financials from your personal finance. It makes monitoring your cash flow and revenue streams easier for business credit reporting agencies.

    Several net-30 vendors will provide payments from your business bank account. Many business loans and lines of credit are structures to disburse loan proceeds to your account and take repayments from the same account.

    Business Credit Cards

    Opening a business credit establishes a credit limit. You could improve your business credit scores as you make purchases and pay them off. However, you must be careful, as carrying a high balance or late payments can negatively affect your credit score.

    Business Lines of Credit

    A line of credit operates like a credit card but is more versatile. Well-qualified businesses can often get a higher credit limit and lower interest rates. Lines of credit establish a credit limit, and on-time payments can positively impact your credit score.

    Keep Credit Utilization Under 30%

    Establishing a credit limit with a credit card or line of credit shows other lenders that you are creditworthy. However, the more credit you use, your utilization increases. High credit utilization means you have high debt payments and don’t have the capacity to take on more debt. Keeping your credit utilization below 30% shows that you can manage increased debt payments and will boost your credit score over time.

    Monitor Your Credit Scores

    Knowledge is power, and keeping an eye on your credit score empowers you to intervene when there is a negative credit report. Consider following your credit scores at the major bureaus to track your improvements over time.

    Some bureaus or credit monitoring services charge a fee to access your business credit report. That cost might be worth it if you want to be proactive in tracking your credit scores so you can continue to borrow money and grow your business.

    Net-30 Accounts – Final Thoughts

    people, business, meeting, net 30, business credit history, business credit rating, major business credit bureaus

    Opening a trade credit account with a vendor is an excellent option to get the materials or services you need and build business credit – as long as you pay on time or early and work with a vendor that reports to the credit bureaus. Business credit can get a little confusing with the different scores and indexes. But the principles to create and maintain credit are to make regular on-time payments, have strong financing with consistent cash flow, and keep your credit utilization under 30%.

    There are some risks involved in buying vendor services on credit. Late or missed payments can incur extra fees and lower your credit rating. It can also negatively affect your business’s reputation and relationship with other vendors.

    Ensure you don’t borrow more than you can afford, and take advantage of early payment discounts when available. Keep an eye out for annual service fees and minimum purchase requirements as well. You want to ensure you can afford the costs involved with opening an account.

    Contact us if you have questions about business credit or want to apply for a small business loan. Our loan executives can answer your questions and help you find a lending program that suits your business needs.

    We will help you grow your small business.

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