3 EASY APPROVAL NET 30 ACCOUNTS: WHAT THEY ARE,
HOW TO GET THEM, AND MORE
9 Easy Approval Net-30 Accounts
In today’s article, we’ll focus our attention on multiple net 30 accounts that will assist your business in building credit. It doesn’t matter whether yours is an established organization or an upstarting startup. These net 30 accounts will take your business credit through the roof.
But before that, we’ll tell you what net 30 accounts are and how they work. We’ll also reveal the various benefits your business can get from having these accounts, in addition to improving its credit. Plus, you’ll also know what you need to apply for net 30 accounts.
Read on to know more.
WHAT IS A NET 30 ACCOUNT?
Net 30 accounts enable you to buy products or services now and pay for them in 30 days. Vendors that extend this credit to your business are known as net 30 vendors. These vendors report your payments to commercial credit agencies, helping your business establish solid business credit scores.
Most net 30 vendors can extend a small credit line of up to $1k to a company that is just starting out and has no credit file established. Some of them don’t require any personal credit check, too, helping those business owners who have no intention of using their personal credit.
HOW CAN I USE MY NET 30 ACCOUNT?
You can use your net 30 account to purchase products or services from the vendor that gave you that credit line. That’s precisely what differentiates net 30 accounts from business credit lines, with which you can go and shop anywhere you want.
Still, you can accrue various benefits by opening a net 30 account. Firstly, by giving you a net 30 account, the vendor is giving you exclusive access to their products and services on credit. Secondly, if you pay the invoice amount before the 30-day term expires, you may get a discount on the purchased items.
WHY SHOULD I OPEN A NET 30 ACCOUNT?
Here are the various benefits of establishing business net 30 accounts:
1) Expand Your Customer Base A net 30 account might help expand your customer base in various ways. Firstly, by giving you the financial freedom to extend the 30-day payment option to your loyal customers. Secondly, by letting you include an early payment discount for those customers who repay the remainder before the 30 days are up.
2) Separate Personal and Business Credit Many new business owners give in to the temptation of using their personal credit card to buy supplies for their business. They don’t realize that THIS APPROACH MIGHT HURT their business as well as personal credit rating, something Net 30 accounts avoid by separating personal and business credit.
3) Build Business Credit you pay for all your purchases within 30 days, net 30 accounts will help your company build a solid business credit with business credit reporting agencies. This, in turn, might boost your business’s D&B PAYDEX SCORE, potentially convincing lenders to approve you for financing on generous terms.
4) No Personal Credit Check Some net 30 vendors (but not all) won’t go through your personal credit. That means that even if you have BAD CREDIT, you may still get the chance to establish vendor credit for your business. This is excellent news for business owners who know their personal credit needs improvement.
HOW CAN I APPLY FOR A NET 30 ACCOUNT?
Here’s what you need for a business credit net 30 account:
1. Employer Identification Number. You can get the EIN from the IRS. If your business has been up and running for quite some time, there’s a very good chance you already have an EIN for tax-reporting purposes.
2. Separate legal entity. Register your business as a corporation or a limited liability company at least a month before submitting a net 30 account application. Both these legal entities are similar in some aspects, though LLC’s management is much easier.
3. Good business standing. Net 30 vendors have their underwriting team to verify that the company applying for the net 30 account is in good business standing. So go to your state’s website and ensure your business’s report filings are up to date.
4. Business bank account. The next thing you need to apply for a net 30 account is your business bank account details. They include your bank name, bank address, bank phone number and bank contact person.
5. Business contact information. Write down all your business information on a spreadsheet. Make sure to refer to it when completing a credit application – any mismatch might result in credit denial or the creation of a duplicate credit file.
3 EASY APPROVAL NET 30 VENDOR ACCOUNTS
Whether you already have a burgeoning business or still building one from the ground up, these three vendors will help you build business credit fast. Some of them also report the annual fee they charge to the bureaus, helping your business build solid credit. Following are the top three net 30 vendor accounts:
THE CEO CREATIVE
-Annual membership fee: $49
-Reports to: D&B, Equifax Business & Credit Safe
The CEO Creative offers custom design and branding services, office supplies, business accessories, electronics and business websites. It charges a zero percent interest rate on the money repaid within 30 days and has a $79 annual fee.
With The CEO Creative net 30 account, you can receive a monthly credit line with a limit of up to $3,500. You won’t be required to undergo any personal checks or provide any personal guarantee to open a net 30 account with The CEO Creative.
JJ GOLD
-Annual membership fee: $0
-Reports to: D&B, Equifax Business
JJ Gold International offers handmade jewelry, cosmetic products for men and women, and home décor products. You can also buy tools & accessories and men’s grooming products from this business. It charges no extra fees (monthly or annual) on your Net 30 account.
To qualify for JJ Gold International net 30 account, you must be a citizen of the United States or its territories and at least 18 years old. Your business should be at least 4 months old. Plus, JJ Gold will not conduct a personal check before opening your net 30 account but they will require a few documents to authenticate your account.
ULINE
-Annual membership fee: N/A
-Reports to: D&B and Experian
Uline offers a vast array of products, including packaging supplies, shipping boxes, food service products, safety warehouse supplies, personal safety equipment, and more. The US-based brand also offers same-day shipping to orders received before 6 PM.
The process of opening a net 30 account with Uline is simple. Uline will ask you to provide trade and bank references at the time of application, though you won’t need to provide your DUNS number or business bank account information. No personal checks will be carried out, either.
WHY TRADE CREDIT MATTERS
Trade credit is an arrangement where the buyer purchases goods and services without making immediate payments to the seller. Also referred to as a “commercial loan”, it’s an agreement between two B2B companies. Here’s why trade credit matters:
1. Gives your business a competitive edge: If your business could buy goods or services on deferred payment, it would have a competitive edge over rival firms that are paying upfront. Unlike them, you could order supplies even when your finances are unstable.
2. No cash needed upfront: Since you won’t have to pay cash upfront, you could buy the stock for peak season months in advance. Trade credit thus allows you to purchase stock in quieter months when cash flow may not be as high as in peak selling times.
3.Fuels business growth: Most businesses treat trade credit as a cash-free loan. And rightly so. It gives you access to working capital at no additional cost and allows you to sell goods on the supplier’s behalf, while also getting a neat profit for doing so.
4. Enhances your business’s reputation: Showing that your business is responsible enough to make regular payments against credit is one of the best ways to establish its reputation and convince the suppliers to treat you as a favored buyer.
4.Business Credit Cards: Another Easy Way to Build Business Credit Getting yourself a business credit card that reports to major commercial credit reporting agencies is one of the easiest ways to build business credit. Many new business owners think that their enterprise must be profitable to qualify, but that isn’t always true.
As long as you pay your credit on time and aren’t maxing out your card, a business credit card would help your enterprise achieve a high credit score. However, if your credit utilization is high, consider applying for a second business card so that you don’t max out either of them.
Here are a few business credit cards that could help you build credit:
-CHASE – Reports to Equifax, Experian and SBFE
-CITI – Reports to Equifax, Experian and SBFE
-DISCOVER – Reports to Equifax and Experian
-CAPITAL ONE – Reports to Experian and SBFE
Conclusion
Whether your company is already well-established or you’ve a startup just gaining steam, a Net 30 account will help your business achieve a good credit score. This, in turn, will make it easy for your business to qualify for a loan, enable it to receive better terms from suppliers and give it access to cash for expansion and growth. What more can you ask for!
