How Many Net 30 Accounts Do You Need to Build Business Credit?

Net 30 accounts are used to build business credit and increase business cash flow. To build business credit, you need five net 30 accounts that report to the business credit bureaus.

With a net 30 account, businesses buy goods and repay the full balance within a 30-day term. The vendors then report the account as a tradeline with business credit bureaus.

Our How Many Net 30 Accounts Do I Need guide will help you choose the right number of net 30 vendors for your business.

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Easy Approval Net 30 Accounts

The net 30 vendors below are easy to open accounts with and report to the various business credit bureaus. 

1. Office Garner

Office Garner is a must-have net 30 vendor. Office Garner sells reasonably priced, high-quality office products and other goods for any type of business. It reports to several different business credit bureaus, including Dun & Bradstreet, Experian, Creditsafe, and more. 

It’s easy to sign up for a net 30 account with Office Garner online. You must have been operating your company for at least 30 days before you apply. Opening a net 30 account requires paying a $69 one-time processing fee. In addition, your business must have a clean, non-derogatory business credit history.

Business Credit Bureau Reporting: Dun & Bradstreet*, Equifax Small Business, Creditsafe, Ansonia, National Association of Credit Management (NACM), and Small Business Financial Exchange (SBFE)

*Dun & Bradstreet reporting requires Office Garner's Credit Builder service.

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Recommended: Create an Office Garner net 30 account for free to start building business credit.

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2. Business T-Shirt Club

Business T-Shirt Club sells marketing apparel through its T-shirt club, which provides discounted rates to members. It is the only membership-based custom apparel printing option for entrepreneurs. 

Business Credit Bureau Reporting: Equifax Business, Credit Safe, Ansonia, and Cortera

Minimum Order Required for Business Credit Bureau Reporting: $250 minimum for blank clothing orders; custom design orders require a 12-item minimum.

Annual Membership Fee: $69.99 to maintain net 30 account credit terms.

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Recommended: Join Business T-Shirt Club’s net 30 program to start building business credit.

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3. Creative Analytics

Creative Analytics offers digital marketing services and tech products. Net 30 terms are available for all of the company’s store items and some of its services.

Creative Analytics extends credit lines of up to $12,000. This helps young companies establish higher lines of credit and build their credit faster.

Business Credit Bureau Reporting: Credit Safe and Equifax Business.

Minimum Order Required for Credit Bureau Reporting: $100

Annual Membership Fee: $79 to apply and maintain net 30 account credit terms.

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Recommended: Open a Creative Analytics net 30 account to start building business credit.

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See our guide Net 30 Vendors to Build Business Credit for more net 30 vendors to pick from.

What Are Net 30 Accounts?

Net 30 accounts are a type of business credit that lets you purchase items like office supplies or equipment and pay the invoice up to 30 days later. Essentially, a net 30 vendor extends you a 30-day line of credit.

Net 30 accounts are also known as vendor credit, trade credit, or supplier credit. Note that some net 30 vendors may require a new business to make an initial purchase before extending net 30 terms because of the company’s relatively short business credit history.

Recommended: Pick the best net-30 accounts for your business that help build business credit.

Why Do You Need Net 30 Accounts?

A net 30 vendor can help you establish business credit because it may report activity on your account to the major business credit bureaus. This is especially important for new companies and those that need to take out business loans

There are other reasons to use net 30 accounts besides building business credit for the first time. Net 30 accounts help you:

  • Manage Cash Flow: Net 30 assists with managing cash flow, which may increase or decrease at different times of the month. 
  • Calculate Expenses: Using net 30, you can budget more easily for startup expenses that vary from month to month, like consulting or printing fees. This is because you will know in advance how much you are paying your net 30 vendors.
  • Purchase Materials: Net 30 may allow you to pay for materials after you sell the product that those materials are used for.
  • Make Accounting Simpler: If you have 30 days to pay an invoice, this gives you time to confirm purchases, enter data into a purchase order system, and otherwise keep your accounting up to date.
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Learn More: Read up on the best business accounting software in 2022

Applying for Net 30 Accounts

Before applying for a net 30 account:

You will also have to provide the net 30 vendors with the contact information for your business.

Using Net 30 Accounts

It’s important to use your net 30 accounts properly in order to build business credit and establish a good business credit score. In particular:

Pay Your Invoices as Soon as You Can

Although you typically have 30 days to pay after the invoice date, don’t wait that long unless you have to. The sooner you can pay an invoice, the less debt you will have to hold onto and the less likely you will be to miss a payment. 

In addition, net 30 vendors often provide discounts for paying early. For example, a 2/10 Net 30 payment term provides a 2% discount if you pay an invoice within 10 days.

Make Sure You Can Afford the Payments

As with business credit cards and other forms of debt, don’t take out business loans that you can’t afford to repay on time. Late payments will subject you to penalties and will hurt your business credit score. Like business credit card late payments and fees to avoid, you have to be careful of slipping up and forgetting to pay your net 30 vendors. This can adversely hurt your business credit profiles.

Don’t Apply for Net 30 Accounts Using Personal Information

As a general rule, it’s best to apply using only your business information to avoid any impact on your personal credit.

Establish Long-Term Relationships With Net 30 Vendors

By making multiple purchases from net 30 vendors (and paying on time), you will build your business credit history.

Net 30 FAQs

What does 'net 30 terms' mean?

Net 30 terms are a "buy now, pay later" arrangement giving businesses 30 days to pay off an invoice for products they've already received. If the business honors this arrangement, paying off the debt within 30 days, there are no interest or fees to pay.

"Net 30" refers to the net amount of time that a business has to pay for an invoice or other payment before they are subject to late fees. This term is typically used in industries where payments are expected on a monthly basis, but some businesses may extend this concept to any percentage of the time, such as 60 days or 90 days.

A net 30 term often offers discounts to businesses that pay their invoices in full within a shorter period of time than 30 days.

How long does it take to build business credit with net 30?

Many creditors want to see a good credit history of at least three years, although some will be satisfied with one year. For new companies, creditors sometimes will look at the owner’s personal credit history. Learn about the quickest way to build business credit in our How to Build Business Credit Fast guide.

How does a net 30 account work?

Net 30 accounts are a type of payment terms in which the buyer has 30 days to pay for the products or services they received.

Generally, businesses (net 30 vendors) offer net 30 terms (trade credit) because they need to ensure that they get paid as soon as possible and can cover costs. Buyers also love these terms because it gives them more time to use a product before they have to pay for it.

How soon should you pay your net 30?

Normally, you should pay your net 30 invoices within 30 days of the invoice date to build business credit. Payments are sometimes due 30 days after purchases are made, work is complete, or some other event takes place. In any event, it’s a good practice to pay as soon as possible.

How long does it take for net 30 accounts to report?

The time it takes for net 30 accounts (i.e., trade accounts, net 30 vendors) to report to business credit bureaus is different for each net 30 vendor. It is important to pay these accounts regularly to maintain your business credit.

What are the main business credit bureaus?

There are three main business credit bureaus: Dun & Bradstreet, Experian Business, and Equifax Business. Through these, you can check your business credit reports.

Should I check all three business credit scores?

Checking your business credit report and all three business credit scores will help you know where you stand when applying for trade credit, a business credit card, or a business loan. Having a positive payment history is important to build business credit and maintain a good business credit rating.

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