Home Vendor Credit Credit Cards Business Loans Credit Builder
Home
Vendor Credit
Credit Cards
Business Loans
Credit Builder

Net 30 Payment Terms

Typical Net 30 Payment Terms Explained

Net 30 describes the amount owed (net) and the number of days which the net amount must be paid within (30). The typical net 30 payment terms are as follows, purchases can be made using credit but the full amount owed must be paid within 30 days. Payments made earlier than 30 days are welcome and sometimes even rewarded. Late payments will undoubtedly have a negative impact and are likely to make qualifying for additional business credit more difficult. Business owners attempting to build business credit should always pay their credit bills in full within 30 days or less.

Enter Your Info To Get Started
Check Your Score & Build Business Credit

Enter Your Business Name

Enter Your Email Address

Choose A Password


By creating an account you are confirming that you have read and agreed to our terms and privacy policy.

Pro Tip: Many vendors offer credit to business owners and it's usually pretty easy to qualify. Sometimes all you need are a few basic things that every business should have like a business phone number, business fax number, business bank account, etc. So even if you just started your business, you can usually get business credit accounts with vendors right away.


Think for a moment about how you built your personal credit. When you turned 18 you likely had no credit. Since store credit cards are easier to qualify for (sometimes all you need is a valid ID) you probably had a store credit card first. You may have even had several store credit cards from different stores like Walmart, Sears, Target, etc. If you paid your credit bills on time, that information was reported to the credit bureaus and a personal credit score (FICO) associated with your social security number began to increase.

When your credit score got high enough, you probably began to receive offers from credit card companies. If you accepted one or more of these offers and paid your credit card bills on time, your credit score continued to increase. Then when you were ready to buy your first car a credit check was probably run to see your FICO Score. If your score was high enough then you qualified for an auto loan. If you paid your auto loan on time you were probably able to qualify for a mortgage and so on. That same credit building system applies to business credit. You begin by applying for net 30 accounts with vendors, pay on time and gradually increase your business credit.

Not all vendors report the type of information that can help improve your business credit. Unlike personal credit, vendors are not required by law to report positive business credit information to the credit bureaus. If you are looking for vendors that do report positive credit information even though they aren't required to, use the Expense Matcher. You'll find the best vendors to use for fast business credit building. You can also use the Expense Matcher to match your regular business expenses with vendors offering those same items on credit.

Taking advantage of net 30 payment terms is a great way for a business to free up operating capital. If you are currently using cash to pay business expenses, start putting those expenses on credit. Then the money which would have been tied up on those expenses will remain available for one month. Since many business owners need more operating capital to grow their business, having that extra money for that extra month could help your business grow.

Vendor Credit Credit Cards Business Loans Equipment Loans Cash Advances Personal Guarantee
Corporate Structure Virtual Office Net 30 Payment Terms Tradelines DUNS Number PAYDEX Score
Expense Matcher Tradeline Tracker Credit Builder Contact Us

*You may already have existing credit scores which can affect your ability to build business credit. There is no one business credit score which is used by all credit grantors and lenders as the sole criteria to determine the creditworthiness of a business. Our scoring system exists to help business owners view and track the fundability or their business based on user submitted information. Credit grantors and lenders may create their own models based on information such as the type of credit and/or other funding an applicant is seeking. Additionally, there are credit scoring models created by credit bureaus and these may also affect your ability to qualify for business credit or other funding.

© 2014 - 2024 CorporateCreditScore.com