Net 30 Accounts Overview
A “net-30 account” means customers can pay in full within 30 days after the invoice date. These accounts have other names like trade credit, vendor lines of credit. If an invoice is due March 1st, you would need to pay by March 31st. Some net-30 accounts charge fees, others do not. Net 30 accounts allow you to build business credit. Paying bills on time helps improve your credit score.
Becoming a Net 30 Vendor
To become a net 30 vendor:
- Have customers fill out a credit application
- Check customer references
- Check customer credit reports
Required Steps
Before applying for vendor credit:
- Get an EIN from the IRS
- Register your business with your state
- Get a DUNS number if you don’t have one
- List your business phone number with directory assistance
Managing Net 30 Accounts
Using a service like Resolve can help manage net 30 accounts. This makes it good for both vendors and buyers.