Net 90 Vendors to Help Build Business Credit in 2024

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Customers prefer net 90 vendors that offer longer 90-day payment terms than net 30 or net 60. But net 90 vendors are hard for smaller companies to find in most industries. 

What are Net 90 Vendors?

Net 90 vendors provide trade credit accounts with a 90-day payment term to approved customers. The customer must pay the vendor’s invoice on time without interest charges, enabling the vendor to receive the customer’s payment within 90 calendar days of the invoice date. Net 90 vendors may offer an optional early payment discount with the net 90 terms. 

How to Receive Net 90 Invoice Payment Terms

Businesses need to establish credit with vendors reporting payment history to credit bureaus to qualify for net 90 accounts. Certain industry vendors may offer net 90 terms. An example is net 90 wholesale vendors. Startups and small businesses start building business credit with net 30 vendors offering 30-day payment terms and net 60 vendors offering 60-day payment terms. 

Types of Vendors Offering Net 90 Accounts

Net 90 invoice terms, which have a longer invoice payment time, are not as commonly used as net 30 or net 60 terms. Net 90 vendors need to have strong cash flow, working capital, and external financing. Vendors don’t receive interest income if their customers pay the invoices timely within the credit terms. Therefore, most vendors offer shorter payment terms for invoices. 

Net 90 vendors may operate in specific industries like the wholesale garment industry. But these industries may offer shorter payment terms instead, like net 30, net 45, or net 60. 

Vendor credit term accounts aren’t limited to net 90. Trade credit from a vendor can be provided by net 30/60/90 vendors that fall into one of the due date ranges. 

Net 30 Vendors

Net 30 vendors offer 30-day credit terms, often combined with early payment discounts like 2/10 net 30. A 2/10 net 30 payment term gives customers the option to receive a 2 percent discount when paying an invoice within 10 days or pay the full amount of the invoice for the vendor to receive a payment within 30 days. 

Using net 30 accounts is useful for newer companies and small businesses building business credit when these net 30 vendors report payment history to credit bureaus. Consider using a list of net 30 vendors for building business credit. Examples of net 30 vendors include Quill, other office supply companies, Uline, Business T-Shirt Club, and Shirtsy. 

Net 60 Vendors

Net 60 vendors offer trade credit terms of 60 days for invoice payment. The net 60 payment terms may be combined with an optional early payment discount, as in 2/10 net 60. 

Sometimes new businesses without established business credit and two or three years in business need to offer personal guarantees from the small business owner and use the owner‘s personal credit score to receive net 60 credit terms.

In some cases, a personal guarantee on a business trade credit account is preferable to loading up their personal credit cards charging high interest rates. Getting business credit cards for a company with limited time in business falls into this personal guarantee category. 

Late Payment Fees for Invoices

Vendor payment terms may include late payment fees for customers relating to past due invoices. The interest rate for late payments is disclosed in the vendor’s credit terms on invoices and purchase orders (POs). Most vendors offer a grace period before charging their customers late fees. 

How Major Business Credit Bureaus Work

The primary business credit bureaus are Dun & Bradstreet, Experian Business, Equifax Business, and Creditsafe. Creditsafe is an international credit reporting agency. Businesses and  inquiring stakeholders like potential vendors, lenders, and existing competitors use credit bureau reports.  

Companies register with these major credit bureaus. Registration includes providing information about their business, including the Employer Identification Number (EIN) and type of legal entity. Businesses get an identifying number like a DUNS number for Dun & Bradstreet reporting. 

Vendors do a credit check when making credit account approval decisions after they receive credit applications from existing or new customers. These vendors may decline new businesses on credit without credit history and companies with cash flow problems. They’ll request upfront payment from these unqualified customers instead. 

Vendors report customer payment history to the credit bureaus. Credit bureaus prepare business credit reports with business credit scores, ratings, and suggested credit limits.

Some vendors report positive and negative payment history. Positive reporting helps companies build business credit when they pay vendor invoices timely. Other vendors only report their customers’ negative payment history. See a business credit vendors list to find some vendors that help build business credit with easy approval. 

What is a Tradeline?

Credit reporting agencies like Experian consider a tradeline to be each line item from a creditor describing a customer’s debt. A tradeline includes the payments on net terms accounts like those from net 30/60/90 vendors. A tradeline also includes experience with a bank line of credit or business loan from a lender.

Importance of Net 90 Vendors

Net 90 vendors are important because they let their customers have 90 calendar days (not business days) to pay invoices. This generous number of days in the payment term helps attract customers and can be a source of competitive advantage or a customary industry norm.

Vendors may be able to increase their pricing to cover any interest costs they pay on financing received to cover the 90-day payment term. 

Customers gain from net 90 vendor accounts by having longer to pay, which improves cash flow. With long 90-day terms, the customer may be able to collect their accounts receivable from a sale to their end-user before they need to pay the vendor. 

Because of the scarcity of net 90 terms, we don’t include a list of net 90 vendors in this article. 

Large and medium-sized companies may request and receive 90-day payment terms from their vendors. These vendors have negotiating power and good credit history.

Ask people in your industry business network and trade associations to discover which companies offer net 90 terms. Then find out from these recommended vendors whether your business can get net 90 payment terms. 

Keep your vendors satisfied and continue building good business credit. Send suppliers on-time payments from your business bank account using cost-effective electronic ACH payments in the U.S. Or choose a payment method that fits your business needs. 

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