How to Increase Business Cash Flow With A Net-30 Account
Having a net-30 account with your vendors can be a smart way to manage your business cash flow. The biggest benefit? It gives you more time to pay for goods or services, which means you have more time to collect payments from your own customers.
In this post, we’ll break down what a net-30 account is, why it’s useful, where to find vendors, and how to get started.
Related:
- Cash Flow vs. Profit
- How Businesses Can Establish Credit in 7 Simple Steps
- 3 Reasons Why Your Business Needs a DUNS Number
What is a Net-30 Account?
A net-30 account gives you 30 days from the invoice date to pay after purchasing a product or service. It’s essentially a form of short-term credit.
Some vendors also offer net-15, net-60, or even net-90 terms. Often, you’ll need to make a few initial purchases before a vendor offers extended terms.
Note: Most vendors don’t check your personal credit unless you’re a brand-new business.
Why is a Net-30 Account Useful?
Net-30 accounts are valuable for several reasons, especially if you’re juggling incoming and outgoing payments.
- Improves cash flow: Net-30 terms give you time to collect from customers before your payment is due. That can help prevent cash flow gaps without needing to rely on a credit card or business loan.
- Build Business Credit: Many net-30 vendors report your on-time payments to business credit bureaus like Dun & Bradstreet, Experian Business, and Equifax Small Business.
On-time payments = better business credit = better funding options. - Discounts offered for early payments: Some vendors offer a 5–10% discount if you pay before the 30-day term. Over time, those savings add up.
Where Can I Find A Net-30 Vendor?
Start with your existing vendors, ask if they offer net-30 terms. Some may agree with a simple invoice note (“Payment due in 30 days”).
If you want vendors that report to credit bureaus, here are some popular options:
- Crown Office Supplies: Office goods, tech, snacks.
- Central Restaurant Products: Equipment, furniture, and kitchenware for food businesses.
- Uline: Packaging, shipping, and warehouse supplies.
- Grainger: Tools, industrial, plumbing, janitorial.
- Quill: Office, cleaning, and medical supplies.
Tip: Check if the vendor is a “data furnisher” (able to report to credit bureaus) before applying.
What Should I Do Before Applying for a Net-30 Account?
Before applying for a net-30 account, make sure you have:
- EIN (Employer Identification Number): Apply for free on the IRS website
- DUNS Number: Get yours from Dun & Bradstreet
- A legal business structure (LLC, Corp, or registered sole prop)
These details help vendors verify your business and determine your creditworthiness.
Need Help Building Business Credit or Cash Flow?
Whether you're just getting started or want to level up your credit profile, Skip can help.
- Use your Skip Dashboard to stay on top of funding options
- Access business credit-building tools
- Join Skip Premium