10 Surprising Uses for Vendor Credit

What’s so great about vendor credit?

With vendor credit, it’s not only easier to get approved – it can help build your credit profile and gives you more time to pay for inventory & other supplies.

Having an extra 30-60 days to pay can be a huge benefit when it comes to growing your business. 

So What Are Net Terms?

Net 30 is one of the most common vendor credit repayment terms and simply means that you’re expected to pay the full amount of the invoice, within 30 days of the invoice date. Other common repayment terms include 20 days & 60 days.

This is a great way to buy the things you need for your business, extend payment time beyond 30 days without penalty, and avoid interest.

10 BENEFITS OF VENDOR CREDIT:

• Vendor credit is much easier to get approved for & startup friendly
• Conserves Cash Flow – By extending the time you have to pay for your suppliers by 30 or 60 days is what makes this such a powerful credit tool for businesses.
• Helps build your credit by getting some initial business credit accounts reporting to the credit bureaus. Even if they do not report, they can write a reference letter when you apply for credit stating that you are in good standing with them.
• Low Cost Financing – Vendor credit is the most affordable form of working capital.
• Easy to maintain – managing vendor credit does not require much work. Since this is a short-term financing tool there is little to manage making it easily maintainable.
• Can lead to more discounts (can also negotiate a discount with suppliers after you’ve been with them a while)
• Often comes with rewards that can add up over time
• Typically comes with less personal risk (many No-PG options)
• When it comes to paying for inventory, you can pay the vendor after you’ve sold the goods if you’re in a short-term, financially unstable period.
• Always have a guaranteed supply of inventory/goods

Vendor credit can be found in many different industries such as…

• Gas
• Hotels & Travel
• Furniture & Home Goods
• Hardware & Tools
• Office Supplies
• Computers & Electronics
• Packaging & Mail services
• Food
• Clothing
• Credit building services
• Auto parts & Services
• Amazon, Walmart, Sam’s Club, Target – (Sell almost anything)

Remember, vendor credit isn’t the GOAL – it’s a stepping stone…

Obtaining a loan or credit card can be challenging if you don’t already have some business credit history. Net 30 accounts are the bridge – helping you establish a credit history, which makes it easier to secure business loans, business credit cards, and other forms of business financing. 

If you want a program that’ll take you step-by-step through the process of establishing strong corporate credit for your company quickly…

with dozens of proven, time-saving tricks you won’t find anywhere else…

Get the Corporate Credit Secrets Program Now

Curious what else you can do with corporate credit?  Be on the lookout for our email tomorrow, we’ll show you some pretty cool things owners are doing.

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