5 Unique Net 90 Vendors for Building Business Credit
by Alexandru Tanase Feb 06, 2023
Share On:Table of Contents
- What is a Net 90 Vendor Account?
- Finding Net 90 Vendors and Cash Credit Lines - Is it Challenging?
- Net 90 Vendors: Finding Them and Qualifying
Net 90 vendors refer to businesses that allow you a three-month payment period for your credit card balance or invoice. Not all businesses offer these terms. It's important to note that net 90 differs from net 30 accounts. It's not necessarily one option being better than the other. As for obtaining net 90 terms, it may depend on your creditworthiness and negotiations with the vendor.
Please note that this information may contain affiliate links to products, and we may receive compensation for purchases made through these links.
What is a Net 90 Vendor Account?
Net 90 vendor accounts refer to a payment term where the customer has 90 days to pay their credit card balance or invoice. This is in contrast to net 30 accounts where the payment period is only 30 days.
Having a three-month payment term can be advantageous for customers, but it may not be accessible for startups or businesses with poor credit. Vendors are cautious in offering net 90 terms as it may impact their cash flow. Therefore, they will carefully review a customer's credit history and possibly conduct a hard credit pull before granting the terms.
To increase the chances of approval, it can be helpful to provide trade references or demonstrate healthy cash flow and a good credit score. If you have been working with Biz Credit 365 to build business credit, net 30 vendors may also ask for trade references.
Net 90 can apply to both credit card and invoice payments, and some net 90 vendors may offer an early payment discount. Keep in mind that vendors also have bills to pay.
Finding Net 90 Vendors and Cash Credit Lines - Is it Challenging?
Yes, net 90 vendors and cash credit lines are less common than net 30 accounts and can be harder to find. Qualifying for a net 90 account or a cash credit line is also more challenging than for a standard net 30 account.
Vendors may not openly advertise their net 90 payment terms, as a longer payment period can impact their cash flow if payments are late. However, it may be possible to negotiate these terms with a vendor after being a customer for a while and having a good business credit report.
If your small business has a good payment history, the vendor may be willing to extend net 90 invoice terms or offer a cash credit line to keep your business.
Building business credit fast may not result in finding net 90 vendors or cash credit lines immediately, but looking at new businesses may lead to finding such a vendor or cash credit line provider. It's worth noting that none of the three vendors we found outside of Biz Credit 365 had been in business for more than five years.
Net 90 Vendors: Finding Them and Qualifying
In our Biz Credit 365, we found two vendors that offer credit terms of net 30, 60, or 90. However, when getting a credit card through them, you may start with net 30 payment terms. We also found three other vendors through some creative searching. It may take some time to prove your worth and get the desired term.
Vendor 1: Lenovo
Lenovo sells electronics such as servers, smart devices, phones, PCs, tablets, and more. They report to Experian Business and the Paynet business credit bureau. No personal guarantee is required and financing or leasing options are available. To qualify, your business needs to have a lending ability, a good business credit history (minimum of two years in business), an IRS EIN, a bank account, and all necessary licenses. Your business address must match everywhere, including the D&B website (even though they don't report to Dun & Bradstreet). To meet Lenovo's net 90 requirements, your business should have at least 20 employees and a website. Your business credit profile will be judged based on your business credit.
Vendor 2: Dell
Dell sells computers and accessories for businesses of all sizes. Their Dell Business Credit account is a revolving line of credit for financing equipment purchases. They report to Dun & Bradstreet every quarter and offer net 30, 60, 90, or revolving payment terms. No personal guarantee is necessary. Dell will rely on your business credit score and business credit profile when determining approval. To qualify, your business needs a lending ability, at least two years in business, a matching business address (with the Secretary of State and IRS records), an EIN from the IRS, a D-U-N-S number, and a good D&B PAYDEX business credit score of 80 or better.
Vendor 3 – Bzaar
For net 90 terms outside of our Business Finance Suite, check out Bzaar, a business credit building program. Bzaar works to help small and medium businesses digitally buy wholesale products from South and Southeast Asia.
They serve as an international online wholesale platform that helps small businesses seamlessly source unique products directly from value-based brands at the best prices. To access wholesale pricing, you must purchase a minimum number of products. Their offerings include kitchen tools, jewelry, and throw pillows at wholesale prices.
Bzaar offers net 90 terms to let you inspect the quality of your products and try them in your store before paying. Your net terms limit will be determined based on your business type, size, location, and other factors. If you exceed your credit limit with your purchase, you will be asked to pay the balance in another manner.
Vendor 4 – Obey Business
Obey Business offers marketing materials and services and has a business credit building program. They offer a subscription trade account (their Business Credit Lifter plan) with a net 30 term, net 60, or net 90 terms.
Obey reports to Dun & Bradstreet, Experian, Equifax Business, Innovis, and CreditSafe.
Their net 90 plan costs $98 per month and is recommended for corporations, LLCs, and nonprofits looking to add Tier 3 business credit vendors. This is an actual trade line. The net 90 plan includes a $15,000 trade line with access to their preferred funding partners.
The only difference among the plans, apart from the payment terms, is their monthly costs and the size of the trade line. The net 30 terms are $48 per month and come with a $5,000 trade line. The net 60 plan is $68 per month with a $10,000 trade line.
To qualify, you must be in business for at least 90 days with a positive credit rating.
Vendor 5 – Mobile Welder
Mobile Welder is a niche vendor located in Senoia, Georgia, servicing parts of Georgia and Alabama. They offer net 30, net 60, and net 90 terms, at varying pricing schedules for their welding services.
Net 30 vendor terms are billed at emergency rates, currently $200 per hour. Net 60 is billed at three times the scheduled rate. However, the scheduled rate is not specified. Net 90 is billed at five times the scheduled rate. The company also offers discounted additional labor rates for various reasons, such as booking in advance.
How to Negotiate Net 90 Terms to Build Business Credit
Negotiating net 90 terms can be challenging, but approaching it with a strong and non-urgent stance can increase your chances of success. Building a good relationship with the vendor and understanding their business can also play a key role in the negotiation process. If you have access to alternative vendors, you may have more bargaining power.
Be honest and reasonable in your negotiation, and recognize that you may not get the exact terms you want right away. However, you can always try again in the future. Keep in mind that net 90 terms can be difficult to come by, and vendors may be hesitant to wait three months for payments.
Takeaways: Net 90 terms can be a valuable tool for building business credit, but they may not be easy to secure. Evaluate your bargaining power, be honest and reasonable in your negotiation, and keep in mind that the terms must be mutually beneficial.
Social Links:
Social Links: