Net-30 Accounts Explained

A net-30 account lets your business buy now and pay the invoice within 30 days. It is the simplest form of vendor credit, and net-30 vendors that report are the standard first rung of the business credit ladder.

Why it matters

Net-30s are where business credit stops being theory. They are approvable for young companies, they build tradelines when they report, and they create the payment history that later unlocks cards and loans.

Key facts

• Net terms describe when payment is due: net-30 = 30 days from invoice, net-60 = 60, and so on.
• Many net-30 vendors approve new LLCs with little history; some ask for small prepaid first orders.
• A vendor extending net-30 terms is lending to you; treat the invoice date like a loan due date.
• Paying early both protects the relationship and, at D&B, scores higher than paying on time.
• Not every net-30 vendor reports; that question comes before every application.

In practice

1. Open two or three net-30 accounts with vendors that confirm they report to a business bureau.
2. Place small real orders; pay each invoice within the first week.
3. Keep invoices and payment confirmations; they are your tradeline paper trail.