Vendor Credit

  • Post last modified:August 29, 2023

In the business credit world, a Vendor is a company that sells products and services and then send you an invoice for those products and services. You typically have a certain number of days from the date of that invoice to pay in full. Those days are specified in “Net” terms (i.e. Net30, Net60, Net90, etc.). This means you have that number of days to pay that invoice in full.When ordering from these vendors make sure you ask if they report to the business credit bureaus and, if so, which one(s). When ordering from these vendors remember the following:

  1. Some vendors require and annual fee
  2. Some vendors don’t report to all three credit agencies (Dun & Bradstreet, Experian Business, Equifax Business)
  3. Some vendors require you have multiple purchases before reporting
  4. You need four or more orders from the vendors 
  5. Order small items from each of these vendors, but make sure it is at least $75 worth
  6. Order items that you are actually going to use for your business
  7. Don’t order more items than you can pay for in two weeks

The earlier you pay your invoice, the better your credit rating. For example, if you pay 21 days after invoice date your rating will be better than if you pay 30 days from date of invoice. If you want to learn more about building business credit, go to the following