Net 30 accounts: Everything you need to know
A Net 30 account is a 30 day trade credit on invoices for business purchases. If you participate in business purchasing, you’ve probably heard of the payment term Net 30 as a solution for handling cash flow. Also known as a Vendor/Supplier Tradeline and often used in business-to-business (B2B) transactions, Net 30 accounts mean that instead of paying via cash or credit card at the time of transaction, the buyer’s account has 30 days from the date of invoice to pay for the purchased goods or services. Essentially, the supplier is extending a line of credit (free money at no interest!) to their customer while effectively managing payments.
Suppliers offer different payment terms according to the needs of their buyers. Examples include Net 10, Net 15, Net 60, and even Net 90. Longer net terms can resemble short-term financing and often work well for raw material suppliers.
Like most contractual agreements, Net 30 billing should be established with clear expectations before any invoicing occurs. You can usually find payment terms detailed on the bottom of an invoice, or set with the due date as the last date of the Net term. The invoice you receive should always include both an invoice date and the due date, which is defined as 30 days later, including weekends and holidays.
For example, an invoice issued on March 15 (invoice date) with a Net 30 term must be paid by April 14 (due date). Most companies that offer Net 30 Accounts do so because it gives customers a reasonable payment timeline with a clear, easy-to-plan-for deadline. A win-win for both supplier and buyer.
Flexible cash flow - Managing cash flow, especially for small and mid-sized businesses, requires flexibility. Having 30 extra days, interest-free, to pay for your purchases gives your business extra breathing room to manage payments and figure out finances.
Working relationship - A Net 30 account builds trust between you and your supplier. This can translate to a positive working relationship when more flexibility is needed.
Establishing credit - Setting up a Net 30 account and successfully making payments can also help establish your business credit. Your supplier must report to a credit bureau in order for your invoice account to build a credit history.
Convenient purchasing - Procuring a product or service at your convenience when you need it, even when your cash flow is low, is possibly the most beneficial reason to take advantage of a Net 30 billing account.
Group purchasing organizations often negotiate payment terms on behalf of their participants. At Excelerate America, we understand the importance of flexible payment terms. That’s why we negotiated with ODP Business Solutions to provide 30 day net billing for members of our program, a much longer term than their standard Net 10 for non members.
There are three ways to set up a Net 30 account through our group purchasing program*:
- Are you a new member? Request invoicing when you first set up your purchasing account.
- Already have a purchasing account and want to add invoice billing? Contact your dedicated ODP Business Solutions rep to get set up.
- Don’t currently have a rep? Request help from Excelerate America’s team here.
*Please note that you’ll need to provide your accounts payable information and DUNS number to share with the credit team for review.
You’ll shop our negotiated pricing online just like usual with a Net 30 account. Here are a few tips to manage invoice payments:
- At checkout, select Credit Card or Account Billing for your order. This lets you pay for smaller one-time transactions via credit card when preferred.
- To pay your invoice online, use the bill management tool under Online Reporting on your logged in dashboard at odpbusiness.com.
- There you can also review your account, make payments, obtain invoice copies, and even dispute an invoice.
- Your designated accounts payable contact person will receive emails with invoice reminders, so your business can manage timely payments.
If you regularly participate in business purchasing, consider joining a group purchasing organization that lets you take advantage of a Net 30 account, or other favorable payment terms that meet your needs. This can be hugely beneficial and help you manage your cash flow, give your business payment flexibility, establish business credit, and ultimately improve your bottom line.
At Excelerate America we focus on helping small and medium-sized businesses save smarter on office supplies (and much more) through our partnership with ODP Business Solutions – this is Office Depot’s business division.
We actively negotiate on behalf of our Collective’s 40k+ members to ensure they always purchase with power. Here are a few of our program highlights:
- Net 30 payment terms
- Customized core list pricing on 1,800+ products
- Up to 55% off on office supplies, cleaning & breakroom, tech & more
- Up to 40% off on copy & print services
- Free shipping on $20+ orders
- Concierge service tailored to member needs
- Analytics around spend management
Ready to join the Excelerate America Collective? You can sign up for a free purchasing account to get started. Learn more about all the program offerings available to our members.
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