Here’s our next term: “Net 30”. Net 30 refers to the credit terms your wholesale supplier extends to you. When your wholesale supplier types Net 30 on your order and invoice, this means you have 30 days to pay for that invoice. The advantage of such payment terms is that you have some time to sell all of the products on that invoice and actually receive the money before you have to PAY for the goods.
If you are new to that wholesaler, you cannot expect to get Net 30 terms from the start. Wholesalers base your credit terms on your business credit HISTORY, not your personal credit history. You begin by paying up front for your purchases with cash or credit card until you build a good purchase and credit history with your wholesale supplier. At that point you can apply for Net 30 terms from your wholesale supplier. The more business you bring them, the sooner you can request a Net 30 order.
Once your account is approved, you can begin to establish a business credit history. This will also help you get Net 30 terms with other wholesale suppliers more quickly.