Many wholesale suppliers will extend credit offering, “Net 30”, which simply means payment in full is expected 30 days after merchandise is delivered. Often, a wholesale supplier will reward the buyer with additional terms if an invoice is paid in full within a shorter time frame. For example, 2% 10, net 30 would give you, the buyer, a 2% discount if if your payment is received within 10 days of the delivery of your purchase. Each wholesale supplier who extends in-house credit offers different terms, so make sure you understand the terms under your account before buying.

You must apply for a supplier credit accounts often by faxing in a credit application. Your wholesale supplier will offer an application asking some basic information including, but not limited to:

1. Business Name/Address/Phone
2. EIN (Employer Identification Number) or Social Security Number (Sole Proprietors)
3. Expected purchasing volume monthly/annually
4. References from other wholesale suppliers – Who have you purchased from?
5. Signature authorizing the supplier to run your credit report

Once you have faxed in your application expect up to seven to ten days for approval and account set up. You will be given an account spending limit, which will be reviewed periodically by your supplier and possibly increased based upon your historical ability to meet account terms. Once your credit accounts are set up make sure to protect the power of business credit by paying your invoices on time and early if possible.

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