Amazon Net 30 Review
Qualifying for the credit accounts you need to build business credit can be challenging as a new business owner. As a result, most start with net 30 accounts, which are typically low-tier vendor tradelines and relatively accessible.
However, not all net 30 accounts make sense for everyone, as they each have unique terms and conditions. Let’s review the Amazon net 30 account, which it calls “Pay by Invoice”, to help you determine whether it’s worth applying for in your circumstances.
Our Amazon Net 30 Review
The Amazon net 30 account isn’t the best choice for those looking to build business credit. Unfortunately, Amazon doesn’t report the tradeline to any business credit bureau.
However, the extended repayment terms may still be worth pursuing if you’re a business owner who frequently shops at Amazon. The account is free, and Amazon obviously has a lot to offer.
If you’re thinking about applying, here are the primary factors to consider:
- Doesn’t Report to the Credit Bureaus
- No Mandatory Application or Subscription Fees
- Can Upgrade to Extend Payment Term
- Shop Amazon’s Uniquely Diverse Catalog
When you’re analyzing a net 30 account as a credit-building tool, the most significant consideration is which of the major business credit bureaus the issuing vendor reports to. After all, it can only contribute to your scores if it appears in your credit reports.
Unfortunately, Amazon doesn’t report its net 30 account to any of the major business credit bureaus. It generally won’t appear in your credit history or benefit your scores, though Amazon may report you for delinquencies or defaults.
As a result, Amazon’s net 30 account is only useful for extending your repayment term. If your goal is to build business credit, you should focus on other vendors who report to more of the major bureaus.
For example, the Crown Office Supplies net 30 account is one of the few to report to all three, including Equifax Business, Experian Business, and Dun & Bradstreet (D&B).
Many net 30 accounts carry application or membership fees that can make them surprisingly expensive. For example, you must pay a $99 fee and buy at least $100 worth of goods to apply for the Quill net 30 account.
These costs can add up quickly, especially since you typically need at least half a dozen net 30 accounts in each business credit report to lay a sufficient foundation for your business credit scores.
Fortunately, that’s not the case with Amazon’s Pay by Invoice. It might not be able to help you build business credit, but it doesn’t cost anything to apply for or retain access to the account.
Amazon’s free Pay by Invoice account offers net 30 terms by default. However, you can purchase an Amazon Business Prime subscription (separate from Amazon Prime) to extend your repayment term significantly.
First, you can upgrade to net 45 terms by paying for either the Small or Medium tiers, which cost $499 and $1,299 per year. If you’re willing to pay $10,009 per year for the Enterprise subscription, you can access net 60 terms.
Paying for a Business Prime membership also has other benefits, including making you eligible for additional rewards and longer repayment terms with the Amazon Business Prime American Express Card.
If you qualify for the Amazon business card, you can choose between 5% cash back and up to 90 days of interest-free financing. Notably, Amazon’s business credit card does report to D&B, unlike the Pay by Invoice account.
Because Amazon doesn’t report its net 30 account to the credit bureaus, it’s not helpful for building business credit. However, Amazon offers such a diverse mix of products that it may still be worth applying for Pay by Invoice.
Amazon connects you with hundreds of thousands of suppliers, so there’s no end to the products you can buy. There are supplies for almost every industry, ranging from real estate construction to food service and hospitality.
If you expect to purchase goods from Amazon Business often anyway, an extra 30 days of interest-free financing can’t hurt your cash flow.
Amazon Net 30 Account Requirements
While the Amazon net 30 account won’t help you build business credit, it may still be worth having if you expect to buy regularly from the vendor. If you’re interested, register for an Amazon Business account.
Start the process on the business version of the Amazon website by supplying your name, email, and password. Amazon will email a code to verify your account, then repeat the process with your phone number.
Finally, you’ll have to provide some background details, including your legal entity type and business address. Once you click submit, Amazon will need three days to verify your information.
During that time, it will also assess your eligibility for Pay by Invoice. That may involve reviewing your business credit reports and any previous Amazon purchases. If you’re approved, you’ll receive an email inviting you to activate your credit line.
As a new Amazon Business customer, you'll have a limited time to activate Pay by Invoice. Wait too long, and Amazon will reduce your credit line’s limit to zero. You can request an increase later, but Amazon will need three days to reassess your eligibility.
Use eCredable to Build Business Credit
Signing up for multiple net 30 accounts is the slow and steady way of establishing business credit. Once you build a positive payment history with them, you can qualify for higher-tier vendor tradelines and financial tradelines.
While there’s nothing wrong with slow and steady, there is a more efficient way to build business credit with eCredable’s Business Lift program. It lets you transform an unlimited number of your existing expenses into vendor tradelines.
After you connect your eligible accounts to our software, we’ll report them to Equifax Business and Creditsafe. In addition to your ongoing payments, that includes up to 24 months of payment history, helping you establish years of credit history overnight.
Sign up for eCredable today and take the shortcut to good business credit!
Learn More: You need more than one net 30 account in each credit report to establish your business credit score the traditional way. If you’re looking for more, check out our reviews of some other popular options:
- Uline Net 30 Review
- Grainger Net 30 Review
- Creative Analytics Net 30 Review