HD Supply Net 30 Review
One of the best ways for a new small business owner to build business credit is by acquiring net 30 accounts. Since they’re usually tier 1 vendor tradelines, they’re often accessible to those without very much business credit history.
If you'd like to add another tradeline to your credit reports, this review of the HD Supply net 30 account will help you determine whether it’s worth pursuing.
Our HD Supply Net 30 Review
The HD Supply net 30 account is a good tradeline for those looking to build business credit with Dun & Bradstreet (D&B). Since D&B is arguably the most popular business credit bureau, it’s a good idea to prioritize that credit report.
Fortunately, even new business owners can qualify. There’s also no membership or application fee, and HD Supply sells products many companies would find beneficial. However, the vendor doesn’t report to the other business bureaus.
If you’re thinking of applying, let’s look at these primary considerations in more detail:
- Reports to Dun & Bradstreet
- Available to New and Established Businesses
- Purchase Industrial Tools, Supplies, and Equipment
- No Membership or Application Fees
You should always pay close attention to the credit bureaus a vendor reports to when you consider applying for its credit account. Ultimately, your goal should be to have several tradelines on each of your major credit reports.
As a result, the more business credit bureaus a net 30 vendor reports to, the more beneficial it’ll be. Unfortunately, HD Supply only reports its net 30 account to D&B. It won’t show on your Equifax Business or Experian Business credit reports by default.
As a result, whether or not the account is worth pursuing for business credit-building purposes may depend on your current tradelines. If your D&B profile is the only one that’s currently thin, you might want to consider applying.
Otherwise, you may be better off focusing your resources on vendors that also report to one or more other major business bureaus, such as Crown Office Supplies, Summa Office Supplies, or Business T-Shirt Club.
If you have good personal credit, you can also consider a business credit card to help manage your cash flow. Alternatively, you could just sign up for eCredable Business Lift. We’ll report each account you link to Equifax Business and Creditsafe.
Another factor to consider before applying for a net 30 account is the issuing vendor’s goods or services. Since you can only use the credit line at their store, you should apply for tradelines with companies that sell something you already need.
Otherwise, you’ll have to buy irrelevant things to establish your company’s credit history. That’s a significant waste of money when you could just use eCredable to make vendor tradelines out of the expenses you already pay.
HD Supply is a subsidiary of the Home Depot and sells similar products. That includes a mix of tools, supplies, and equipment for various industries like healthcare and construction. For example, some of its products include:
- Furniture and fixtures like desks, ceiling fans, and lamps
- Office supplies like pens and pencils, file folders, and envelopes
- Appliances like coffee makers, microwaves, and vacuum cleaners
Fortunately, there’s such a variety in the HD Supply catalog that it’s very likely you’ll find something you need for your business. Some goods are also relatively cheap, so you don’t have to break your budget to build credit.
Building business credit with vendor tradelines is often a surprisingly expensive strategy. Many companies demand an application fee when you sign up for their account or charge a recurring membership fee to maintain access to it.
HD Supply is one of the few vendors that only requires you to pay for the cost of the goods you purchase. Otherwise, there are no costs associated with its tradeline. There isn’t even a minimum order requirement on your first order.
However, you’ll incur late fees if you fail to pay off your balances on time. HD Supply charges a minimum of $2 or 1.5% per month (18% per year) for all past-due invoices, so paying late will cost you money and hurt your credit.
In addition, you may only be able to make payments toward your net 30 account via cash, check, money order, or ACH. HD Supply might not let you pay off your balances with a credit card or any other payment method that requires them to incur a fee.
In addition to being beneficial to your credit, a net 30 account must be accessible to be worth pursuing. You generally don’t want to waste your resources on tradelines you have little chance of qualifying for, especially in your early days.
You’re only going to waste your resources, which are usually pretty limited for new businesses. And even if a vendor doesn’t charge you an application fee, requesting a net 30 credit term still takes time and effort that you could spend elsewhere.
Fortunately, new and established businesses can qualify for HD Supply’s net 30 account. It doesn’t seem to have any explicit time-in-business requirements and some small business owners with no other credit report having qualified for accounts.
However, that doesn’t mean you’re guaranteed to qualify for a credit line. HD Supply will check your business credit when you apply and may reject your application if it finds you have a history of late payments or defaults.
How To Qualify for an HD Supply Net 30 Account
Unfortunately, HD Supply doesn’t disclose the qualification requirements for its net 30 terms. However, you should generally expect to need at least a clean business credit history. Having a few positive vendor tradelines in your credit reports should also help.
If you think you have good enough business credit to qualify, you can fill out an application for the HD Supply net 30 account online. It will require that you provide the following information:
- Customer Information: This section asks you to share your name, address, industry, and requested credit limit. Asking for a higher credit limit may hurt your chances of qualifying, so consider starting with $500 to $1,000.
- Owner or Management Information: In this section, you must provide your company’s business structure and legal name. If you’re in real estate, you should also select the reporting structure of your property management arrangement.
- Invoice Delivery Method: Here, you must request that HD Supply send your invoices by email, fax, or some other method and share the contact information they need to do so.
- Application Authorization: Finally, you’ll need to confirm that you have the authority to apply for credit in this company’s name. You must give your job title and email, then sign the application.
While this is the only information you must provide to submit your application, there are optional details you can add that may improve your chances. For example, you can share a commercial bank reference.
If you do, HD Supply may contact the branch to ask about your financial standing. If they respond positively, it could help you qualify for 30-day payment terms. Regardless, you should receive a response to your application in the next few business days.
Use eCredable to Build Business Credit
Signing up for net 30 accounts is an effective way to build business credit, but it’s usually not the most efficient. Not only do you have to purchase goods routinely from each issuing vendor, but you’ll also often incur membership and application fees.
In addition, it’s likely that some of your applications will fail, especially as you start moving to higher-tier credit lines. Net 60 vendors and net 90 vendors often have stricter qualification requirements.
As a result, it can take many months or even a few years to build a foundation for your business credit the traditional way. However, eCredable offers an alternative method that can save you time, money, and effort.
With our Business Lift program, you can transform an unlimited number of recurring expenses you’re already paying into vendor credit accounts for just $19.95 per month! We’ll report all your activities to Equifax Business and Creditsafe.
In addition, you can report up to 24 months of payment history for each account you connect. That lets you add years of credit history to your business credit reports overnight, which is one of the only ways to increase your scores rapidly.
To top it all off, we’ll also report your eCredable subscription to Equifax Business, Creditsafe, D&B, and Experian Business. Our studies show this tradeline alone is enough to increase your business credit score by up to 40% in three months on average!
Sign up for eCredable today to build your business credit quickly and affordably!