Home Depot Net 30 Review
Vendor tradelines like net 30 accounts are an effective way for small businesses to build credit. They’re easier to qualify for than financial tradelines like a business loan or credit card and don’t require you to take on fixed debt payments.
However, not all vendor tradelines are right for every business. This net 30 vendor review will help you determine whether it makes sense to apply in your circumstances.
Our Home Depot Net 30 Review
This net 30 account, also known as the Home Depot commercial account, is an excellent option if you qualify. It reports to all three major business credit bureaus and charges no mandatory fees.
In addition, you’ll receive a 2% discount for paying within the first 20 days of your credit term. New businesses may struggle to meet the eligibility criteria, but they can improve their chances of approval by signing a personal guarantee.
If you’re interested in applying, here are the primary factors you should consider:
- Reports to All Major Credit Bureaus
- Helps Buy Home Improvement Products
- Pay Discount and No Mandatory Fees
On a side note, we appreciate that this vendor complies with the California Supply Chain Act to ensure corporate responsibility when sourcing supplies, meaning nothing comes from forced, prison, or human trafficked labor.
To build a trade credit foundation, you should aim to have multiple vendor tradelines on each business credit report. As a result, it’s best to pursue accounts that report to more than one bureau at a time.
Fortunately, Home Depot Inc reports to each major business credit bureau, which includes Dun & Bradstreet (D&B), Equifax Business, and Experian Business. That makes it an invaluable addition to your credit mix.
The business account generally won’t show up on your personal credit reports with Equifax or Experian. However, that could change if you sign a personal guarantee and pay late or default on the account.
Another critical factor to consider before applying for a net 30 vendor’s tradeline is what they sell. Since you must use a credit line to build credit with it, and you can only use a vendor’s account at their store, you should target those offering something you want.
Otherwise, you’ll potentially spend a significant amount of money on unnecessary goods or services. Fortunately, this store sells home improvement tools, supplies, and equipment, so you can probably find something useful in its catalog.
For example, that includes cleaning supplies like paper towels, appliances like refrigerators, and building materials like wood planks. Whether you’re in the construction business, serving government customers, or working from a regular office space, there's something for you.
And with convenient delivery throughout the US, Canada, Puerto Rico, Australia, and the UK, you can get the supplies you need while paying standard carrier rates.
Here’s a list of helpful links:
Net 30 accounts often charge application fees and recurring membership costs on top of what you pay to purchase goods or services when boosting cash flow. However, like HD Supply, this vendor doesn’t charge anything for its commercial net 30 account. It doesn’t even accrue interest.
In fact, Home Depot stores reward commercial account cardholders with a 2% discount on each invoice if you pay your outstanding balance within 20 days. However, you may incur a flat fee each time you pay after the due date.
Note that these credit services typically provide net 30 terms, but some qualified borrowers may be eligible for net 60 payment terms if they meet the necessary criteria.
How To Qualify for a Home Depot Vendor Account
To apply for an account, visit the company’s online credit center, and submit a digital application. Be careful not to select their personal or business credit cards — the Home Depot credit card and the Pro Xtra Credit Card. The latter is its commercial revolving charge card.
Once you're in the right place, you’ll need to provide the following information about your business:
- Legal business name, address, and phone number
- Billing contact name, email address, and phone number
- Legal business structure, such as corporation or partnership
- Net sales, annual net earnings, number of employees, and time in business
Next, you’ll need to share some personal information. In addition to basic contact details, you have to provide your Social Security Number and annual net cash. You should also have a chance to set up an additional authorized buyer.
Finally, you must decide to apply with or without a personal guarantee. While technically optional, this retailer recommends that you do so if you’re a new small business owner. You may not qualify without it if you meet any of the following requirements:
- Employ fewer than 10 employees
- Do business as a sole proprietorship or partnership
- Have been incorporated for less than three years
- File as a corporation but have less than $2M in annual revenue
Many net 30 accounts require a personal guarantee, so signing one isn’t the end of the world. Just know that this supplier can pursue your personal assets and earnings if you default on the account.
Once you submit your application, they’ll check your business credit score. If you're approved, you'll receive an account with a credit limit of at least $1,000.
For assistance, visit the customer service center.
Use eCredable to Build Business Credit
Opening a bunch of net 30 accounts is the traditional strategy business owners use to establish a foundation for their business credit scores. However, it’s not necessarily the most efficient way of doing things.
Not only do you have to make regular purchases you might not need, but you’ll also incur fees to access certain accounts. In addition, you’ll probably encounter rejection letters once you start applying for tradelines with net 60 vendors and net 90 vendors.
As a result, building business credit using the traditional method takes a surprising amount of time, effort, and money. Fortunately, eCredable can offer a much more efficient way to build business credit.
With our Business Lift program, you can transform an unlimited number of recurring expenses into vendor tradelines for just $19.95 per month! We’ll report them all to Equifax Business.
In addition to your ongoing activities, that includes up to 24 months of payment history for each account. That means you can immediately establish years of credit history, one of the only ways to boost your scores overnight.
To top things off, we’ll also report your monthly eCredable subscription payment to all three major business credit bureaus. Our analysis indicates that it should raise your scores by 40% on average in just three months!
Sign up for eCredable today to start building your credit in the most efficient way!