Best Net 90 Vendors in 2023
Extended repayment terms can significantly improve your small business’s cash flow and help you build business credit. Net 90 terms are one of the best arrangements available, giving you even more time to pay than net 30 or net 60 terms.
If you’re interested in working with net 90 vendors, here’s everything you need to know about them, including how they work, where you can find them, and how best to negotiate with them.
What Are Net 90 Vendor Accounts?
Net 90 vendor accounts are a type of trade credit you can open with a company you do business with, such as a supplier. These companies don’t specialize in extending financing but offer credit arrangements to sufficiently qualified clients.
A vendor account with net 90 payment terms gives you up to 90 calendar days of interest-free financing. There may also be discounts for early payment, such as 2% off for paying within the first 30 days.
Having 90 days to pay off each invoice can improve your cash flow immensely. The ability to defer payment for up to a quarter of the calendar year gives you incredible flexibility over how and when you deploy your working capital.
For example, say you have a seasonal business with sales that decrease in the winter and pick back up again sometime in the spring. You need to buy a shipment of inventory during the slow period so it arrives before the busy season begins.
With a net 90 vendor credit line, you’d have plenty of time for sales to pick up and replenish your cash reserves before payment comes due.
In addition to the financial benefits they offer, net 90 vendors often report your tradeline to a business credit bureau. That adds the account to your business credit reports, which builds your business credit score and helps you apply for additional financing.
Net 90 Vendors
Generally, securing net 90 payment terms requires good business credit and healthy finances. If you have the qualifications, here are some of the best vendors to consider in 2023.
Lenovo is one of the world’s foremost technology companies. It provides useful products and equipment for businesses, including laptop computers, monitors, accessories, and software.
Lenovo Financial Services (LFS) offers financing options for qualified businesses, including arrangements that offer 90 days with no payments, followed by low monthly installments.
To qualify for the extended credit term, you must meet the following requirements:
- Have ten or more employees
- Be in business for at least two years
- Request a minimum of $4,000
- Be a U.S. commercial customer
In addition, you must undergo a business credit check and meet Lenovo’s credit history requirements. These are undisclosed, but you can expect Lenovo to look for at least five or so positive vendor tradelines and no late payment issues.
Vendor Link: Lenovo Financial Services
Dell is another one of the world’s leading technology companies. It sells many of the same products Lenovo does, including laptops, desktops, workstations, servers, and monitors. Choosing one over the other is often a matter of personal preference.
Dell also offers a financing arrangement to businesses it calls Dell Business Credit. It’s a revolving line of credit that accrues no interest if you pay your balance in full within the first 90 days for certain purchases.
However, if you don’t pay off your invoice by the end of the promo period, interest will accrue from the transaction posting date. You’ll have to start making minimum monthly payments like you do with credit cards.
Fortunately, you can apply for the account using your personal credit or business credit score, which makes it an attractive net 90 option for new small business owners.
Vendor Link: Dell Business Credit
Bzaar is a wholesale digital marketplace that offers an eclectic mix of artistic products. The platform lets you buy from vendors worldwide, including jewelry, fashion items, home decor, and kitchenware sellers.
Since shipping times are longer than usual for Bzaar, it offers net 90 payment terms to let customers review their products and try them out in their stores before paying for them.
Unfortunately, you must be a brick-and-mortar store to apply. And in addition to your financial and credit information, your account terms limit will depend on your business type, size, and geographic location.
Vendor Link: Bzaar Net Terms
Obey Business offers services that help small businesses with various aspects of their marketing. For example, that includes a business card and logo design, social media management, and market research with SWOT analysis.
Obey also offers business credit building as a service. For $98 per month, you can buy a net 90 vendor tradeline with a $7,500 credit limit. Even better, Obey Business reports to Experian Business, Equifax Business, Innovis, Creditsafe, and Dun & Bradstreet.
The account has no qualification requirements, and you don’t need to undergo a credit check to apply. You can sign up online and maintain the tradeline for as long as you’re willing to pay the monthly fee.
Vendor Link: Obey Business Credit Pricing
If you happen to live near Atlanta, Georgia, you may have access to one more net 90 vendor tradeline through Mobile Welder. The business provides welding services to clients in both Alabama and Georgia.
If you’re in the area and need welding services, you can elect to pay your bill over a net 90 payment term. However, you’ll pay a lot more for the work, as Mobile Welder bills net 90 accounts at five times its base rate.
Vendor Link: Mobile Welder Terms
Is It Hard to Find Net 90 Vendors?
Generally, extended repayment terms are one of the easier types of business credit to obtain. A financial tradeline from a traditional institution, such as a small business loan or business credit card, should have much higher qualification requirements.
However, net 90 financing is unusually tough to secure. After all, 90 days is a full quarter of the calendar year, and many businesses can’t afford to defer payment for their products or services for that long.
Even if you can find vendors that offer 90 days of interest-free financing, they may reserve those payment terms for their most eligible clients. That typically means showing a more extensive business credit history than most new businesses have.
Fortunately, shorter repayment terms are much easier to obtain. Many vendors are willing to offer most clients a net 30 account or net 60 terms. For example, here are some great companies to consider:
- Net 30 terms: Quill, Uline, and Crown Office Supplies
- Net 60 terms: Faire, Abound, and Creoate
If you’re primarily interested in building business credit, a net 30 vendor account is probably a better place to start than a net 90 tradeline. Not only are they more plentiful, but they’re also usually easier to qualify for as a new business owner.
How to Negotiate Net 90 Terms
Since relatively few vendors offer net 90 terms, and even then only sparingly, you may need to negotiate to secure the account you want. Let’s review some tactics you can use to improve your chances of success.
First, be strategic about the vendors you choose to negotiate with. Consider focusing on larger businesses, as they’re more likely to have enough cash flow and working capital to go without payment for 90 days.
In contrast, a small business owner may find deferring payment for so long financially burdensome. After all, they’d have to wait an entire quarter of the year to get paid. That's a significant risk for a company with limited cash reserves.
Also Read: How to Open a Business Credit File
Similarly, it’s best to target businesses that already offer extended repayment terms to clients. If a vendor provides net 30 term accounts, it’s more likely they’ll be willing to offer you a longer payment term.
When you begin negotiations with your chosen vendors, try to frame net 90 payment terms as a win for both parties.
For example, rather than threaten to take your business elsewhere if they don’t accept your request, argue that having net 90 terms will improve your cash flow, allowing you to purchase more of their products or services.