Newegg Net 30 Review
Signing up for multiple net 30 accounts is the traditional way to establish your business credit. Since most are tier 1 or tier 2 vendor tradelines, even a relatively new small business owner can qualify.
However, there are significant differences between net 30 accounts, and they won’t all be right for you. This review of the Newegg net 30 account will help you determine whether the tradeline is worth adding to your credit mix.
Our Newegg Net 30 Review
Newegg is a good net 30 option if you're looking to establish your business credit score. It reports to two of the three major business credit bureaus, and there are no fees to apply for or maintain the account.
In addition, Newegg offers a diverse mix of products that are perfect for office-based businesses. You can use your extended payment term to buy everything from electronic equipment and software to cleaning supplies.
If you’re thinking about requesting an account, here are the primary factors to consider:
- Reports to Equifax Business and D&B
- No Mandatory Application or Subscription Fees
- Buys Office Equipment, Electronics, and Software
Which business credit bureaus a net 30 account reports to is arguably the most significant factor to consider when you’re trying to build credit. After all, creditors will never know about your activities if your account issuers don't report them.
Newegg reports to two of the major business credit bureaus, Equifax Business and Dun & Bradstreet (D&B). As a result, you’ll need additional tradelines to build credit with Experian Business, the third major business credit bureau.
However, that’s not a significant criticism. Relatively few net 30 accounts report to all three. Plus, you'll need several vendor tradelines with each credit bureau to lay a meaningful credit foundation, so you’ll have to apply for more anyway.
One of the downsides to building business credit with net 30 accounts is that it can be surprisingly expensive. Many issuers charge fees to apply for or maintain access to your account, which adds up.
For example, you’ll incur a $99 application fee when you request a Quill net 30 account. The vendor also requires that you submit an order for at least $100 worth of goods before you even have the option to apply.
Fortunately, that's not the case with Newegg. No fees and no minimum order are required to submit an application. You can also retain the account indefinitely with no recurring membership fee. However, Newegg may charge you for late payments.
Another significant factor to consider when analyzing an account is what the net 30 vendor offers. After all, net 30 accounts are store-specific credit lines, and you must use them regularly to build business credit.
As a result, it’s best to open accounts with companies that offer something you already want. Otherwise, you’ll waste money buying something unnecessary to exercise your net 30 payment terms and establish a payment history.
Newegg sells technology, computer software, and business supplies, making it perfect for office-based operations.
There's also enough variety to make it relevant at every stage of your business. You could furnish your new office with a desk or restock on sticky notes.
How To Qualify for a Newegg Net 30 Account
If you’d like to add Newegg's net 30 terms to your mix of credit accounts, you can submit an application online. However, you need a Newegg business account first.
Surprisingly, getting one isn't as easy as setting up a username and password. You’ll actually need to provide information about your company, including the following:
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Registered business name
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Industry group and industry
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Number of employees
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Federal tax ID and DUNS number
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Registered business address
Newegg will respond to your account request in a day or two. Only once they approve your business account will you be able to apply for net 30 terms. From the Newegg site, click My Account and select Net Term under Options.
That will take you to the application for the net 30 payment option. It asks for some of the same information as the account request form, including your business name, address, and DUNS number.
It will also ask you to provide your desired credit limit, bank references, and trade references. Asking for a modest credit limit may improve your chances of qualifying, as would providing multiple positive references.
Newegg will need five to ten business days to process your net 30 application. To clarify, that’s separate from when you waited for them to process your business account request.
They may check your business credit during this period, but they won't look at your personal credit. Afterward, eligible businesses will gain access to extended financing with a 30-day credit term for Newegg purchases.
Use eCredable to Build Business Credit
Opening net 30 accounts is the traditional way to build business credit because they’re easier for a new business owner to get than a business credit card or a business loan. However, it’s not always the most cost-efficient strategy.
Not only do you have to make regular purchases on each account, often for goods you don’t need, but you’ll also likely incur application or membership fees. When you have half a dozen accounts, that can really affect your cash flow.
In addition, opening net 30 accounts is often highly time-consuming. You have to fill out detailed applications and wait through long processing periods. Once you work up to higher-tier vendors, your requests may also get denied.
Fortunately, our Business Lift program offers a much more efficient way to build trade credit. For just $19.95 per month, we’ll report an unlimited number of your recurring expenses to Equifax Business and Creditsafe.
Not only will we share your current monthly payments, but we’ll also report up to 24 months of historical activity! That can help you establish years of credit history overnight, which is one of the only ways to improve your business credit scores quickly.
Sign up for eCredable today and take the shortcut to good business credit!
Learn More: You need multiple net 30 accounts 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: