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3 Steps to Get Net-30 Terms

  • date_range06/15/2017
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3 Steps to Get Net-30 Terms



It's middle of the month and depending on which way you look at it we've either gotten over or started to feel the anxiety and stress of paying our monthly bills.


As a business owner, we're doing our best to pay our monthly expenses on time while investing to grow the business.A key pillar of our business growth comes from our strong vendor relationships and establishing net term agreements.Those that are not familiar with net term agreements, net term is a specific type of trade credit where the payment is due in full 10/15/30 days after the item is purchased.


Here are the 3 steps that we take to grow a relationship with our vendors to establish a Net-30 Term agreement.



Step 1: Build a relationship with your vendor supplier.


  • 1) Trust doesn't develop overnight. It takes time, rapport, and communication to build the relationship.
  • 2) A mutual respect for policies.
  • 3) Build a monetary trust relationship with your vendor through good standing with payment, frequency, order size, and limited returns.




Step 2: Build up credit references & Provide payment information to supplier to charge to insure they can get payment.


  • 1) Build a strong list of vendors that you do business with and have a storied relationship with.
  • (Do not reference suppliers that you've done business with once a few years back. They must be able to vouch for you.)
  • 2) You can also leverage the number of years that your business has been established and/or the number of years that you've been an active client.





Step 3: Start by asking for a small credit limit at Net-10 terms then build up to Net-30.


  • 1) Start by asking for an avg. size order credit limit for Net-10 term and continue to build off of this agreement.
  • (We've been in business for 15 years and do not plan on going anywhere. We've been ordering for you consistently and prepaying for orders. Would you consider Net-10 terms and build from there?)
  • 2) Do not take offense if they supplier vendor says no. There can be a number of reasons why vendors do not want to offer Net Terms, other than not meeting their requirement.
  • (i.e. A bad experience with another previous Net terms client or they currently do not have the funds to support net terms – Remember vendors are taking the risk when they agree to net terms).

Start building strong relationships with your most frequent vendor suppliers and apply the 3 steps to attain Net Terms that will assist towards the growth of your business.


We thank you for your time and feel free to leave comments.


Best,

Thomas


5 Comment(s)

  • Megan Olivaria   09/18/2017

    I'm very interested in this program!
  • Brenda Nelson   08/21/2017

    I'm interested please email info to glamourgirlstudio@yahoo.com
  • Kim Woodards   08/02/2017

    I'm interested can you send me the information to get started.
  • Elaine Paquette   06/29/2017

    I'm very interested, please send information.
    Thank you.
  • Tasheba Gordon    06/16/2017

    I'm interested

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