Page 153 - Winning The Credit Game Bundle (CK Patrick)

CHAPTER 4
BUSINESS CREDIT TIER

1: NET 30 ACCOUNTS

Now that you’ve set your business up as an independent entity
with its own credit score and credit reports, it’s time to secure
your first business credit. I recommend doing this by estab-
lishing your first store account with a vendor or supplier.
Store accounts are low-risk for borrowers and lenders alike
precisely because they are restricted to buying from only one
store.
For you, this means that you are unlikely to spend huge
amounts of money and find yourself struggling to pay it back. If
you can only use this line of credit on certain items necessary to
your business's operation, the risk of budgeting errors or
spending money on items that do not have a direct benefit for
your business is low.
This, in turn, means that the creditor is less likely to lose
money from nonpayment. The creditor is also likely to make
more profit by selling you more products over time if they know
that you have a special arrangement to buy supplies your busi-
ness needs from their brand. They win customer loyalty and you
win store credit. Everybody wins.
As we mentioned earlier, these come in different varieties,
including net 10, net 15, net 30, and net 60. The number in these
designations refers to the number of days you have to pay for

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