Businesses rely on vendor relationships for a multitude of things; gathering raw materials, boosting customer service offerings, and securing certain software tools to help enhance business operations. While these partnerships are vital, investing in all the goods and services provided by vendors can add up fast. Luckily, with net 60 accounts offered by some vendors, businesses can get a bit of relief from the never-ending list of expenses.

Now, Net 60 vendors don’t provide goods and services for free, of course, but they offer delayed payment terms, often called trade credits, that allow business leaders to pay for the purchased items at a later date. This payment delay can help alleviate pressure from piling expenses, streamline cash flow management, and enable faster growth for businesses.

So, how can you make the most of our net 60 accounts? We’ll answer everything related to these types of trade credit accounts including how to find them and how to manage them. Finally, you can comb through our curated list of net 60 vendors to find ones that might support your business needs.

What are Net 60 Vendors?

Net 60 vendors offer their clients 60 days to pay for the goods or services rendered. Unlike many vendors who require customers to pay the total owed in its entirety before delivering goods or services, net 60 vendors give a hefty repayment window to their clients. These trade credit agreements can be thought of as interest-free lines of credit for businesses, and sometimes opportunities for discounts are available when invoices are repaid early.

Types of Net 60 Payment Terms

On the surface, net 60 payment terms may seem all the same, but some vendors provide certain discounts to customers who pay early. For instance, if you secure 2/15 net 60 terms, you’re getting access to a 2% discount if you pay the invoice within 15 days of receiving it. Keep in mind that payment terms refer to calendar days, not business days. This is important for accounts payable teams to consider when managing invoice payments. 

Let’s look at some other net 60 accounts for new business users:

·  2/10 net 60: Customers get a 2% discount on the total amount owed if they pay the debt within 10 days of receiving the invoice.

·  1/15 net 60: Customers get a 1% discount on the total amount owed if they pay the debt within 15 days of receiving the invoice.

If you’re not sure what type of net 60 accounts you’re working with, ask the vendor. Managing supplier relationships is key, and having an open line of communication is part of that. When in doubt, ask!

Net 30 vs. Net 60

When onboarding new vendors, you might see that one vendor offers net 30 payment terms while another offers net 60 payment terms. Is one better than the other? Net 30 vendors allow customers a 30-day window to pay invoices, while net 60 accounts provide a payment window that’s twice that size – 60 days. At first, it might seem like net 60 accounts are better, but it comes down to how you want to manage your business.

If accounts payable teams have too many net 60 accounts to manage, your company could be racking up large sums of debt in that window before the financial impact is realized. So, if you’re looking to keep a tighter hold on the liabilities portion of the balance sheet, net 30 accounts might be preferable.

Importance of Net 60 Vendors

Net 60 accounts are important for businesses, especially in the early days of operating when it’s more challenging to secure funding and other lines of credit as a business. Not only do net 60 accounts for new business make it possible to gather key materials to run your business before bringing in a lot of revenue, but they also offer many other opportunities such as:

Building Business Credit

As a new business, building business credit can be a challenge. Banks and financial institutions are often hesitant to work with businesses that don’t have established credit, and net 60 accounts for business are one of the best, most accessible ways to overcome that barrier and build credit. Because net 60 vendors offer these terms to most customers – as long as you qualify based on the vendor’s standards – they create a simple path to unlocking future lines of credit from other sources with more stringent requirements.

Interest-Free Financing

Net 60 accounts are interest-free, so the debt you incur won’t grow as it sits unpaid. You could face late fees or damaged supplier relationships if you don’t pay invoices within the 60-day window, but unlike bank loans and business credit cards, these trade credit agreements don’t multiply with time. The interest-free aspect of net 60 accounts doesn’t mean that your accounting team can be too lax when managing payments; these are still

Enhanced Access to Growth

It may not seem like net 60 accounts are more than a debt management vehicle, but they can act as a launchpad for business investment and growth. If you have an extra $5,000 to spend in one month, and your invoices aren’t due for payment for two months, that $5,000 can go back into your business. Perhaps it’s purchasing new equipment, hiring a consultant, or developing a new product – whatever it has, having cash on hand to spend will always result in greater growth opportunities.

How to Select the Best Net 60 Vendors?

The vendor selection process can be tedious; it’s about so much more than payment terms and product offerings. If business leaders are on the hunt for net 60 vendors, they need to ensure that they’re finding vendors that are a good fit for their organization. Beyond payment terms, be sure to consider:

·  Vendor Reputation: Do other clients speak highly of this vendor? Try reaching out to existing clients to get a better understanding of their experience.

·  Financial Stability: Is the vendor financially stable? Will they be able to provide the agreed-upon goods and services in a timely manner?

·  Cybersecurity: When you work with a new vendor, you’re essentially exposing your company to their systems and IT infrastructure. If they have a vulnerability, you could be exposed too.

·  Payment Term Flexibility: Will the vendor allow you to expand your payment window to net 90 or more after establishing a strong working relationship?

·  Customer Service: Are you confident that you’ll get the support you need from their accounts receivable department, customer service team, and other functions?

·  Scalability: Can the vendor continue to support you as you grow? If your company doubles in sales overnight, will you be able to get the materials you need to meet customer demands?

Best Net 60 Accounts of 2024

With our list of net 60 vendors, you can start your venture into trade accounts with ease. We’ve compiled a diverse list of businesses that can help you in your endeavors – which one are you going to reach out to first?

Abound Net 60 Accounts

Bringing all of the best small businesses into one online marketplace, Abound can help you find vendors that align with your company values. With everything from cards and stationery to office decor, Abound is a one-stop shop for your business needs. The net 60 payment terms and free returns are just cherries on top!

Supplied! Net 60 Accounts

Similar to Abound, Supplied! is another online marketplace conglomerate for small businesses and boutiques. If you want the personalized service provided by small business vendors, Supplied! is the place to start. With net 60 trade accounts, this vendor makes it easy for you to get what you need without breaking the bank. 

Home Depot Net 60 Accounts

No matter what industry you’re in, chances are, you’ll be making trips to Home Depot more often than you think. Replacing office supplies, perfecting small renovations, and restocking production materials are all things that can be done with the help of Home Depot. To access Home Depot’s net 60 terms, you may be required to undergo a personal credit check, but you won’t need a personal guarantee of any kind.   

Lowe’s Net 60 Accounts

Another construction supply store, Lowe’s is a fantastic net 60 vendor for contracting businesses, home renovation specialists, lawn care experts, and more. Whether you’re a large enterprise or a small business, Lowe’s is ready to help you tackle your to-do list. 

Faire Net 60 Accounts

Tired of cookie-cutter products and overpriced, poorly-made goods? Faire is the refresh you need. This online marketplace is full of independent retailers and small businesses, opening channels for you to differentiate your business. The net 60 terms offered by Faire are great, but the products listed on the marketplace will be what really blows your mind. 

Bulletin Net 60 Accounts

Known for bringing female-owned and sustainable brands into the limelight, Bulletin’s online marketplace provides a feel-good shopping experience to business customers. If shared values are the backbone of your business, you’ll love Bulletin’s net 60 payment terms.

Creoate Net 60 Accounts

Looking for matching team swag or new employee uniforms? Check out Creoate. This online clothing marketplace does more than offer net 60 terms, it also provides free global shipping, easy returns, and a price-match guarantee. 

Super Delivery Net 60 Accounts 

Super Delivery is a marketplace that is chock-full of discounted products. You can save 30%-70% when comparing prices to other retailers, and all products are created by top-notch Japanese companies. With a simple application process for net 60 payment terms, Super Delivery helps its clients access electronics, store materials, furniture, and more. 

Mirta Wholesale Net 60 Accounts

Specific to the fashion industry, Mirta Wholesale makes it easy to access new designs from world-class Italian designers. It doesn’t stop there, Mirta’s designer list is global, with top brands from around the world selling their apparel in Mirta’s virtual showroom. The 60-day payment terms are available with no minimum order amount, so no matter how small your business is, you can benefit from partnering with Mirta Wholesale. 

Kiko Wholesale Group 

With free shipping on orders over $350 and net 60 payment terms for approved businesses, Kiko Wholesale Group will fulfill all your electronics needs. New phones for your employees, headphones and earpieces, and a wide range of electronic accessories can be found in one place – Kiko Wholesale Group.

Looking to Optimize Vendor Payments? Look No Further Than Nanonets

Working with net 60 vendors is just one way to optimize the vendor payment process and the accounts payable cycle. Another approach? Look at digital tools and AP automation platforms that can support your employees in everything they do. With Nanonets, you can truly go paperless as a business; automated invoice approval, electronic payment capabilities, three-way matching, and due date reminders are just a few of the features your accounting team will love.

2024 is the year of finance automation. When done correctly, automating AP tasks will unlock new opportunities to scale, help enhance cash flow management, and make it easier to manage your company’s performance – not all that different from finding the right vendors to partner with. As you continue to clear obstacles and find new ways to improve your operations, be sure to prioritize tools and technologies that can help you reach your goals.

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• Source: https://nanonets.com/blog/net-60-vendors/