Industrial supplies are rarely cheap if you don’t want to skimp on quality. At the same time, you can’t exactly put off purchasing them lest you end up with production delays.
So, what do you do when cash flow is tight but you need industrial supplies ASAP?
The Grainger Net 30 account offers the best solution for you. Let’s review what they have to offer so you can decide whether it’s the right deal for your business.
Our Verdict on Grainger’s Net 30 Account
WW Grainger Inc. is an industrial products company established by William Grainger W. Grainger in 1927. His son, David Grainger, was the largest stockholder in the business and served as the director until 2007.
Today, Grainger is one of the largest suppliers of industrial products, from fabrication equipment and plumbing tools to HVAC and office supplies. They offer over 1.6 million industrial and safety products, making them an excellent one-stop shop for businesses in many industries.
Like many business tradelines, Grainger offers Net 30 accounts for businesses that need their products delivered swiftly but want to minimize cash flow constraints. With the Grainger Net 30 account, you can settle your balance 30 days from the date of the invoice, shipment, or pick-up of your order.
The flexibility of their payment terms, combined with their expansive catalog, make them one of our top recommendations for industrial supplies and office supplies. We highly recommend making a catalog request so you always have a list of their products on hand.
Grainger’s Net 30 Account Pros
You Can Build Business Credit
Grainger is one of the companies that help build business credit, which can help you negotiate better terms with other Net 30 vendors, increase your borrowing power, protect your personal credit, and more.
Currently, the only business credit bureau they report to is Dun & Bradstreet, unlike other companies that typically report to Experian or Equifax Business. However, Dun & Bradstreet is considered one of the top three credit reporting bureaus for payment history in the United States.
Of course, you will have to pay your invoices on time if you want a positive payment history. You may be able to get an extension on the 30 days, but that will depend on Grainger’s discretion.
Failure to pay your invoice on time may lead to delivery delays, late payment fees, or cash advances for future orders. This Net 30 vendor may also demand immediate payment for balances owed (both past and existing orders) or forward your account to collections.
On the flip side, you may see positive changes in your business credit score if you consistently make on-time payments according to the Net 30 terms. If you need an extension or are encountering a technical difficulty with your order, contact Grainger customer support for immediate assistance.
Luckily, they have flexible payment methods, including cash, check, money order, or credit card. However, the preferred method for business clients is via Electronic Funds Transfer using the CTX820 format.
There’s No Credit Minimum
Grainger does not have a minimum order amount to qualify for a Net 30 account, which can be especially beneficial for a small business that only needs a small number of items. You do have to order at least $50 for them to report your payment history to D&B, though, but it’s a very doable amount.
Another thing to consider is their credit limit. Currently, the standard credit limit for net 30 accounts is $1,000. However, you can increase this limit up to $5,000 by contacting their order support line at 1-800-GRAINGER.
What’s great about this feature is that it’s scalable. As a small business, you can easily start with a $1,000 limit. But as your needs grow and you build a vendor relationship with Grainger, you can scale that limit up to $5,000.
Still, it’s important to remember that late payments and other account issues can affect your status as a client. It will likely be much easier for you to increase your vendor credit limit if you make on-time payments and have good business credit.
Grainger’s Net 30 Account Cons
You May Not Get Approved Instantly
Although there’s no credit minimum or a personal credit check for Grainger Net 30 accounts, instant approval is not guaranteed. Some customers have said that they could not qualify immediately because their business is new or they don’t have any credit references.
In such cases, some business owners were able to open their Net 30 accounts by contacting Grainger customer service directly and negotiating their terms and credit limits.
You can also build business credit in other ways to make the application process easier. For one, you can establish a trade account with other vendors that may be easier to qualify for, such as Crown Office Supplies or Summa Office Supplies. You can also open a business line of credit to establish a payment history, but be sure to make payments on time to avoid a decrease in your score.
Another great strategy is to make on-time payments for other financial products, such as business loans, bills, and credit card balances. It may also be worth considering applying for small business loans or lines of credit to build your profile gradually.
Grainger’s Net 30 Approval Requirements
Applying for a Grainger Net 30 account is fairly easy and there are only two things you need. First, your business has to be at least three months old. Second, you need a Dun & Bradstreet Number (DUNS).
As mentioned, there is no minimum order amount to qualify for a Net 30 account. However, you may want to order at least $50 worth of products so that the vendor reports your payment history to D&B.
If your business doesn’t have a credit history yet, Grainger may ask you to share additional information, such as your business’s gross income statement and balance sheets.
Let Credit Suite Help Your Business Thrive
For many businesses, the main purpose of getting Net 30 accounts is to ease the strain on their cash flow by offsetting payments up to 30 days. However, there’s a secondary benefit that you also need to consider: building business credit.
A Grainger Net 30 account can help you do just that. You get access to millions of industrial products and office supplies and, at the same time, you can build your payment history by simply settling your invoices on time.
Opening and using a Net 30 account is a wise business plan, but it’s only one way to establish your business’s credit history. With Credit Suite, you can find more credit-building strategies, such as using credit line hybrids, opening lines of credit, applying for business loans, and much, much more.
Let Credit Suite be the ultimate financial guide for your business. Learn more about business financing, Fundability, and business financial management today.
