Review Aspects of Business Credit Building Foundation Newsletter for January 3rd roll out.

1. Benefitsof NetAccounts
As youknow, NetAccountsare a greatway foryour business togetneeded suppliesandinventoryand
manage monthlycashflow. However,manysmall businessownersandentrepreneursaren’taware of
howbeneficialNetAccountsare forbuildingbusinesscredit.
What’sa NetAccount
A NetAccountis a line of creditextendedtoyourbusinessfromavendororsupplier.The termsare
usually30 days,howeversome accountsextendedlongerorshorterpaymentperiods.ForNet30
Accounts,the balance of your bill isdue within30days.
Benefits
As youknow,NetAccountshave twointerconnectedbenefits—theyallow youto/getthe suppliesand
inventoryyouneedwhile helpingyou managingcashflow throughoutthe month.
Afterbills,payroll,andotherexpensesare paidyourbusinessmayexperience low cashreserves.Setting
up a NetAccountallowsyouto better control yourmonthlyexpenses andpayouts.
BusinessCredit
The most importantbenefitof NetAccountsisthe abilitytobuildbusinesscredit.
NetAccountsare a lotlike yourfirstcredit. Your firstcreditcard probablyhada low limitanda high
interestrate.
I rememberwhenmyfriendChadgothisfirstcreditcard.He went straightto the mall and maxeditout.
He missedpaymentsandeventuallyitwenttocollection.MyfriendNaomi gotacreditcard rightaround
the same time as Chad.
Listeningtoherparents,she useditfor gas andsmall purchases only.Everymonthshe made at leastthe
minimumpayment,oftenpayingoff the entire balance.She made small purchaseseverymonthand
createda strong historyof on time paymentsand creditworthiness.
6 monthslatertheybothappliedfor anew creditcard. Guesswhichone was approvedfora card witha
higherlimitandbetterterms?Itcertainlywasn’tChad.
NetAccountsworkin muchthe same way. Theyprovide neededsupplies,inventory,andcashflow
managementwhilebuildingthe foundationfor
Theywon’tgetyour businessthe capital itneedstohire new staff,buttheywill helpyouestablisha
solidpaymenthistoryyoucanbuildupon.