Net 30 Terms Explained: How to Get Payment Terms From Suppliers

Updated September 2026 · 8 min read

Short answer: Net 30 means you pay the supplier’s invoice within 30 days of the invoice date instead of paying up front. If you want to know how to get net 30 terms from suppliers, the usual path is to pay up front for a few orders, fill out a credit application with trade references, and then ask for terms once you’ve shown you pay on time.

Payment terms are one of the most useful tools a small store has. They let you get product on your shelves, sell some of it, and pay the bill with money your customers already gave you. This guide explains how net terms work, what suppliers look at before they say yes, and a simple plan to go from prepaying to net 30.

What does net 30 mean?

“Net 30” is shorthand on an invoice. “Net” means the full amount is due, and “30” is the number of days you have to pay it. The clock usually starts on the invoice date, which is often the day the order ships, not the day it arrives at your door.

Common variations you’ll see

• Net 15, Net 60, Net 90: Same idea, different number of days.
• 2/10 Net 30: Take a 2% discount if you pay within 10 days, otherwise the full amount is due in 30.
• Net 30 EOM: The 30 days start at the end of the month the invoice was issued.
• CIA or prepay: Cash in advance. You pay before the order ships. Most new accounts start here.
• COD: Cash on delivery. You pay when the goods arrive.

Why terms matter for a small shop

Say you place a $2,000 opening order (example numbers). On prepay terms, that $2,000 leaves your bank account before a single item arrives. On net 30, the goods arrive in about a week, and you have roughly three more weeks to sell through part of the order before the bill is due. If you sell $1,200 worth at retail in that window, a good chunk of the invoice is already covered by sales.

Why don’t suppliers give net 30 to new customers?

When a supplier gives you net 30, they’re lending you money with no interest. They ship real inventory and trust you to pay later. For a brand-new account with no history, that’s a risk, so most suppliers ask for payment up front on the first order or first few orders.

Suppliers are mainly trying to answer three questions:

1. Are you a real business? They want a legal business name, address, and tax ID.
2. Do you pay other suppliers on time? This is what trade references are for.
3. Can you afford the amount you’re asking for? This decides your credit limit.

How to get net 30 terms from suppliers: a step-by-step plan

Here’s the path most small retailers follow. It works whether you buy from a small maker or a large wholesaler.

Step 1: Get your business paperwork in order

Suppliers extend credit to businesses, not hobbies. Before you apply, have these ready:

• Your legal business name and entity type (sole proprietor, LLC, corporation)
• An Employer Identification Number (EIN), which the IRS issues for free
• A business bank account in the business name
• Your state resale certificate or seller’s permit
• A business address and phone number that match across your documents

Step 2: Build a payment history

Your first suppliers probably won’t give you terms. That’s fine. Pay by card or bank transfer, pay promptly, and keep good records. After two or three clean orders, you have something to point to. Those suppliers can also become your first trade references.

Step 3: Fill out a credit application

Most wholesalers have a one- or two-page credit application. It typically asks for:

• Business name, address, EIN, and years in business
• Owner or officer names
• Bank name and account contact (some ask for permission to verify)
• Three trade references, meaning suppliers you’ve bought from on credit or prepaid consistently
• The credit limit you’re requesting

Fill in every field. A half-finished application is one of the fastest ways to get a “not yet.”

Step 4: Ask for a limit that fits your orders

Don’t ask for $10,000 in credit when your average order is $600. Ask for a limit that covers one or two typical orders. A realistic request looks responsible, and it’s easier to approve. Once you’ve paid on time for a few months, ask the supplier to raise it.

What if a supplier says no?

A “no” usually means “not yet.” Ask what would change their answer. Common responses include “place three more orders,” “we need one more reference,” or “we only offer terms above a certain order size.” Each of those gives you a clear next step.

You can also offer a middle ground:

• Partial prepay: Pay 50% at order and 50% on net 30.
• Shorter terms first: Start with net 15 and move to net 30 later.
• Card on file: Some suppliers will ship on terms if they can charge your card if a payment is late.

If you’re reaching out to a new supplier for the first time, our guide on how to email a wholesale supplier includes a template you can adapt to ask about terms.

How to keep your terms (and get better ones)

Getting terms is step one. Keeping them is about habits.

• Pay on or before the due date, every time. One late payment can drop you back to prepay.
• Communicate early. If a payment will be late, call before the due date, not after.
• Take early-pay discounts when you can. A 2% discount for paying 20 days early is a strong return on your cash.
• Keep references current. Suppliers who give you terms make the best references for the next application.
• Track due dates in one place. A simple spreadsheet with invoice date, amount, and due date works.

Net 30 vs. other payment options

Here’s how the most common options compare for a small store.

Option	When you pay	Best for	Watch out for
Prepay (CIA)	Before shipping	New accounts, first orders	Ties up cash before goods arrive
Credit card	At order, card bill later	Small orders, earning rewards	Some suppliers add a card fee
Net 30	30 days after invoice	Established accounts	Late fees and losing terms if you pay late
2/10 Net 30	10 days for discount, 30 max	Stores with steady cash	Missing the discount window

If you sell your own products to stores, the same rules apply from the other side. See how to set wholesale payment terms for your customers for the supplier’s view.

Common mistakes to avoid

• Treating terms as free money. The bill still comes. Only order what you expect to sell.
• Stacking too many net accounts. Five invoices due the same week can drain your account.
• Using personal info on applications. Keep business credit separate from personal credit wherever you can.
• Skipping supplier checks. Terms don’t make a supplier trustworthy. Here’s how to verify a wholesale supplier is legit before you order.

FAQ

How long does it take to get net 30 terms from suppliers?

Many suppliers review terms after two or three prepaid orders or after a few months of history. Some will approve a new store right away with strong references and a small limit.

Can a new business get net 30 terms?

Yes, but usually not on the first order. Start with prepay, build a record with a few suppliers, then apply with those suppliers as references.

Does net 30 affect my business credit?

It can. Some suppliers report payment history to business credit bureaus, so on-time payments can help build your business credit profile. Ask the supplier whether they report.

What happens if I pay a net 30 invoice late?

Expect a late fee or interest if your agreement includes one, and a supplier may move you back to prepay. Call before the due date if you know you’ll be late.

Sources

• IRS: Get an employer identification number