topic Paying Net 30 Invoices - Ideal Timing? in Business Credit

Paying Net 30 Invoices - Ideal Timing?

shane82388 — Thu, 21 Nov 2019 00:23:50 GMT

So I just started with building my business credit by opening a couple of Net 30's in the past few days. I've had an AMEX SimplyCash for years but I dont think it reports to any credit bureaus?

Anyway, I've now successfully got Uline, Grainger and Quill. I've made purchases at each and the Uline order showed up in the mail today.

Through reading many, many posts it seems that some of these invoices need to be left open for a certain amount of days or soemthing to actually get them to report?

I can pay them all immediately, but I want to make sure I do this right and they all report properly the first time. Any tips on this?

Thanks.

Re: Paying Net 30 Invoices - Ideal Timing?

Anonymous — Thu, 21 Nov 2019 06:35:52 GMT

Order mid-month... hold invoice past beginning of following month. Pay in full with T-7 days and counting. Make sure you only do this if they accept CC / ACH payments. Do not wait till day before. Murphy's Law feeds on procrastinators 🤣.

A large percentage of vendors report open invoices to CRAs end of/ beginning of month. Keep invoice open during this period. Similar to statement cut date for CCs but you want balances showing on business side of credit building. If you pay too soon before vendor reports you run the risk the vendor wont report your activity for the cycle since your balance would be zeroed out for end of month.

Re: Paying Net 30 Invoices - Ideal Timing?

shane82388 — Thu, 21 Nov 2019 19:38:05 GMT

Okay, since its sorta mid-month when I placed these orders, I'll wait until early December to pay them. Thanks for the info!

Re: Paying Net 30 Invoices - Ideal Timing?

Anonymous — Fri, 22 Nov 2019 04:26:12 GMT

Can't stress this enough especially for any newbies... make sure you verify with vendor accounts receivable/credit department how they accept payment for open invoices. Some vendors do not accept CCs thereby must be ACH or snail mail check. Verify that there is no penalty for CC/ACH payments... you would be surprised especially as it pertains to gas cards. Some vendors have been known to not process payments received over the weekend as well. So if your Due Date lands on a Sunday and you mailed a check on Wednesday and it got there late afternoon Friday... well... you just made a late payment as that check may not be deposited till Monday. Of course these are extreme examples but it has happened to others in the past.