@Anonymous wrote:
So my company right now isn’t even incorporated. I ordered about $35 worth of boxes on uline and I selected net 30. I didn’t know at the time what it meant. How do I pay this or what are the consequences if I don’t pay it? I don’t know how they can bill me if my company doesn’t even exist yet.
@Anonymous , welcome to the forums!
First....always do your research before applying for accounts, or come here and ask the questions, especially business related, as its a whole new ballgame in the credit world.
Second....your biz doesnt have to be incorporated to be considered a business. You can be a Sole Proprietor and still be considered a business. The fact that you applied for credit (even though at the time you didnt know that), you're still liable for the charges, sorry.
A 30-day net term account means that you have 30 days from the date of invoice (your bill), to pay the account in FULL. All net term accounts are a PIF account, and there are 15, 30, 45, and 60 day net term accounts. Uline is a net 30.
Also, Uline is a great way to start business credit as they will start reporting to the Biz credit agenicies on your or your companies behalf. Most folks starting out a new business go with a few net 30 companies to help build up their Biz credit, and its not a bad thing. Eventually they move on from the net 30 companies once they can be approved from companies like Chase, Amex.
As far as payment goes...yes, you have to pay it. You can pay online on their site, or push a payment to them from an external source (thats what I do), you will need to know their payment address to push from external source. They are quick to send out invoices to you, (usually next day), and you will get it via email if you signed up for email, if not, your invoice will arrive in the mail.
The sooner you pay the invoice, the better. Biz credit is completely different than personal credit, and I suggest you read up and search here, and the internet in general on how biz credit works and is graded etc...
I always pay my invoice within 3 days, and that helps build up your credit with the company itself, and your biz reports as its reported to them as well.
A side note on business credit with companies like Chase, Citi, amex.....they dont report to personal credit, and most dont report to business credit either. But if you default on the account in any way, they will report that to your personal credit. Otherwise, biz credit is a "hidden" tradeline. The only companies that report your business card to personal (which is what you want to avoid), is Discover, and Capital One. Most folks apply to Amex for a Biz cc because they are fairly easy to get. They will pull personal credit on EXP, but they wont report to personal.
Hopes this helps out!
