FEBRUARY 15, 2022
Ever wondered what 2/10 means on your net 30 invoice? It’s a discount formula that can also give you a Paydex score boost when paid on time.
This is a type of discount that some Net 30 vendors give to buyers who are willing to pay their tradeline invoices off early and in full. The numbers within this formula can also change depending on the vendor’s preference and are broken down as follows:
D2 = This discount percentage is ONLY given when the buyer pays their invoice early (2% off total)
10 = The timeline after invoicing when the discount applies (up to 10 days)
Net 30 = Normal, 30 day payment terms
In this instance, the buyer will receive a 2% discount if they pay off tradeline credit in full up to 10 days after the invoice billing date.
How do you calculate 2/10 net 30? The math is quite simple with the first number (2) being the percentage discount of the invoice amount, while the second number (10) is the number of days from billing that it applies.
The number 30 in this formula can also be exchanged for Net 15, Net 22, or Net 60 payment terms which would change the billing due date accordingly.
If you’re looking to build business credit quickly, try not to make any of these missteps that can cause lender concern and score decreases.
When it comes to credit reports, business owners check the company info & financial data found in their business credit profile for accuracy.
Ever wondered what 2/10 means on your net 30 invoice? It’s a discount formula that can also give you a Paydex score boost when paid on time.
While originally developed for federal government agencies, business classification system SIC codes are now also used by credit reporting agencies.
By choosing your business structure and corporation status wisely you adjust how you pay taxes to the Internal Revenue Service.
Learn the true facts! Any eligible employer who paid qualified wages to W-2 employees during COVID-19 can claim the employee retention credit.
To the right you'll find answers to the most frequently asked questions we get. Feel free to reach out to us if you have more questions and we'll be happy to answer them.
Just like how consumer credit is linked to your SSN, your business credit is linked to your EIN. This means when applying for business credit, it's usually not required to include your SSN.
Once you properly establish your business entity and Credibility Foundation, you start off building your business credit profile with smaller vendor accounts. As your business pays those retailers you will then qualify for revolving store credit cards, and then cash credit you can use anywhere, just like a normal personal credit card.
Keep in mind that because of federal regulation you will still need to supply a SSN for identity verification purposes. Also providing a personal guarantee can open up even more financing options.
You can qualify for real usable vendor credit immediately. You’ll then start to qualify for store credit within 60-90 days that doesn’t require a personal credit check or personal guarantee.
Within 6 months you should have access to $50,000 in real usable credit, including Visa and MasterCard accounts.
You can then continue to build $100,000-$250,000 or higher in business credit within a year to two.
Every step of the process includes simple education videos and direct resource links so that your business credit building journey is a 'no-brainer'. In the rare occasions that you need help, you have our business credit advisers and finance officers to help!
So as long as you're committed to follow our instructions and are serious about the success of your business, then yes, you really can do this -- even if you're technically challenged.
With that being said, it's important to understand that we do NOT build your business credit FOR you. We help you through simple step-by-step instructions and education. Essentially, follow our instructions and get results.
It's true that between all of our free guides, articles, videos and seminars, you have enough knowledge to go get business credit all on your own. It's also true that we don't hold anything back in our sharing of knowledge because at the core of our company, we want to help as many business owners (and those aspiring-to-be) as possible to have an equal opportunity to succeed and thrive.
With that being said, there still are services you will have to pay for such as 411 listings, business credit monitoring, and a business credit builder so that you're reporting to the right agencies (costing over $3000), not to mention, you'll still have to go out and find vendors and lenders. There are also lots of limitations going this way.
The difference with us is that we have already established countless partnerships and affiliations, which allows us to fully leverage the power of our entire company and client-base for each individual client. Essentially, you get to leverage our company for your benefit. And due to our established credibility in the business credit and financing industry, it's easy for us to expand and constantly add even more funding sources and options, which YOU benefit from. That’s how we have the largest supply of vendors and credit issuers than anywhere else.
In short, if you were to try and get business credit and financing on your own or somewhere else, you'll pay MUCH more than what we ask, and it would take a lot longer. We have this entire process dialed in so that you can get the most amount of funds, in the shortest amount of time, and at the lowest rates possible.
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