The net-30 game is changing.
I hate to be so dramatic, but I know alot of you have seen this coming for a long time now. Net-30 companies are not interested in being used for reporting purposes, and they are definitely tired of being burned by scammers, so what are we, as honest business-owners looking to strategically choose our vendors, to do? In short, be more strategic.
We are finding that it is the way that you apply to a net-30 that affects your approval or not. The days of filling out some dry online form and magically getting 10-15 net-30 accounts is over. This has become a contact sport, phoning in orders are the new “it” process, and the way you pay has become important as well.
The net-30 hump is the hardest to get over. Sometimes the representatives of our favorite net-30 companies are rude (cough*Quill*cough), and sometimes they even, unintentionally, make you feel as if your business isn’t important enough to order that overpriced red stapler that they are offering. When you get discouraged by a net-30 company that is giving you “the business” (an not in a good way), remember this:
They are in business too!
What I mean is, don’t take this personal. For larger companies, they make much more money off repeat customers with whom they have relatioships than the one-and-done new company that orders $50 and never comes back. I’d even say that those one and done customers have a default precentage of at least 40%, in contrast to a 10% default rate among customers who have ordered for 6 months or longer. It’s business. No matter how that CSR talks on the phone, remember they are just relaying the companies info, and trying to keep their jobs. As entrepreneurs we sometimes have to look past the surface and be able to judge the systems in place to find a reason fro what we experience.
Remember, if business was easy, nobody would care about having a job. You are the leaders of this economy, and it only does well, when we you do well. You may have to call 50 net-30 companies to get your 5 to report to DnB, or you may only have to call five, but either way you have to be on your p’s and q’s every time and put your best foot forward. Remember, you can always call us and sign up for our unlimited phone and email coaching to stop you from pulling all your hair out . . . unless it’s too late already
Here are some tips to get around some of this net-30 muck that’s going around:
1. Call back/Ask for a Manager -Always consider that you just spoke to the wrong person, maybe someone is giving you a hard time because they had a bad day, don’t let them transfer their stuff onto you.
2. Stay respectful and patient - Never lose your cool, you should be in control of your emotions, if they tell you know, they just lost business ad revenue, not you. You might just get pity if you stay calm, but you’ll never get the account by blowing your top.
3. Fax your app/Wait to check in - Try to fax in an app and wait a few days before you call about a decision. Remember credit is often given the most when it appears that it isn’t needed, don’t be too eager, you’ll look like a scammer.
4. Make a looooong list - There are about 7000 companies that report to DnB, why is everybody using the same 4-5? (Unfortunately, we do not give out, or sell lists)
5. Take your time - I don’t know how you heard about business credit, but we are always going to give you our best advice possible, set aside 12-15 months to do this. Especially in the credit arena that the US is in right now, this journey will be difficult. It may take an extra 3-4 months for your to get your paydex, but it will work just as well when you do get it.
6. Get help - Much of this blog is free, but there are services that we offer to help you. Even if you choose not to use us, use someone else. Getting help goes beyond shooting off an email or a phone call every once in a while. Early mistakes could take months to affect the credit your get, but eventually it will affect it. There are plenty of companies that will help you build business credit, and yes; we are one of them. The point is that you find someone who knows more than you, and ask questions. (BTW, our coaching is the best value in the country, check around!)
7. POST HERE - Have you ever heard that no question is a bad question? Part of the reason is that someone might have had the same question as you, and you bailed them out! I was on a conference call for CPN’s yesterday and I heard some of the worst questions that, without a doubt proved that these CPN buyers were looking to do illegal and unethical things, but they had no remorse in asking. So why would you, a growing entrepreneur have reservations about correctly leveraging your business credit vendors? Use the comments on this site, I am on all the time and can answer most questions right online. Get involved here, and the discussion will answer most of your questions without you asking.
That’s all for now, know that we are here to help, and we appreciate you reading our blog. We’ve got some exciting changes for you in the near future so stay tuned!