Tier 1
- $75 Minimum Purchase for Reporting to Business Credit Bureau(s)
Tier 2
- Personal Guarantee(PG) may be required by the vendor
- All payments (and any missed payments) towards purchases greater than $75 on a tier 2 account WILL be reported to D&B. (will have an optimal impact on your PAYDEX score)
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Before you apply for a net-30, you should know they operate on a tier 1 and tier 2 credit system. This means when you open up an account with them, they will automatically put you into the tier 1 category. This category will require you to prepay for your purchases for six months while you establish a history with them. During this tier 1 phase, they will report trade lines to Equifax Small Business, not Dun & Bradstreet.After six months has elapsed, you’ll qualify for tier 2 and then receive net-30 credit terms. When you reach tier 2, the company will start reporting to Dun & Bradstreet monthly.