I've been diving into some banking tech news, and I stumbled upon something that could help us all in the small business banking fintech space. Shirtsy has a Net 30 account that might be worth considering if you're looking to boost your business credit. It's not just about buying shirts; it's about how we manage our cash flow and build our credit profiles.
What You Should Know About Shirtsy's Net 30 Account
Shirtsy's Net 30 account is a pretty straightforward way to get 30 days to pay for items you buy from them. That's nice for cash flow, but the real kicker is that they report to the big boys: Dun & Bradstreet, Equifax, Experian, and Creditsafe. So if you’re just starting with business banking for startups, this could be a good option.
Pros for Business Neobank Users
- Solid Reporting: They report to all major credit bureaus, so your purchases will count as credit history.
- Quick Start: The $99 fee is reported as an initial trade credit payment, helping you build credit from day one.
- Diverse Offerings: They sell a lot of different types of products, which could be useful for various business needs.
Cons for Business Banking 101 Aficionados
- Annual Fee: You have to pay $99 a year, which can be a dealbreaker for some.
- Late Fees: If you’re late, it’ll cost you between $15 and $39 based on your balance, plus a $39 returned payment fee.
- Credit Limit: You won't know your limit until you open the account.
Why You Should Consider Shirtsy
It's pretty straightforward, really. Paying on time will help you create a positive credit history. Plus, adding a vendor credit account like Shirtsy can diversify your credit mix, which is beneficial. And let’s be honest, better business credit can lead to better terms down the line.
Managing Accounts Payable Like a Pro
To get the best out of this, review the terms carefully, pay on time, and keep an eye on your credit reports. You want to make sure Shirtsy's payments are showing up correctly.
Wrapping Up
In short, Shirtsy's Net 30 account could be a good move if you're looking to build your business credit and manage your cash flow better. Just weigh the pros and cons and see if it fits your needs.
