How Net 30 Accounts Work at Shirtsy

Net 30 is trade credit, not a credit card

A Net 30 account is a form of trade credit: instead of paying at checkout, you place your order, we invoice you, and the balance is due 30 days later. It is an account with a supplier — us — rather than a line from a bank, so there is no card to carry and nothing to draw down in cash. For a growing business the practical effect is simple: your merchandise arrives now and the invoice comes due after you have had a month to sell it, run the event, or collect from your own customer.

Businesses use net 30 vendors mainly to protect working capital. Paying for 200 event shirts up front ties up cash that could cover payroll or ad spend; ordering the same shirts on 30-day payment terms leaves that cash in the account until the invoice is due.

Your credit limit and your reported tradeline are two different numbers

These get confused constantly, so it is worth being precise.

Your credit limit is your purchasing power — how much you can have outstanding at any one time. Every approved Shirtsy account opens with a $400 starting credit line. Your limit is set by a review of your business credit report together with the information on your application, and it can be reviewed for an increase as you build payment history with us.

Your tradeline is the account itself as it appears on your business credit file. Shirtsy reports your payment history monthly to the business credit bureaus, and reported tradelines run up to $6,000 depending on the account. A tradeline is a record of the account and how it has been paid — it is not money you can spend, which is why it is usually a larger figure than the credit line.

Shirtsy makes no representations or promises about your credit profile, scores, or outcomes. We report factual account and payment information monthly; what any bureau or lender does with it is outside our control.

Payment terms, invoice dates and due dates

Your due date is at least 30 days after the close of each billing cycle. Purchases carry a 0% APR — pay your balance in full by the due date and you are charged no interest at all. Balances are computed on a daily-balance method that includes new purchases, so an invoice dated mid-cycle is still covered by the full 30-day window from the close of that cycle. The full schedule is set out in our Net 30 account terms.

No personal guarantee and no hard pull

Shirtsy does not require a personal guarantee, and applying does not trigger a hard inquiry on your personal credit. Approval is based on commercial data rather than a personal credit check, which is the main reason newer businesses can open an account here when a bank line is still out of reach. You do need to be at least 18 and own 75% or more of the business you are applying for.

What happens if a payment is late

Late fees are charged per billing period in which the minimum payment is not received by the due date, and they scale with the balance:

• $15 on balances up to $100
• $29 on balances from $100 up to $250
• $39 on balances of $250 and over

A returned payment — a check or similar instrument that cannot be processed — adds a $39 fee. Because payment history is what we report each month, keeping invoices current is the part of the account that matters most.

Looking for more detail before you apply? Read the full Net 30 account terms, or see how we compare with other Net 30 vendors that report to the business credit bureaus.