Vendor Credit: Alternative Financing for Main Street Businesses

Vendor credit is the single most accessible form of funding for businesses and startups: credit given to you by a business. Here are a few types available to you:

Credit cards

  • For example, if you’re a business and you get office supplies from Staples on a frequent basis, they could give you a Staples credit card.

Net credit

  • If Staples were to let you buy whatever you want and they’ll bill you at the end of the month, that is net credit. Generally, there are two types of net credit: Net 30 and Net 60 – both numbers pertain to the amount of days you have to pay them back.


  • For example, if you went to a car dealership and they financed your purchase, this is also considered a form of vendor credit.

Vendor credit is a very common way for startups to get some funding to help them get off the ground. Just be careful not to fall for any online scams proclaiming that if you pay them a certain amount, they will give you a larger line of credit. The Internet is rife with scams involving vendor credit, so proceed with caution if you go that route.

Tim McCormack, President of The Finance Store, defines and characterizes what he calls the most accessible type of financing for small businesses: vendor credit.