Zoro is another home improvement retailer and hardware store that offers a Net 30 trade credit program to its customers. Like similar programs at other hardware stores, the Zoro Net 30 program is only available to businesses. It would be most useful for construction contractors who need to buy supplies before they can complete a job and receive payment from their own customers. This is a standard Net 30 trade credit program so a business must sign up for it before making a purchase, but once the business signs up it can obtain short-term loans from the retailer without paying any interest or fees.
The Zoro Net 30 Program
After you sign up for the Zoro Net 30 program, you can log into your account on Zoro’s platform to pay any outstanding invoices from the hardware store. This means that Zoro doesn’t combine your purchases into one invoice and send you a single bill at the end of the month. Instead, you can select which invoices you want to pay at any time. If you made multiple purchases during the month, the invoices will have different due dates, so you won’t have to pay all of them at the same time.
Zoro’s Net 30 program doesn’t offer as much flexibility as the programs from some other hardware stores. For example, Menards also offers Net 50 payment terms. Additionally, the Zoro Net 30 program offers a limited selection of payment methods. The retailer expects payment with a credit card and doesn’t let you use ACH or PayPal to pay the Net 30 invoice. One reason for these restrictions is that the store might not receive payment immediately if you use another payment method, and the trade credit program already allows you to delay payment by 30 days.
It’s Unclear If a Personal Guarantee Is Required
Zoro’s website doesn’t say anything about whether a personal guarantee from the business owner is required to sign up for its Net 30 program. The hardware store also doesn’t mention any banks that finance its trade credit program. Its website says that credit is provided by Zoro Credit Services. So Zoro may be providing credit to its customers directly rather than using a bank partner such as Capital One.
If that’s the case, then Zoro may be performing the credit checks and examining the credit applications itself rather than outsourcing the screening process to a third-party bank. That would mean that Zoro would be able to establish its own rules for the Net 30 program without being limited by the bank’s trade credit financing requirements. Zoro doesn’t say much about the application process on its website but it does encourage customers who are interested in the Net 30 program to call the company.
Zoro Charges Late Payment Fees
Again, Zoro doesn’t appear to be offering trade credit through a partnership with Capital One or another bank. As a result, it’s not as easy to find information about the store’s fees and penalties for late payment. Zoro does charge late fees if you don’t pay a Net 30 invoice on time but it’s not clear whether these fees are higher or lower than the fees that Capital One charges. Again, if you pay an invoice within 30 days the store will not charge you any fees.
Zoro Allows Subaccounts
Zoro allows contractors to set up subaccounts so their employees can buy supplies using the main business account. This system makes it easier for employees to buy the supplies they need. However, Zoro is an online hardware store, so if employees order supplies online they’ll still have to wait for the delivery.
Other hardware stores provide physical cards to Net 30 subaccount holders. These businesses also operate warehouse stores, so an employee with a card can drive to the store and pick up supplies immediately. So even though Zoro allows you to add subaccounts, these accounts may provide more benefits at stores that maintain brick-and-mortar outlets. Note that Zoro’s online business model also provides benefits such as a large selection of products and low prices.