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Tier 2 Suppliers Second-tier suppliers are best described as suppliers or subcontractors to tier-1 suppliers. Tier 2 business credit can be an extremely beneficial tool for your company if you know how to apply for it and use it appropriately. It can be challenging to manage your company's cash flow, and tier 2 business credit can frequently give organizations the flexibility to manage through the ups and downs of their operations without interfering with access to inventory and supplies needed to keep everything running smoothly. Once you've established tier 1 business credit, keep tier 2 vendors in mind as you work to build a solid financial foundation for your firm.