Supplier of credit application - how much to ask for?
04 November 2002, 05:25 PM
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£2K is reasonable as long as you don't immediately go over it with your first order!
Most companies I have worked for have used this as a starting point.
Most companies I have worked for have used this as a starting point.
04 November 2002, 05:39 PM
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True, true. Various computer components as a client wants to buy some PC's - unknown yet as to how many they'll want. Is it normally tied to turnover or what? Also, who can I use for my business references if I haven't done this sort of thing before? I guess my accountant counts as one
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04 November 2002, 06:16 PM
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If you're trying to get credit from IT distributors, it's damn hard work these days. Normally they ask for references from other companies in the same market sector. However, chicken and egg first time around...
04 November 2002, 06:27 PM
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The IT disties have been hit that many times that it is hard work first time round. I am lucky now as I have been in business 10 years and it easy to get credit especially as I have big credit with the big disties.
Always ask for more than you need. You will generally get a reduced figure. ASk for £5k and you will get £2k. It might be easier to use your credit card at first and build up a trading history with a supplier. Most will do credit card transactions for nothing to try and get your business.
from the disties point of view it is a chicken and egg thing. They want your business but your business costs them money to insure your debt. Small debt is very very difficult to insure so they end up taking it on the chin. So it is easier/almost cheaper for them to pay 2.5% credit card fees to get your business until you need some reasonable size credit i.e £10k or above.
good luck
Always ask for more than you need. You will generally get a reduced figure. ASk for £5k and you will get £2k. It might be easier to use your credit card at first and build up a trading history with a supplier. Most will do credit card transactions for nothing to try and get your business.
from the disties point of view it is a chicken and egg thing. They want your business but your business costs them money to insure your debt. Small debt is very very difficult to insure so they end up taking it on the chin. So it is easier/almost cheaper for them to pay 2.5% credit card fees to get your business until you need some reasonable size credit i.e £10k or above.
good luck
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