I am starting my own business but plan on doing it on the side for some extra money. I plan on keeping my regular job full-time. My boss knows about this. My question is, when I'm filling out account applications, they all ask for "trade references". What do you do if you don't have any? Thanks!
Drop back 15 yards and punt. You are going to have to pay "cash and carry" for a while before anyone extends you trade credit. You might be able to use your personal credit history (mortgage, car loan, credit cards) to get your foot in the door. Lotsa luck!
Thanks! I appreciate your reply. :)Originally Posted by rbaker
Most suppliers WILL want to see an physical B&M store that their reps can visit before accepting new account applications that want credit terms. And even then, many want to first see the new business in operation for at least 6-months to minimize their risk. However, after your 6-months in business, many suppliers will give you 90 days terms... say 1/3 payment due each month for 3-months.
You also might consider joining an optical buying group after the 6-months... say www.theopticalgroup.ca and you automatically qualify for a trade account with many lens, frame and accessories suppliers in Canada. Their annual fee is reasonable and they will send you an itemized list of everything bought each month. They pay your suppliers and you will qualify for certain supplier discounts. However, they expect full payment from you each month. GOOD LUCK!!
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