HOW CAN I GET TRADE REFERENCES??
I have recently opened for business and won a couple of contracts but my suppliers are asking for trade references…does anyone have any advice PLEASE
Thanks in advance
it sounds like you need to explain to your suppliers that you are a new business and haven’t got any trade references (and then presumably pay cash on delivery for the goods) . They may sometimes accept references from other sources (eg your accountant) if you explain your situation to them.
Have a chat to your contact on the phone – presumably they are aware you are a new business?
James Smith [i]Chartered Accountant[/i] www.jamesesmith.co.uk --------------------------- Your indispensable guide to Small Business Bookkeeping, Self-Assessment & VAT
In a proactive way, what do you need the reference for? If it just to say who you are then the bank manager for a £5 fee will do it, also a doctor or local mayor wil do it!
If it is something different like for credit? then again the bank can help?
Thanks for the help…its just that every supplier I go to for credit, always ask for 2 trade references but if your only starting up how are you supposed to get them??? And how creditable do they need to be?
I will have a word with my accountant and see what ideas they can give me!
Pay cash for the first order or two and then get a small amount of credit. The first supplier will have to uderstand this. As long as they get their cash they should not mind.
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Most people starting out probably won’t get credit so you need to talk to the supplier telling him that your business is new and discuss with them what you have to do to earn a credit account. In all probability they will tell you that if you pay cash for the first two or three months they will grant you a credit facility.
Bear in mind that anyone who gives you credit is effectively helping to finance your business and companies need to know that if they are providing goods, services or money they will be repaid.
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This is something all new businesses go through, and just about any supplier will be cautious to give credit to someone they havent heard of and hasn’t been around long.
As everyone has said above, pay cash here and after a while you would have earned yourself a trade reference from this supplier!
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Mark – I am having the same problem. Its not that I even want credit (although it might help) but to have a trade account i.e. be a reputable person/company to supply to, the majority of them want a least two references from other suppliers. vicious circle! Please let me know how you get on and get round this, that would be much appreciated and I will too if I get anywhere!!…………………I’ve just realised how old this post is….how have you got on in the last 3 years!?