One Easy Way To Get Credit Faster From A Vendor

May 10, 2023 – 11:56 am

At this time of year, you don’t want anything to get in the way of getting the inventory you need RIGHT NOW! Whether your store or ecommerce website has been in business for five months or five years, when you ask a product vendor for payment terms, they will want to check your credit history. This practice is not only legal under the FCRA (Fair Credit Reporting Act) but it is a fair and usual practice. Suppliers must check credit because, for them, granting terms is no different than giving a business loan.

When it comes to checking the credit of individual specialty stores, finding credit information can be challenging. Because while information about a store owner’s personal credit is available through credit bureaus, unless the individual gives permission, vendors are not legally permitted to review personal credit. And the truth is that reliable credit information about smaller businesses is not plentiful.

Because of this, credit approval can sometimes take longer than either the vendor or the retailer would like. One way that retailers can help to speed up the process is to provide up-to-date and accurate “Credit Sheets.” According to most vendors, Credit Sheets and/or Credit Applications are essential and should include at least the following information:

  • Billing address, telephone and fax numbers
  • Shipping address, telephone and fax numbers
  • Email address
  • Website
  • Type of entity (Corporation, LLC, Partnership, etc.)
  • Years in business
  • DUNS #
  • Bank information (name, address, telephone, fax, account number)
  • Owner’s Information
  • Industry trade references (specifically, other vendors with whom you have terms)

Vendors will send a form to the provided references and trade associates asking specific questions. For the most part, here is the information they will ask for:

  • Years in business
  • Highest credit given
  • Date of last invoice
  • Terms given
  • Does the customer pay within terms
  • Comments

According to a recent survey conducted by The Credit Collective, LLC, a consortium of children’s products vendors, the most important pieces of information on a Credit Sheet are: years in business, bank information and trade references. In the same survey, over 80% of the vendors said they rely heavily on trade references. Things that are most closely looked at are:

  • Terms with other vendors
  • Credit limits with other vendors
  • Payment histories with other vendors
  • Pre-Collections & Collections Histories

To save time I always recommend that retailers give a pre-printed Credit Sheet to vendors along with their purchase orders. However, I have learned that many retailers unknowingly hurt themselves by providing inaccurate, incomplete, or outdated information.



You're probably a 'non-store retailer'

2. Nonstore retailers, like store retailers, are organized to serve the general public, but their retailing methods differ. The establishments of this subsector reach customers and market merchandise with methods, such as the broadcasting of "infomercials," the broadcasting and publishing of direct-response advertising, the publishing of paper and electronic catalogs, door-to-door solicitation, in-home demonstration, selling from portable stalls (street vendors, except food), and distribution through vending machines. Establishments engaged in the direct sale (nonstore) of products, such as home heating oil dealers and home delivery newspaper routes are included here

Price Collusion

I was employed by and later managed a large furniture store in the south bay area. This store did not have a web site. I developed a web site on my own time and at my own expense. The store I was employed by reaped the rewards of this web site for about 19 months. We did not receive any complaints from vendors about there merchandise being displayed on the Internet.
October of 2004 I left that company and joined another. The new company featured some of the same furniture companies I had featured on the web site. Subsequently the new company began to reap the added sales generated by the web site

Karnataka Bank Ltd. (KTKBANK) - Financial and Strategic SWOT Analysis Review  — PR Carbon
It offers retail trade finance, project finance, export finance, and agriculture finance. The company provides finance for small, medium, and large-scale industries; debit and credit cards; and insurance services and mutual fund products.

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Do it Best selects new EDI services vendor. (Trade News).(Advanced Data Exchange, Internet electronic data interchange)(Brief Article): An article from: Do-It-Yourself Retailing
Book (National Retail Hardware Association)

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