Trade references

[glenm]

Ok a little background, brought a ex hotel 4 years ago and turned it back to a hotel, made a good living (better than expected) since but with a baby on the way we have sold.

i am returning to what i know which is computers/IT, initially i was planning on continuing to do house calls which i have continued to do part time while running the hotel with my wife but decided now to go retail too.

so i plan to open a shop selling componants and consumables along with repairs/builds and network installs with a view to expand into home automation when i feel the time is right.

I have secured premises soon to be vacated and have set myself an initial startup budget of £25k

the problem i am having thus far is trade references, i have contacted many distributors enquiring about trade accounts and the fact they ask for trade references of which i cannot supply as it will be a new start business.

i am not asking for credit, simply a cleared fund account with an initial stock of around £4-6k but as of yet not one has bothered to reply to my queries regarding furthing an account with them.

Has anybody else had this sort of problem? i know its common practice to ask for references but i expected that being a new start, having none would be taken into account.

at this rate ill be having a very empty shop or having to buy from a supplier and making 0 profit on sales which kind of defeats the point of the shop.


cheers
Glen

[Ian J]

Originally Posted by glenm

i have contacted many distributors enquiring about trade accounts and the fact they ask for trade references of which i cannot supply as it will be a new start business.

Judging by the way you have worded your post you have been negotiating impersonally by post or email. Why not telephone your potential suppliers and ask the question directly ?

[glenm]

your quite correct, The only reason i had emailed them is that all the companys state "If there are any queries regarding setting up the account please contact us at (enter email address) or tel us on XXXXXXX"

i just took it that as email was listed first it may be there preference to dealing with enquiries, ill try ringing them and see if it changes anything.

cheers
Glen

[dianesr]

Hi Glen, i have recently set up a shop selling soft furnishings gifts etc and have found exactly the same problem. I have had to deal on a proforma basis with wholesalers, distributors manufacturors etc. Once you have built up a trading history with them( all be it a short history) you will then find them more hospitable to the idea of setting up an account without the business references. This does not solve the problem of having to pay up front and the negative cash flow probs that causes, but it was the only sure fire way i have found myself
regards
diane