 Re: Net 30 Approval Process?
It all depends on the references you are contacting. If you are contacting one of the large wholesaler such as Broder, San Mar or TSC you will most likely be told to fax your request. Others may be less formal. You are just requesting info on your potential customers pay habits in order to make your own decision about extending them credit. Banking info works the same. Just call the bank and ask. Most are small business friendly and will tell you how to go about getting the info you need. Your bank should be very helpful here too. Its in their best interest to look out for you. Be honest with them and tell them what you are trying to do. Have a sit down conversation with your banks business manager.
NACM is a great organization. You only need to be a part of it if you plan on extending a lot of credit.
Why are you looking to extend credit to someone? Is it a prereq. to doing business with them? Have you asked them to pay COD or even 50% down & 50% upon delivery? These are common terms. Net terms are for the big boys who are well capitalized. |