Tuesday, July 21, 2009

Establishing Credit and Purchase History with a Wholesaler by Worldwide Brands

by Chris Malta, Founder and CEO of Worldwide Brands

Wholesale Tips Series - How to find wholesalers, doing business with a wholesaler, what to expect when purchasing from wholesalers and more.

Tip #11

“Net 30” is a term used in association with payments. It specifies the credit terms your wholesaler allows you. When Net 30 appears on your order and invoice, you have been extended 30 days of credit from the date of the invoice before you have to pay for the goods listed on the invoice. There’s an advantage to having terms of payment. The payment terms allow you time to sell the invoiced products, and receive the cash from your customers, before you must PAY the wholesale supplier for the goods.

New eBay Sellers cannot expect to get Net 30 terms from the wholesale supplier from the start. Wholesale suppliers credit departments determine credit terms based on your business credit HISTORY. Your personal credit history might help you secure an account but it’s your buying performance that secures you terms. Online retailers must typically start by paying cash up front for all purchases or by using a credit card. Once you have developed a good purchase and payment history, your wholesale supplier will consider your request for credit terms. The volume you buy will determine if you can get Net 30 or better.

You begin building your business credit history from the point you first order and pay for goods from the wholesale supplier.

Worldwide Brands is an eBay Certified Solution Provider, providing product sourcing access and information for eBay sellers. They are the publishers of an extensive directory of legitimate, fully-verified ecommerce wholesalers and manufacturers.

1 comment:

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