We are opening a second banquet facility across town. When setting up brand-new accounts with food and beverage distributors for a new location under a new LLC, do most vendors demand pre-payment/card on file for the first few months, or can you get Net 30 right away based on the parent company's credit history?
Setting up trade accounts for a new venue location – Credit Terms vs. Pre-payment?
by Nonna Birds -
Number of replies: 3
In reply to Nonna Birds
Re: Setting up trade accounts for a new venue location – Credit Terms vs. Pre-payment?
by Sandra Fas -
If the parent company guarantees the account (a cross-corporate guarantee), you can usually get Net 14 or Net 30 right out of the gate. But if the new LLC operates entirely independently without shared credit lines, expect most broadline suppliers to keep you on credit card terms for at least 60-90 days.
In reply to Nonna Birds
Re: Setting up trade accounts for a new venue location – Credit Terms vs. Pre-payment?
by Jana Zejbech -
Makes sense. I'm filling out vendor applications this afternoon and saw how vendor onboarding portals (like https://atlanticfoods.biz/become-a-customer/ ) handle credit references for multi-entity businesses. I'll make sure to attach our primary entity's financial statements so we don't get stuck paying by card on $15k opening orders.
In reply to Jana Zejbech
Re: Setting up trade accounts for a new venue location – Credit Terms vs. Pre-payment?
by Nonna Birds -
Smart move. Also, offer to set up ACH auto-pay. Distributors are way more willing to extend 30-day terms to a new customer account if they know the funds are automatically pulled on the due date.