Wednesday, March 18 2015
When you are building your business, special care should be taken to watch out for the companies and individuals who help you along the way. Relationships with suppliers and vendors should receive special consideration both for the purposes of business operations and for building business credit.
Because, by paying early and treating these accounts as important, you will both build a positive relationship with the companies and you will build your business credit profile.
One example of how this can help comes from the direct mail industry. A letter mailing company was able to keep their inventory prices down while paper prices industry wide were going up. How? Because they had established a great relationship with their paper suppliers. Their prices eventually went up some, but they did not take nearly the hit that others in their industry took. Believe it or not, this was because of the simple fact that they had built positive relationships with their suppliers.
Those good vendor and supplier relationships will help you build business credit, too... and because of this your company could experience the benefit of a little "good faith" effort right now for many, many years to come.
When your relationship to vendors and suppliers is healthy, you can enable those companies to grow with yours and make the relationship as beneficial as possible for everyone involved. As you use vendor and supplier credit to build business credit and your business, remember to attend carefully to those accounts and relationships you're building!
We can help you obtain money and credit for your business with our TRW Business Credit and Financing Suite. Let us know how we can help.