Businesses of any size have a very difficult time operating without credit. Good credit will allow a company to take advantage of opportunities and sales, even when cash flow is tight. It also helps to ensure the materials such as Heavy Hex Bolts, Heavy Hex Screws, Headcote Screws and other Building Fasteners are in stock well before the project is scheduled. When companies are just starting out they need to work hard at establishing good credit. Even established businesses need to jump through a few hoops when dealing with suppliers for the first time. Help your business by building up good credit at your preferred fastener distributor.
Start With a Manageable Order
You may want to put all of your requirements into that first order, but slow down. It’s better to submit a manageable P.O., then get it delivered, invoiced and paid. Do that two or even three times before placing a larger order. This may seem counter-intuitive, why not go for the gold and show this fastener distributor what size of an account you really are? Issues will arise however, if you can’t make that initial payment. Your attempt to build decent credit will flop.
Start small. Those large orders will come in time.
Stay On Top of the Paperwork
It’s important that you track those first few orders carefully. Shipping and receiving should be checking the packing slips and purchase orders. Accounting should be checking them both as well. Look for proper quantities and price figures, as well as other essentials like taxation codes, remit to addresses and any currency information. This is no time to make a mistake, so watch carefully and keep the paper trail solid.
Pay Your Freight Bill
It is just as important to pay your freight bill as it is to pay the supplier. Sometimes this is a non-issue if the supplier includes freight costs on their invoice. Other times you will need to pay the shipping company cash. But if you have credit with the shipping company your fastener distributor prefers, be sure to stay on top of those bills as well. Otherwise you may have trouble placing an order without arranging ahead of time for third party freight.
Building up good credit at your preferred fastener distributor is a wise business decision. It provides the flexibility and savings that your company needs.
Started my career in the fastener world in 1969 at, Parker Kalon Corp. a NJ based screw manufacturer located in Clifton, NJ working in inventory control, scheduling secondary production and concluding there in purchasing. In 1971 I accepted a sales position at Star Stainless Screw Co., Totowa, NJ working in inside sales and later as an outside salesman, having a successful career at Star I had the desire with a friend to start our own fastener distribution company in 1980 named: Divspec, Kenilworth, NJ. This was a successful adventure but ended in 1985 with me starting Melfast in August 1985 and have stayed competitive and successful to date. Melfast serves the OEM market with approximately 400 accounts nationally.