Covering yourself on materials.

[Electricalserv]

I'm starting up on my own and one of my main worries is having enough to provide materials to start a job.

I have thought about getting credit from wholesalers but I'm not sure if they will offer me it so early into trading. I have bought a few jobs cash from them but not enough to show I'm a loyal customer. Do wholesalers usually offer this after a probationary period or is it offered straight away.

My other option is to say I want a 1/3 upfront from customer to cover materials. Now this may lose me work so its a catch 22...

As we all know somebody not paying you can leave you in serious financial trouble.

Whats the best way to go about this?

 

[Kamikaze]

Wholesalers would offer Satan 30 days credit if they thought they would make some money out of it. It should be easy.

 

[Johnny-G]

Generic materials (cables, clips, screws etc.) are really a start up cost and you need a stock of them, there's no point buying 6m of 2.5mm T&E & 10m of 10mm G&Y as each job arises.
If you're serious about the job you should fork out a few bob on some stock.

 

[Octopus]

Apply for credit account(s) and see what happens, if you've got a reasonable credit rating then you should be OK. Failing that do you have a credit card you could use?

Asking for money up front is likely to cost you business.

 

[IQ Electrical]

Credit rating is only part of it, if you take CEF for example, they require 2 trade references and check with your bank that you're 'good for £XXXX' whatever credit you're applying for on the new account.

It becomes very important when your business starts to grow, you need to try to complete the job and get it invoiced before the invoice for the materials is due for payment.

 

[bugsy]

Don't be afraid to ask for a deposit, at least if they become unwilling to pay at the end your only out on your labour, just explain its a matter of trust both ways ,
We always ask for a deposit ( unless its commercial and even then if we offer a discount on materials 9 times out of ten we get it )

 

[mattmoo1974]

MY credit rating is a joke i only had 1 ref and my wholesaler has given me a £500 30 dayer, You dont get if you dont ask my friend

 

[Sintra]

A got a credit account of 5K with a well known wholesaler and i don't even work for myself. No references or anything, the branch manager just filled in what he wanted to see if you get my drift.

 

[Liamsparks]

I'm still currently trading without any accounts at wholesalers and have a very good relationship with the guys I still get the same discount rate (I'm not being fooled). If there is any materials out of the ordinary I do ask the customers to pay for materials up front.

 

[peck06]

Wholesalers will give you a 30 day account no probs. When I first started went into the local wholesalers that the company I used to work for used and opened an account no references, was only looking for 500-1000 a month instead they gave me £3000 a month, they said this is their standard credit offered. I have accounts in many places most I don't ever use. Just be honest with the people behind the desks and most of them are pretty good and once you've been there regularly for 3 months ask for better terms and question every price, thats what I do, even if they tell me where to go. Having a good relationship with they guys (and gals) behind the desk is a must, keep them happy they will sort you out best they can.

 

[V]

i think thats true and they might throw the odd bits and pieces in for free,but dont ask questions about doing the job my local wholesalers has a sign saying we are not 17th qualified please dont ask questions on the counter

 

[DurhamSparky]

my wholesaler passes me work!!! i was sat in there other day just eating my dinner (never bought any thing) just went down for a natter and a coffee!!

 

[james29022004]

I have a credit card used for work purchases so i can use a couple of different wholesalers i can play one off against the other a bit on pricing an account holds you to one place and i find they gradually creep up the prices!

 

[james29022004]

Credit rating is only part of it, if you take CEF for example, they require 2 trade references and check with your bank that you're 'good for £XXXX' whatever credit you're applying for on the new account.

It becomes very important when your business starts to grow, you need to try to complete the job and get it invoiced before the invoice for the materials is due for payment.

A very good point-it is easy when you get busier to leave invoices too long-try and get into the habit of giving an invoice as you walk out the door 9 times out of 10 they will pay there and then,also put a line on bottom of invoice that payment must be made within 7 days and all goods supplied remain your property until paid for in full

 

[peck06]

Not if you have several accounts in different places and don't let them hold you to ransome. My old company used to get moaned at by the wholesalers for not spending enough with them. I am just honest with mine, I do use one more than most but say to them all I may not use you often but I will do my best with the work I've got. They all understand, the manager of one just said no worries mate, if its there you can use it, if you get stuck for materials give us a try. Never met a friendlier store manager.

 

[DurhamSparky]

always use Bemco in durham for 99.9% of supplies!! unless im out away from area i use elec fix or a local independant and pay cash!

 

[oldtimer]

I have cash accounts or in other words I get the discount but have to pay up front so I do this with a credit card and to be honest I am never out of pocket by doing a job for a couple of days ie do the job on Monday customers money clears for Thursday I am not chasing for credit as I feel I need to build up a reputation before they can trust me.

 

[BertUK]

CEF accepted me without any checks or anything and i had only been in a couple of times so i wouldnt think u will have a problem

 

[Amp David]

Deposit for materials everytime for me.

If the customer refuses or moans, thens its usualy a good indication if they are going to pay up once completed.

 

[V]

dont you think its best to try and get money for each stage of the job, as for getting money for materials sometimes they want to get their own, and we all know how that can go cheap stuff but they want it fitted