Some issues with a new company.

[svet73]

Hi, everyone, I am Sarah.
We are starting up a new business, we will import some goods from China. Our potential supplier is asking for a credit information on our company and financial statements. We don't have any history yet. Would be no problem with credit information as it's clear but where to get financial statements from? :|We have been registered just last month.
Did anyone have a similar problem when they started their business? What are your solutions and advices in this situation?
Any help will be most gratefully appreciated.
Thank you very much.

 

[GraemeL]

Hello Sarah,

Its common to seek information like this if a supplier is to give credit terms. You will just need to be honest and say that you have only traded a short time, so do not have and financial history.

If you are paying your Chinese supplier with order, it will not matter at all.

If you are doing anything other than payment with order, then you will have to try to reach a compromise with them. Remember they are taking more risk than you are.

Best of luck

G

 

[svet73]

Thanks a lot for your help. I really appreciate it.

 

[dgoodhans]

Hi, everyone, I am Sarah.
We are starting up a new business, we will import some goods from China. Our potential supplier is asking for a credit information on our company and financial statements. We don't have any history yet. Would be no problem with credit information as it's clear but where to get financial statements from? :|We have been registered just last month.
Did anyone have a similar problem when they started their business? What are your solutions and advices in this situation?
Any help will be most gratefully appreciated.
Thank you very much.

Sarah the aim of every business is profit maximization,it will amount to irrational venture for a business man to give off his good on credit without evidence of some level of good financial standing,tell him the truth about you financial standing,if there was any business venture within the stated one month period then let him know about.again you can source for fund else where to get your business going,no thanks to credit crunch anyway,but if you need suggestion on how to raise money, pls contact me as soon as possible,I don't know how much you need to get the goods to warehouse,nevertheless I will suggest ways on how to raise the initial capital out lay you may need to kick start your business.

 

[billyrobert]

You should say the truth. I think the other company can't trust for trading with new company. If you have a Pay Pal account. you show it to this company.maybe helpful for you.

 

[faradaykeynes]

escrow is another way of secure business from buyer and suppliers point of view

 

[maxdmind]

Just tell them the truth is okay,I am a chinese I/E company,You just need give them order and to be honesty,You know when you guys first coorpetate with each other the seller need know something about you,so they asked for that information,but that is no the key,The key part is trust,So just tell them the truth

 

[fiberfactory]

We seldom ask clients' credit status,cos we support every potential customer to grow up.So don't worry about that you are just freshman on trading.Only if you can pay the deposit,the supplier will produce the goods for you,and then,once finished mass production,they will send out goods firstly for shipment,and then ask for balance against the original BL.

 

[svet73]

Thanks a lot guys. Your help is invaluable. Really appreciate it.