Why do I need a Business/company letterhead ??

[Knugs]

I'm applying for a trading application and 2/3 distributors require Company letterheads. Can someone explain to me why? I havent thought about company letterheads and dont see why this should be a requirement to be trading with distributors.
What is the easiest solution to this?

Thanks

 

[Bill1954]

The easiest solution is to use an office program to create a letterhead. Either that or download a template and customise it.

 

[Paul_Rosser]

It's a bit outdated but a lot of companies require a letterhead as proof you are acting on behalf of that company, even though as Bill said anyone can knock one up using a word processor.

Some companies will now accept an email from a domain registered by the company in question, but sadly if thats what distributors want to feel safety in dealing with you then best just give them what they ask for.

 

[vvaannmmaann]

Aye but there is a difference between proper printing and something you knock of of the desk top printer isn't there?

 

[Knugs]

When they ask for the company letterhead they just want a piece of paper with the logo? Its seems a bit strange to me. You can just make it yourself and actually do it quite well too (if you know how to use the appropiate software) but I havent got a clue how this proves anything.

 

[MyAccountantOnline]

I'm applying for a trading application and 2/3 distributors require Company letterheads. Can someone explain to me why? I havent thought about company letterheads and dont see why this should be a requirement to be trading with distributors.
What is the easiest solution to this?

Thanks

I think its quite an old traditional practice to give the distributor some assurance that you are a genuine trader despite the fact you can knock up a letterhead yourself or buy one from somewhere like Vistaprint which could look convincing.

If you are going to need letterheads why not get some printed now? By the way not recommending Vistaprint a lot of good printers on here will do a much better job.

 

[Mayor]

Aye but there is a difference between proper printing and something you knock of of the desk top printer isn't there?

only if its banknotes. We have an Oki colour laser - with decent paper, you'd never know it had been done on a desktop.

 

[Paul_Rosser]

Aye but there is a difference between proper printing and something you knock of of the desk top printer isn't there?

Not with the quality of business laser printers these days.

Especially as some will accept a faxed copy, which ends up looking like it's been printed on a cheap inkjet anyway.

 

[Adam.Vause]

It validates you are from the business and by law you are suppose to have you company details, registration number and VAT displayed on all your stationary.

 

[Ashley_Price]

Aye but there is a difference between proper printing and something you knock of of the desk top printer isn't there?

Very much depends on the quality of the paper and printer. With inkjet printers now producing photo quality prints, it's unlikely that you could tell the difference.

We stopped using professionally printed stationery when we had just had 1000 very high quality letterheads printed only to then be given three months notice that we had to leave our office.

Now, we spend the money on getting very good quality business cards printed, and do the letterheads on the printer as we need them.

 

[Paul_Rosser]

It validates you are from the business and by law you are suppose to have you company details, registration number and VAT displayed on all your stationary.

It doesn't really validate anything though as you can easily scan a letter provided from a company, remove the header and then print it to produce your own copy of their letterheaded paper.

 

[Ashley_Price]

Often they now ask for a VAT number as well, so that cuts it down a bit. In the past we've had to supply testimonials from other suppliers.

 

[10032012]

I think its fair enough. The letterhead should contain (legally) your registered office, company number and company name. They use this in a similar way to an utility bill and they usually require that too so will check the details match up.

Its a traditional practice (like @MyAccountantOnline says) and you will be surprised how useful it is. The more different information you require the more likely you will work out non-genuine applications.

This is why (also traditionally) there were always a lot of forms to fill out requiring loads of signatures for various things... most already have your details on file, but when you deviate from whats already known, it raises flags that something is up. Catches a lot of fraud.

 

[Knugs]

I think its quite an old traditional practice to give the distributor some assurance that you are a genuine trader despite the fact you can knock up a letterhead yourself or buy one from somewhere like Vistaprint which could look convincing.

If you are going to need letterheads why not get some printed now? By the way not recommending Vistaprint a lot of good printers on here will do a much better job.

Not with the quality of business laser printers these days.

Especially as some will accept a faxed copy, which ends up looking like it's been printed on a cheap inkjet anyway.

good point. They want it faxed anyway

 

[10032012]

It doesn't really validate anything though as you can easily scan a letter provided from a company, remove the header and then print it to produce your own copy of their letterheaded paper.

The purpose isn't to accept your word at "face value". Hardly any companies open up trade accounts without background checks. The littlest amount of information they have on you, the worst it is for them.

I wonder what would have worst consequences... a shot-in-the-dark approach filling in a single form... or filling in an application form and providing fabricated documents. If there is a case of fraud potentially to be found, you want to have as much information provided to show the person was intent in deceiving rather than simply being a mistake.

 

[Adam.Vause]

It doesn't really validate anything though as you can easily scan a letter provided from a company, remove the header and then print it to produce your own copy of their letterheaded paper.

When i registered my business account at the bank they asked for my letterhead and my passport. I got told the letterhead was so they could validate it was a genuine business. I'm assuming they use that information along with the information you have given them to make sure you are who you say you are.

I guess anything can be forged if you really wanted too.

 

[10032012]

They don't think about forged letterheads (Bank).

Their only concern would be if you were unable to produce a letterhead. They assume every business has thousands of professionally printed letterheads, and the tick box here is a letterhead that hasn't been printed on with a letter. They really don't care. If you can produce a blank one "you must be an officer of the company".

Before they will give you any form of credit, however, they will do all sorts of checks and get a personal guarantee. In the meanwhile they are happy to invest your deposited cash....

 

[KM-Tiger]

When i registered my business account at the bank they asked for my letterhead and my passport.

If it's a Ltd Co they will want to see the Certificate of Incorporation, and some used to insist that that was the original. Tricky if you have formed the company online and only have an electronic original.

Many years ago on this forum a member was intending to take a floppy disc (that's how long ago it was) to the bank to present as the Certificate of Incorporation. Sadly I don't think he ever reported back on the outcome.

 

[10032012]

@KM-Tiger most banks don't even ask for it any more. But I agree, I had that problem before with a company formed digitally online, the bank insisted on an original paper certificate... pointless really when you can check online!

 

[GarethShaw]

Agree with the replies on here. It's really to weed out the time wasters.

 

[Knugs]

I think its fair enough. The letterhead should contain (legally) your registered office, company number and company name. They use this in a similar way to an utility bill and they usually require that too so will check the details match up.

Its a traditional practice (like @MyAccountantOnline says) and you will be surprised how useful it is. The more different information you require the more likely you will work out non-genuine applications.

This is why (also traditionally) there were always a lot of forms to fill out requiring loads of signatures for various things... most already have your details on file, but when you deviate from whats already known, it raises flags that something is up. Catches a lot of fraud.

I can understand that

If it's a Ltd Co they will want to see the Certificate of Incorporation, and some used to insist that that was the original. Tricky if you have formed the company online and only have an electronic original.

Many years ago on this forum a member was intending to take a floppy disc (that's how long ago it was) to the bank to present as the Certificate of Incorporation. Sadly I don't think he ever reported back on the outcome.

Just wanted to say that the Bank still wants to see the letter of incoporation and a passport but no letterhead.

 

[Jet Virtual]

A professional company letterhead is all just image ... but isn't image everything?

 

[David Griffiths]

It's from the BIg Boys' Book of How to Open a Trade Account. Ask question, tick box, next question. Note that thinking is not part of the process.

 

[David Griffiths]

Just wanted to say that the Bank still wants to see the letter of incoporation and a passport but no letterhead.

Most of them don't want the certificate of incorporation any more, and I've known some not ask to see the passport - everything is checked out electronically

 

[Knugs]

Most of them don't want the certificate of incorporation any more, and I've known some not ask to see the passport - everything is checked out electronically

I actually asked today and that was their response

 

[10032012]

Banks used to pretty much take your word for it until lending significant money, now they have subscriptions with Experian etc. and check everyone out - the laws have been tightened.

They will always request identification as of the anti-money laundering regulations.