Distributor Credit Application: Fill & Download for Free

Congratulations on the opening of your new salon.The best way to establish accounts with salon product suppliers and/or manufacturers is to contact them directly through phone calls, emails or even social media channels such as Facebook, Twitter or similar.Some manufacturers of salon products sell directly to salon owners, some only through authorized distributors and some through multiple channels.If you wish to become a speciality salon offering an exclusive high end brand such as Aveda or Kerastase, there are a different set of qualifications you will need to meet with the manufacturers of those lines.In that case you will definitely need to make direct contact with the manufacturer.In some cases high end line manufacturers require salon visits before making a decision to allow a salon to become a specialty salon.Whether you buy directly from the product manufacturer or their designated distributors, you probably will not be able to buy on consignment, at least initially.After filling out credit applications you may qualify for a 30 day net payment schedule.Some manufacturers and their distributors will only offer cash and carry options until you establish a history.No two manufacturers or distributors are they same. They all set their own ordering and payment policies.Please let me know if you have additional questions.Best of luck to you in your new endeavor.

Sorry to say it doesn’t work that way, and this is precisely why you should have some actual experience with the products you want to sell. You will need to have the proper licenses in place. The source may even require that you add them as a rider to your liability insurance policy… yes, you must have this even if you are e-tailing.In fact, even if you are registered to do business the source may not allow online sales, or they may have a contract with someone else to do the same thing, or they may not wish to work with you for a variety of reasons.So, I suggest that you contact the potential source (preferably by phone), explain what you want to do, and complete their requirements. It will definitely include a credit application and other things (like proof that you can operate a business where you plan to have your office).

In my business most of my customers are distributors and business owners. To become a distributor you have to demonstrate the ability to be able to sell at least $2000.00 per month of my cleaning chemicals.As all my distributors expect 30 day terms my business is effectively financing their purchases for upto 60 days. I currently finance $100000s this way.For example, distributor xyz buys $2000 worth of laundry powder on March 1 2018. That distributor doesn't have to pay that bill until the last day of April. I have to finance, myself, their purchase for those two months.To establish credit worthiness my customers all complete a credit application with me, which includes 3 existing customers as references that I call to establish their payment history. They provide other details too, including a personal guarantee to pay what they owe in case their business folds.What have I learned? In the 14 years I have been in business for myself I have only had half a dozen customers go broke on me where I lost money. If the total added up to more than $10000.00 I would be surprised. I have been lucky and careful, never being afraid to ask my customers to pay up - something I see other business owners struggling with.I have also learned that about half my customers, business owners, struggle to pay on time but do eventually, upto a fortnight late (I am ok with this for the most part as I know their customers run accounts too). Most of the other half pay on time, with approximately 5% almost permanently on stop credit, until their account is sorted.I pay my suppliers on time.Now for what I have learned of normal people's finances through life, church (I am a church board member) and my business, is this:Many people are a matter of weeks away from bankruptcy. If their income stops, they are screwed. Almost everyone has a credit card debt, a personal loan to a bank or family member and rent or mortgage obligations. The other startling observation is how little people have as savings for an emergency. Many people I have helped over the years do not even have 1 weeks income in their bank account.My takeaway from all this is, generally speaking, people spend up to 10% more than they earn and fund that gap with credit in the hope their income improves in the near future.Even when their income does improve or they are gifted with an unexpected work bonus, tax refund or other, they spend it as well!To highlight this, I will give you a real life example of something that happened in my business a few years ago when we changed from cash payments of wages on a Friday to bank transfers.Friday all staff were given an envelope with their weekly wages in it. However this is time consuming, frought with danger (returning from a bank with $1000s in cash every week) and inefficient. So I decided to do bank transfers.One day, not long after, one of my staff asked if it were possible to do the transfer on the Thursday night because he paid his rent on the Friday and he now wasn't receiving his pay until the Monday because of how the banks work. I agreed.Then one other day, many months later, the bank could not do the transfer on that day for whatever reason (a bank issue) and it went in the next day. This caused a major issue for several staff who had no spare cash in the bank to pay their bills. I lent them money from my own pocket.So we moved the wages payments forward to Wednesday. This was ok until again their was a bank glitch and the wages were a day later than normal. This time I had one furious employee who vented big time.I offered to pay him cash that day and then explained to him, I was still paying earlier than I was legally required to despite being later than normal. What he said next astonished me, particularly after he gave me a mouthful only moments earlier.He said, “You pay a lot earlier than anywhere else I have worked. You pay me a week earlier than my last job.”From that day I realised how people just spend what is there to be spent. He effectively received a weeks pay earlier than he had ever got it before. Instead of him having a week in the bank as a backup, he spent it.That's what most people do, in my experience.