New start-ups face significant challenges obtaining credit and financing from banks and suppliers. They have no financial track record, no credit history and no trade references in the industry.
Entrepreneurs with this “unknown” status may be turned away from setting up accounts with wholesale vendors and suppliers. Or, they may be required to pay in advance or at time of delivery on purchases (C.O.D., cash on delivery). This ties up cash, reducing the cash available for expansion and limiting the ability to take on large projects.
Martech is sometimes approached by new, small customers to setup open purchasing accounts. Having grown from a entrepreneurial start-up ourselves, Martech takes a supportive attitude towards new businesses and we can use our financial assets as a tool to support and grow these customers.
Case study: a small business develops and grows with Martech’s support
In October 2008, a new start-up approached us to open an account. The customer had technical experience, a small list of loyal clients and the capacity to grow. Martech’s sales management and accounting departments decided to start the account with a small credit limit and then worked together on arranging special payments for large project orders. Since then, this customer has respected our payment terms and we have been able to raise his credit limit as time and experience have gone on.
Today, this customer always uses Martech as a trade reference when he needs to setup an open account with a new supplier. We are always able to provide favorable comments when his supplier calls. His pool of suppliers and business has grown significantly in last couple years. Further, his sales with Martech have grown every year since 2008.
Success for our customer, our company and our manufacturers!