Multinational supplier wants to see Accounts

[C Lee Farquar]

New one on me and just wondered how widespread it is?

We've been busy and close to our credit limit for a while so asked if they might increase it, as they have done in the past. They came back that they'd need to see our audited and management accounts.

We've always paid on time. I'm guessing it's because I'm a sole trader so they can't see anything at Companies House.

[StevieBee]

Yes, quite common - and should be more so IMO. Would reduce a lot of bad debt.

[C Lee Farquar]

Thanks both, first time I've been asked since 1992!

Not too keen as they are also a competitor so we'll pay fortnightly

[ConnectionError]

Are your accounts audited?

I wouldn't worry about them being a competitor, if they are large the accounts dept will be reviewing your accounts and assessing the risk, not passing on any details.

As an alternative why not pay weekly?

[Eric Mc]

What type of accounts do you file at Companies House - full or abridged?

[Stuart70]

Normal - I would want some assurance that I was not being used as your funding of last resort.

Hopefully this is part of your need for more supply as part of your growth and success, in which case I am sure your supplier will be happy to support; but you can see why they would want reassurance.

[C Lee Farquar]

Accounts aren't audited, not that know that.

Just not something I've come across before so I wasn't sure how common it is.

[Eric Mc]

Can you answer my question? What type of accounts are filed at Companies House - full or abridged?
I'm assuming your business operates as a limited company.

[C Lee Farquar]

C Lee Farquar said:

I'm guessing it's because I'm a sole trader so they can't see anything at Companies House.

Original post

[DaveA8]

C Lee Farquar said:

C Lee Farquar said:

I'm guessing it's because I'm a sole trader so they can't see anything at Companies House.

Original post

You could always refuse, of course the fact you buy stuff from them is an indicator that you need them. I learned not to take this things to heart since unless you are the ultimate Alpha customer, suppliers typically have the upper hand. I'm sure people who work for large powerful companies would disagree but being a small manufacturer, we actually need to manage our suppliers more than our customers, it's really infuriating but if components are only available from 2 suppliers both equally self entitled, you learn to swallow your pride.

[Eric Mc]

C Lee Farquar said:

C Lee Farquar said:

I'm guessing it's because I'm a sole trader so they can't see anything at Companies House.

Original post

Fair enough.

Definitely no audit requirement then.

The choice is yours as to whether you want to provide then with the information they are requesting. It depends on how badly you want their business.