Business Banking - Dropshipping and merchant accounts

[KingRichard]

Hi guys,

Looking to set up a very simple online business, basically selling products on line. Obviously need a merchant agreement from the bank, but I've been told that banks don't like drop-shipping. Is that the case?

I want to open an account but would like to know how I should approach it? And I understand I need to pass some kind of check to open a merchant account (basically so they will allow an overdraft if customers want refunds without enough funds available), will the dropshipping factor into that decision?

Thanks in advance chaps

[Piglet]

Products

[KingRichard]

Piglet said:

Products

Big rubber willies to you and I my friend...

Any ideas?

[rpguk]

In short - yes some can be iffy about it, asking if you hold your products in stock.

I've not run a dropshipping company before but have run a company which uses just in time supply (think that's the buzzword - i.e orders a truck load of ordered stock from the supplier each day) and the bank manager just wanted assurance that the supplier were reputable. Think it probably affected the terms we were given too (45 days IIRC)

Remember banks can be quite closed when it comes to the adult industry too.

Edited by rpguk on Thursday 9th August 19:08

[KingRichard]

rpguk said:

In short - yes some can be iffy about it, asking if you hold your products in stock.

I've not run a dropshipping company before but have run a company which uses just in time supply (think that's the buzzword - i.e orders a truck load of ordered stock from the supplier each day) and the bank manager just wanted assurance that the supplier were reputable. Think it probably affected the terms we were given too (45 days IIRC)

Remember banks can be quite closed when it comes to the adult industry too.

Edited by rpguk on Thursday 9th August 19:08

Ok, thank you. Maybe just set up as Mr X trading as XXX (quite appropriate) to start with then. Sod it, I'll tell them I'm selling mobile phones or something. They won't bloody know!

[escargot]

KR, have you considered using someone like Worldpay?

(btw, i've been reading your threads with interest, i'd be interested in chatting to you about potentially investing/backing/joining with you if you'd consider it?).