Line of credit with supplier for new business

athenajm

Hi, I'm posting here for a friend who has recently set-up as a self-employed mechanic. He is interested in getting a line of credit with an autoparts supplier. I have just phoned them and they have said all he needs to supply is letter headed paper confirming the company details and they will then possibly credit check him to set up the account.

He has only been trading for a month or so, has no other suppliers (he normally pays cash for the parts with the above mentioned supplier), so how exactly do they credit check him? Or do you think they would do a personal credit check (if so he'll probably fail). How do you build good credit with a business? He hasn't tried to get a business bank account as he assumed (rightly or wrongly) that most banks would decline him as he is unable to get a personal bank account at most places.

Thanks for your help

steve1980

Credit check will be a credit check.

He really needs a business bank account. Try HSBC

bengalknights

Credit check would be against him as a sole trader.