Keeping your money longer means it can earn interest in the bank or be available for an emergency when cash is tight. Trade credit is short-term interest-free credit. You may have 30, 45, 60 days or more from the date your ordered goods leave the supplier to pay for the goods. To apply for supplier accreditation, which is trade credit, some suppliers will request a letter of intent. This letter of intent includes details about your company, your financial institutions, your credit history and your financial references.

Enter your company’s and the supplier's contact information. Depending on the size of the supplier, the letter may go to an individual or to a department.

Describe the specific trade credit terms you would like with this supplier and start a new paragraph. Standard terms include 15, 30, 45, 60 and 90-day terms. The most common terms are 30-day terms, meaning you have 30 days from when ordered goods leave the supplier’s warehouse to pay for the goods.

Enter information about your business including the type of business -- sole proprietorship, LLC, partnership, corporation or other -- the number of employees and the date the business was formed. Additionally enter your company’s tax-ID number here. For sole proprietorships, this will be your Social Security number. Start a new paragraph.

Enter contact information for your bank. Type “Type of Account: “ and specify whether the account is a checking, savings, money market or some other type of account. Enter the name of your personal banker if you have one. Add his contact information including his name, telephone number and email. Start a new paragraph.

Enter contact information for three business trade references. Start a new paragraph after each reference. Choose suppliers you have worked with the most to be your trade references. Ask them for permission to list them on your letter of intent because the supplier you are seeking trade credit with will contact them seeking information about your reliability.


For sole proprietors who do not want to enter a Social Security number on a letter of intent, get a EIN (tax ID) number from the IRS. It is easy, and it is free.