Trade Accounts, Explained

What This Guide Covers

Almost every NZ trade and wholesale supplier offers a trade account, but the process of opening one — the application, the trade references, the personal guarantee, and what happens if it's not paid — is usually only explained on individual suppliers' own "apply now" pages. This guide covers it neutrally, from what a trade account is through to what happens if one falls into default.

Every Trade Accounts Article

Getting Started

• What Is a Trade Account? (NZ Guide) — the definition, and how it differs from a regular account
• How Does a Trade Account Application Work in NZ? — the step-by-step process, with what suppliers actually check
• What Is a Credit Limit on a Trade Account? — how limits are set, and why 20th-of-the-month terms need more than a month's spend

Guarantees & References

• What Is a Personal Guarantee on a Trade Account? — what it means, and whether it can be negotiated
• What Are Trade References and How Many Do You Need? — including a free NZ template

When It Goes Wrong

• What Happens If You Default on a Trade Account in NZ? — the real consequences, and how to negotiate before it escalates
• What Does "Account on Stop" or "Credit Hold" Mean? — why it happens and how to get the account released

Related Reading

• Trade Credit, Explained — the underlying concept a trade account puts into practice
• Payment Terms, Explained — every common NZ payment term a trade account might use
• Trade Accounts vs Business Instalments
• Accounts Payable, Explained — creditor days, payment runs and paying suppliers on time
• Business Credit guide — the PPSR, retention of title, guarantees and credit checks
• Cash Flow guide — the cash conversion cycle, working capital and seasonal cash flow