One thing that can help your cash flow, especially when you’re a younger company getting up and going, is to get as many open accounts as much as possible with your suppliers.

Sometimes that can be easier than it sounds.

You may reach that point sooner or later, what you have to get something from a larger company. Depending upon the company, you might run into a rather rigid credit department. They might require so many years of financial statements or they might require a certain level of credit score. Perhaps, they might even be at the point where they just don’t start up anybody on open account terms, but want you to build up a little bit of history with them.

So what can you do, when you run into somebody that’s playing the hard-line and not being as flexible? Here are a few thoughts:

1. Have your own credit references set. Be proactive, have your own set of credit references developed. Be establishing some good relationships with certain suppliers that will back you up as references. Of course, don’t abuse the privilege. Have enough that you can rotate them around, so that you’re not dependent upon the same three folks each and every time.

2. Work with the salesperson that brought you into the account. Sometimes the sales people know the angles. They know how to work their internal credit department. See what they can do to get you established with an open line.

3. Have your balance sheet together. In certain cases, you might be able to show a strong enough balance sheet to this inflexible credit department and be able to buy yourself some room right there.

4. Get agreement on starting out rather small. Start out with a small order, something rather bite sized, and build up the history quickly that way. Get some agreement on what it will take to get to an open account basis. If you don’t, that point can get stretched out.

5. Sometimes you may have to find alternate suppliers. Sometimes you’re just going to run into credit departments too full of themselves and lost outside perspective. You may just need to go ahead and take some business elsewhere. But let the credit department know that and let the salesperson know that too. You’ve got some leverage there. Use it.

Those are some thoughts. I hope some of them help you in your quest to get open accounts and move away from having to deal with cash in advance.