Financial Matters

Trading Accounts

You will need references for trading accounts, normally a bank and two independant companies that you have traded with (for most brewers). They take time to set up so you may have to pay cash or use cheques for the first few weeks if you leave it to the last minute.

The vendor will give you a list of the people that he deals with. Have two of everything, two butchers, two bakers, two greengrocers, two brewers etc. Be assured as soon as they have your business, in the majority of cases, the quality or delivery tails off, unless you are extremely lucky.

The brewers will fight for your business if you are not tied to a pub company as a supplier. Make sure you go for the maximum discount, without committing yourself to anything in terms of targets. Do not agree to direct debit if you can possibly help it. Only use a direct debit for annual subscriptions because you invariably forget to pay those. On day-to-day deliveries avoid Direct Debit accounts like the plague, have a monthly account paid by cheque. If your order is incorrect and they deliver too much or the wrong products, your account nearly always is debited for the whole of the delivery note, and a credit note will be issued. Invariably it will appear on next month’s and in some cases two months later account, playing hell with your cash flow if it is a large amount.

VAT

It is vitally important that you register for VAT (assuming that the existing turnover is above the current minimum VAT level).

Discounts

If you pay cash for anything always get the best discount. You often find that an account holder has negotiated a good discount for paying monthly. If you pay cash your discount should be higher than the monthly deal.

Good Money Practice

It is very good practice to play the money manipulation game in terms of using credit and cash discounts. The money is better in your bank account than someone else’s.

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