What Type Of Company Are You?

[Concrete guy]

Why wouldn't a company deal with you if you were not limited? That seems a bit archaic.
I've had plenty of cash off blue-chips and it's never been questioned. I'm Ltd now but even when I was sole trader I dealt with them.

Not grilling you here, just wondering what their reasoning was.

It's a big UK company, currently FTSE250 but knocking on the door of FTSE100.

Fortunately for us they are very ethical in the way they do business, no Tesco syndrome at all, but they like things done a certain way which is fair enough. We are supplying a lot of product though, this isn't a small contract.

 

[Dan]

It's a big UK company, currently FTSE250 but knocking on the door of FTSE100.

Fortunately for us they are very ethical in the way they do business, no Tesco syndrome at all, but they like things done a certain way which is fair enough. We are supplying a lot of product though, this isn't a small contract.

Did they ever give an actual reason? Or just say 'we only deal with Ltd companies' type thing?

I've dealt with Travis Perkins for years, FTSE100. And my biggest client is Google, in some sense. Perhaps not taking the money off them that you take off your one mind. But nobody's ever questioned whether I'm Ltd or what. Never had a credit check done either. Yet that's meant to happen quite a bit I think.

 

[Concrete guy]

I'd not questioned it to be honest, it was just explained it made things a lot smoother. I think much of this is to do with background checks as companies by their very nature are required to declare publicly a lot more information than sole traders.

 

[Dan]

That'd make sense.

And most credits are against the directors these days anyway, not the Ltd company as a whole. So I guess they can see who's giving a Ltd company what credit etc. But sole trader they'd be in the dark with that sort of jazz I guess.