Trade account

A trade account is a customer account that a supplier opens for a business buyer. It may provide access to wholesale prices, order history and credit terms, but opening an account does not automatically mean credit has been approved.

A supplier may require business identification, contact details and evidence that the applicant is buying for commercial purposes. An account can operate on payment in advance, payment at checkout or credit. Credit approval may introduce a spending limit and payment deadline, which are separate from access to trade pricing.

For example, a shop may register for a trade account to view a supplier's catalogue but still pay for each order before dispatch. If it later receives 30-day net terms, goods can be invoiced for later payment within the agreed limit. A trade reference may help the supplier assess that request.