Buying guide

How to open a wholesale trade account. 

What suppliers ask for, what they check, and how to get approved first time.

In short

To open a wholesale trade account in the UK you need to be a business buying stock to sell on. Suppliers typically ask for your business name and type, a company number if you have one, a trading address, a contact, and an idea of what you want to buy and how much. New businesses and sole traders can usually apply, and VAT registration is often not required.

By Shearn Group LTD · Updated

Who can open a trade account

Trade accounts are for businesses. That includes limited companies, partnerships and sole traders, as long as the stock is being bought to sell on and not for personal use.

You do not always have to be trading already. Many wholesalers accept new businesses, though they may ask for payment before dispatch until a trading history is established.

What you will be asked for

  • Business name and any trading name.
  • Business type: limited company, partnership or sole trader.
  • Company registration number, if you have one.
  • VAT number, if you are registered.
  • Trading address and delivery address.
  • A named contact with phone and email.
  • The product categories you want to buy and a rough monthly spend.

Do you need to be VAT registered?

Not necessarily. VAT registration depends on your turnover, not on whether you buy wholesale. Many wholesalers open accounts for businesses that are not VAT registered. You will still pay VAT on your purchases; you simply cannot reclaim it until you are registered.

How payment usually works

New accounts normally pay before the goods are dispatched, by bank transfer against a pro-forma invoice. Credit terms, where a supplier offers them, generally come later and depend on trading history.

How to get approved quickly

  • Apply in the exact name your business trades under.
  • Give a real trading address, not only a registered office.
  • Be realistic about spend. Suppliers use it to decide who looks after your account, not to catch you out.
  • Check the minimum order before you apply, so you know you can reach it.

Where Shearn Group fits

Shearn Group accepts trade account applications online from limited companies and sole traders, including new businesses. VAT registration is not required. The minimum order is £5,000 + VAT, payment is by bank transfer, and every application is answered within 2–3 working days.

FAQ

Quick answers.

What do I need to open a wholesale account?

Your business name and type, a company number if you have one, a trading address, a contact name with phone and email, and an idea of the categories you want to buy and your likely spend. A VAT number is needed only if you are registered.

Can a sole trader open a wholesale account?

Yes. Most UK wholesalers open trade accounts for sole traders as well as limited companies, provided the stock is being bought to sell on.

Can I buy wholesale without a VAT number?

Often, yes. Many wholesalers do not require VAT registration. You will pay VAT on what you buy, and you can only reclaim it once your business is VAT registered.

How long does a trade account application take?

It depends on the supplier, from the same day to a week or more. Shearn Group replies to every application within 2–3 working days.

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