We are independent & ad-supported. We may earn a commission for purchases made through our links.

Advertiser Disclosure

Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.

How We Make Money

We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently from our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.

What Is a Vendor Application?

By Kathy Heydasch
Updated May 16, 2024
Our promise to you
SmartCapitalMind is dedicated to creating trustworthy, high-quality content that always prioritizes transparency, integrity, and inclusivity above all else. Our ensure that our content creation and review process includes rigorous fact-checking, evidence-based, and continual updates to ensure accuracy and reliability.

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

Editorial Standards

At SmartCapitalMind, we are committed to creating content that you can trust. Our editorial process is designed to ensure that every piece of content we publish is accurate, reliable, and informative.

Our team of experienced writers and editors follows a strict set of guidelines to ensure the highest quality content. We conduct thorough research, fact-check all information, and rely on credible sources to back up our claims. Our content is reviewed by subject matter experts to ensure accuracy and clarity.

We believe in transparency and maintain editorial independence from our advertisers. Our team does not receive direct compensation from advertisers, allowing us to create unbiased content that prioritizes your interests.

Before a vendor sells a good or service to a customer, they may require a vendor application. This form might serve any number of purposes for the vendor, but the foremost among them would be determining whether or not the customer is an eligible distributor for their product and/or determining if credit terms should be granted to the customer. Most retail sales do not require a vendor application, so this article focuses on wholesale sales.

Most manufacturers of any product rely on a network of distributors to get their products to market. Chances are those distributors were required to complete a vendor application before they could become an eligible distributor. Depending on the needs of the manufacturer of the product, the vendor application could ask any number of questions.

If the goal of the vendor application is to find out if a potential distributor is credit-worthy, the application may ask for banking information. This would include the bank’s account number, although the amount of information that can be released from a bank is slim to none. By contrast, current vendors may offer an abundance of information regarding a vendor’s account. So a vendor application might ask for two or more credit references. These would be companies from whom the potential distributor is already buying, and so they could verify the credit-worthiness of the potential distributor. High credit risks may require pre-payment up front and lower credit risks might be offered net 30 or net 60 day terms to pay the invoice, for example.

If the goal of the vendor application is to find out if a potential distributor is worthy of distributorship, the application may ask for a list of suppliers for whom the potential distributor is selling their products. This will give the vendor some idea of the types of products the potential distributor is currently selling and whether or not the new products would be a good fit. Some vendors will not allow distributors to sell competing products, so this could also nullify a vendor application.

In other cases, a vendor application could refer to an application requested by a customer for the vendor to complete. This might be to find out if a vendor is stable financially before purchasing from a company. Or it might be to find out if a vendor is certified as a small business, minority-owned or woman owned. This is usually for government contracts, where a certain percentage of business must be granted to companies providing products from woman-owned, minority-owned or small businesses.

SmartCapitalMind is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.

Discussion Comments

SmartCapitalMind, in your inbox

Our latest articles, guides, and more, delivered daily.

SmartCapitalMind, in your inbox

Our latest articles, guides, and more, delivered daily.