We are at in depth due diligence of an industrial distribution company . One of the question came up re: the continuity of top vendor relationship. The current owners mentioned to the vendors that there is a ownership change coming. The vendors in turn mentioned they don't see any issue continuing the relationships except that the new entity has to apply for credit to the vendors. The credit application is looking for credit history and bank/trade references , which will be pretty much none for the new entity I've formed. Do we see this situation during asset sale of an existing business and how does the new entity work around this situation ? Is it that the vendors will only provide cash on delivery to the new entity until the new entity has built up some credit history both with the lending bank and the vendor ? Do you apply for the credit to the vendors way before closing ?(but then there is no history to check..) .