Credit from a wholesaler or distributor is how most installers fund the gap between buying equipment and getting paid. STCs are a big part of that gap, so the two questions go together.
What distributors look at
Expect a credit application covering ABN and structure, years trading, accreditation, trade references and bank details. Newer businesses are often on cash on order or a small limit, then step up after a clean payment record. Directors may need to sign a personal guarantee. Keep your accounts tidy: late payments to one distributor travel fast through a small industry.
How to compare distributors
| Factor | Why it matters |
|---|---|
| Stock reliability | A delayed inverter delays the install, the claim and your cash |
| Product coverage | Must be CEC-approved for STC eligibility; see approved products |
| Payment terms | 7, 14 or 30 days changes your working capital |
| Warranty support | Who handles faulty units and how fast |
| Delivery and branches | Hours lost chasing stock cost more than a small saving |
| Training and tech support | Useful for new battery and VPP products |
Ask for the same quote from two or three distributors and note what each includes. Check that anything you buy is on the current approved lists before you quote the STC discount.
The cash flow loop
You buy equipment, install, then wait for STC payment. If your trader pays in 20 business days and your distributor wants payment in 14, you carry the gap. Shortening the STC leg is the simplest way to cut how much credit you need. See 20-day versus 1-day payment terms and installer cash flow and STCs.
Building a credit record from scratch
Start with a small account, pay on the due date every time and ask for a limit review after six months. Provide updated financials or trade references when you ask. Some distributors offer early-payment discounts that beat the cost of a short wait on STC money, so check the maths. If one supplier holds most of your volume, ask for rebates tied to turnover rather than a deeper discount on a single product line.
Keep a one-page scorecard for each distributor covering on-time delivery, damaged or wrong items, how fast warranty claims are resolved and how often prices change between quote and order. After a quarter you will see which supplier actually saves you time. That evidence is also useful when you negotiate terms or ask for a higher credit limit.
What this means for installers
Treat distributor and trader terms as one cash cycle. Energy Merchants settles within 24 hours for established partners (first claim 48 to 72 hours) at a daily published rate, which helps you pay accounts on time; see pricing and how it works. More in the installer business hub and how to sell STCs as an installer.