How do I set up new supplier accounts after buying a business?

A supplier relationship is not just a phone number and a delivery schedule — it is a credit account, built on a payment history that belongs to a specific legal entity. Buyers who assume they can simply keep using the seller’s supplier accounts are often surprised at how quickly that assumption runs into trouble.

Why the account usually cannot just carry over

In an asset purchase, the buyer is a new legal entity with no payment history of its own, and most supplier agreements either require consent to assign the account or block assignment outright through an anti-assignment clause. A share purchase is different — the corporation itself does not change, so its existing supplier accounts and credit terms generally continue without needing to be reopened. This mirrors what happens with the buyer’s own CRA program accounts in an asset sale: a fresh legal identity means fresh accounts everywhere, not just at the bank.

What to expect when reapplying

• A fresh credit application, often including references and financial information about the buyer’s new entity
• A return to less favourable terms, such as cash on delivery, until a payment track record is established
• A gap between closing and full account setup that needs to be bridged with cash flow, not assumed away
• Different account numbers and login credentials for ordering and billing systems

Start the process before closing, not after

Where the deal allows it, beginning supplier applications before closing, with the seller’s cooperation, shortens the gap between taking over and having working accounts in place. A seller who is willing to personally introduce the buyer to key suppliers, and vouch for the transition, tends to get a warmer reception than a buyer showing up unannounced as a stranger asking for credit.

Watch the anti-assignment clauses specifically

Supplier contracts with meaningful volume or pricing commitments are worth reviewing individually for anti-assignment language before closing, since some suppliers renegotiate pricing entirely once they realize the account is changing hands. Knowing which relationships require active supplier consent, and which simply continue, should shape the transition plan rather than being discovered account by account after the fact.