What should I ask about a deck builder’s lumber supplier terms?

Ask to see the supplier accounts, not just a description of them. Look at how orders have moved through the busy season, whether the company pays on time and whether any balance is overdue. A deck builder that is always stretching its supplier credit may be carrying a quiet cash problem that the financial statements show only as a payables line.

Next, find out whether the terms belong to the company or to the seller personally. Some suppliers extend credit because they know the owner, and they may reset the account when the owner changes. Ask the seller to introduce you to the main supplier before closing, and ask the supplier directly what would change.

Then test the weak points. Is there one yard that supplies nearly everything? Does the company lock in material costs on quoted jobs, or does it absorb price swings? Are deliveries ever late enough to push back a build? Ask for a couple of alternative suppliers the crew already trusts, and see how much the work would suffer if you had to use them. Keep notes of every answer, and ask for confirmation of anything important in writing so it can be checked again later.

Key takeaways

• Review the actual supplier accounts, including any overdue balances, rather than a verbal summary.
• Find out whether credit terms belong to the company or to the current owner personally.
• Meet the main supplier before closing and ask what would change under new ownership.