Trade Reference Definition & Meaning

There are seven data points that go along with each submission to D&B. In addition to building trust, it’s critical always to pay your supplier and vendor bills on time. In some cases, you might not have as many interactions with a vendor. Transactions may take place mostly online, which doesn’t really leave any room for personal interaction.

By signing this form, I expressly authorize to contact the above references to determine credit worthiness. Trade references are normally obtained on your credit application and checked at the time of setting up of a new customer/applicant. If you email or phone it most likely will get lost in translation or end up sitting in someone’s email and forgotten. Print out a form like the sample mentioned above in this article, and address it to either A/R, Credit dept., or Financial dept. It’s much easier for someone to send a fax than to call or email. Time line is generally three days, then you send a second request , if still nothing send a “third and final request” .

The $8,000 is reported for this data point in the submission. Trade references are generally creditors and suppliers within the industry, as opposed to utilities such as phone and electric service. Put your payment due dates on your calendar and try to pay a few days early so you allow time for the payment to be processed. DisclaimerAll content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only.

As good practice, it is important to stay updated on your business credit score. With our free-to-use Tillful app, you will have unfettered access to your business credit score updated in real time. By knowing what’s behind the number, you are able to focus your efforts where it counts and take the immediate steps to improve your business credit score and get the credit you need to grow your business. Now, you can send a copy of your trade reference to Dun & Bradstreet here. So, it will become part of your credit report, available to anyone who pulls your report. You can also add trade references to a CreditSafe profile.

Also, find out if the reference gives any special discounts like 2%10 Net 30. If so, then does the applicant avail of such discounts or abuses it by taking the discount and still paying late. This will trend the payment habit of the applicant and give you a rough aging analysis against the terms as discussed next. This amount would especially be of significance and concern if during the peak season of the applicant the amount current were relatively low.