Exemplary trade references are a prime asset that successful companies value as much as profits. Start with your existing suppliers and vendors to find out whether they provide credit. If they do, be sure to monitor your business credit reports to see which ones report payment history.
A Trade Reference is a report detailing the payment history between a business customer and its supplier or vendor. Trade references may be supplied verbally, in the form of a trade reference letter, or by reporting payment history to commercial credit reporting agencies such as Dun & Bradstreet, Experian or Equifax. Excellent trade references contribute to good business credit scores.
Such a formal credit report would come from a known business credit-rating agency. These are the best-known CRAs, such as Experian or Dun & Bradstreet. Dun & Bradstreet (D&B) is similar to a credit bureau for businesses. When an entity such as a bank, vendor, customer, or insurance company wants to check a business’ credit, D&B is a great way to do it. Each business that is registered with D&B gets a DUNS Number, a unique identifying number for a business used only by D&B.
This practice bums me out about recruiters farming references for business development opportunities. All jobseekers should hold off on providing references until they are well into the interviewing process. If references are required to start the process provide outdated numbers and names. Any misrepresentation or fraudulent information provided will be the basis for default under this agreement. By signing this form, I expressly authorize to contact the above references to determine credit worthiness. Here is where a business trade reference can really help your business.
However, just because a business has a trade reference to offer, doesn’t necessarily mean it’s a good one. Here’s how to spot the difference between a good and bad trade reference. Once you have at least three trade references with D&B, your PAYDEX score can be calculated.
Consultants, decorators, attorneys and accountants generally constitute secondary trade references, as do cleaning, computer repair and collection services. Other secondary references might involve those involved in your business car leases, post office boxes or furniture rental. 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.
As a result, you can download the signed trade reference form to your device or share it with other parties involved with a link or by email. Due to its multi-platform nature, signNow works on any device and any operating system. Use our eSignature tool and leave behind the old times with efficiency, security and affordability. The sigNow extension was developed to help busy people like you to reduce the burden of putting your signature on papers. Start putting your signature on trade reference form with our tool and join the numerous happy users who’ve already experienced the advantages of in-mail signing.