They are looking for data such as the length of time the account has been open. These are commonly suppliers or vendors.īanks will check these kinds of references. That is, the companies that you list as trade references often will not be reporting any payment experiences on your business credit report. This is with the exception of companies which use D&B’s Credit Builder. They are often from companies which do not usually report credit except in negative circumstances. Trade references are important because they give banks a clearer picture of how you manage your business finances.Ĭommercial credit reports do not normally list them. Let’s Go Why Are Trade References Important? Improve your business credit history through tradeline reporting, know your borrowing power from your credit details, and access the best funding – only at Nav. Many business credit applications ask for three such references. Excellent trade references are an important asset which successful companies should place a high value on. After all, building business credit is about more than just objective information.Ĭompanies and banks which loan money and extend credit want to be sure their customers can pay their debts on time and in full. With trade references on a credit application, there is a lot more detail. They are one of the only parts of a credit file that isn’t just numbers or court filings and are often presented in conjunction with a formal credit report from a known business credit rating agency, like Experian or Dun & Bradstreet.Ī trade reference means there is more to go on than numbers. They can truly help your business and many business owners know absolutely nothing about them.Ī trade reference is subjective information used to help lenders and business to business suppliers make decisions about whether to extend credit to an applicant or provide a loan. Trade references are like financial references for your business. Have you ever heard of trade references? What is a Trade Reference? You can get this information added to your business credit reports. Have you ever checked your business credit report and hoped creditors and lenders could have more information on your business? It could be subjective information, like if there is a seasonal pattern to your payment habits, or how long you’ve been doing business with a supplier.
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