Lina Chindamo, DIrector, Enterprise Accounts, Creditsafe
Trade references are a valuable tool for building your business credit profile. They provide insight into how well you manage payments with suppliers, service providers, and contractors, offering a snapshot of your financial reliability. But if you're new to the world of business credit, you might wonder: what do these trade references actually look like, and how do they work?
Need to check a trade reference?
Chapter 1
Common examples of trade references for business credit
Trade references are a key part of your business credit profile, but what exactly do they look like? Trade references come from a variety of sources, each of which can provide valuable insights into your payment history and reliability.
Chapter 1
Supplier trade references
One of the most common sources of trade references is your suppliers. When you purchase goods or raw materials from a supplier and pay on credit, your supplier can provide feedback about your payment habits. If you consistently pay your invoices within the agreed-upon terms, your supplier will likely give you a positive reference.
For example, let’s say your business purchases office supplies from a wholesaler. If you always pay your invoices within 30 days, that wholesaler can provide a positive trade reference, which will be included in your business credit report. This positive feedback can help you secure better payment terms with future suppliers, as it demonstrates your reliability.
That said, relying solely on trade references can pose challenges. Many businesses still request trade references as part of their credit policy, but references are often slow to respond—or fail to respond entirely. This delays the customer onboarding process, creating inefficiencies that can impact your operations.
At Creditsafe, we streamline this process by offering business credit reports that consolidate payment behavior data for you. This saves time and provides a broader, more accurate view of a company’s payment habits, so you can make informed decisions quickly. We invest heavily in collecting and combining trade data from suppliers and vendors. This allows you to see a company’s payment behavior across a wide range of trade relationships, minimizing the risk of being misled by selective references.
Chapter 1
Service provider trade references
Trade references aren’t limited to physical goods; they can also come from service providers. For example, if you hire a marketing agency or an IT services firm, and you pay them on a recurring basis, these service providers can offer a trade reference. Positive feedback from service providers can be just as valuable as feedback from suppliers, as it shows that you’re reliable when it comes to paying for ongoing services.
It’s also important to ensure that your suppliers and service providers are sharing data with credit bureaus. Payment behavior is a critical component of assessing creditworthiness, and without robust trade data, we may not have enough information to provide a full picture of your payment habits. Encouraging your trade partners to share data ensures that your payment reliability is accurately reflected in your business credit report.
Chapter 1
Contractor trade references
Contractors who work with your business on specific projects can also provide trade references. For instance, if you hire a construction firm to complete a renovation and you pay them according to the agreed-upon terms, that firm can offer a trade reference. Having a variety of references from both suppliers and contractors can give potential creditors a comprehensive view of your payment habits.
However, trade references from contractors and other partners can sometimes lack timeliness or reliability. A company could potentially game the system by selectively providing references from partners they always pay on time while withholding references from those they don’t.
This is where our business credit reports become invaluable. By consolidating data from a wide range of sources, we provide an unbiased view of payment behavior across all trade relationships.
Getting trade references can be tricky. Suppliers or partners might take a long time to respond—or not respond at all—which can slow things down when you need to prove your creditworthiness. That’s where business credit reports come in handy. They gather payment data from lots of sources to give a full, fair picture of how your business manages payments.
With credit reports, you don’t have to chase references. You get reliable, accurate information quickly, helping you make smarter decisions and show others that your business is trustworthy.
Need to check a trade reference?
About the Author
Lina Chindamo is currently Director, Enterprise Accounts at Creditsafe Canada, and a Certified Credit Professional (CCP) with over 25 years of experience in credit risk management. She has held senior leadership roles with leading companies in multiple industries in the Canadian market such as Sony Electronics, Maple Leaf Foods, and Mondelez Canada. Her experience as a credit professional along with her current role as Director, Enterprise Accounts who works closely with c-suite partners and credit teams across all industries makes her a well-rounded credit professional who is well respected in our industry.