How to Check Trade References 

Trade references are a longstanding tool in business relationships, helping companies assess the financial reliability of their partners, suppliers, and customers. However, traditional trade references can often be time-consuming, hard to collect, and sometimes unreliable. That’s why leveraging a business credit report, which consolidates payment behavior data across a wide range of suppliers and vendors, is a smarter and more efficient way to evaluate creditworthiness. 

Checking trade references is an important step in understanding whether a business is financially reliable, but traditional trade references often fall short. They can be slow to respond—if they respond at all—which can stall critical decisions, like onboarding a new customer or supplier. 

There’s also the risk of getting an incomplete picture. A company might only share references from businesses they’ve paid on time, leaving out less favorable ones. This makes it harder to get a true sense of their payment behavior and financial reliability. 

That’s why using a business credit report is a smarter approach. Creditsafe collects payment data from a wide range of suppliers and vendors, giving you a clearer, more accurate view of a company’s overall payment habits. It’s a faster, more reliable way to assess risk and make confident decisions.  

To maintain a strong business credit profile, it’s crucial to ensure the accuracy of your trade references. Here’s how to do it effectively: 

• Review your business credit report: Creditsafe’s business credit reports consolidate trade data from multiple sources, providing a snapshot of your payment behavior.  

• Verify payment terms and history: Check whether the reported payment terms align with your agreements. For instance, if you operate on a net 30 basis but are reported as consistently late, this discrepancy needs to be resolved. 

• Contact suppliers if necessary: If you notice errors, reach out to suppliers to clarify what they’ve reported. Resolving these issues ensures your credit profile reflects your actual reliability. 

Proactively managing your trade references not only strengthens your credit profile but also helps you secure better terms with lenders and partners. 

When assessing a potential customer or supplier, relying on traditional trade references alone can be risky and inefficient. Instead, use a business credit report to gain a holistic view of their payment behavior. 

• Request a business credit report

 Creditsafe’s reports offer consolidated payment trends, trade references, and other financial data, providing a reliable basis for decision-making.  

• Analyze payment behavior

 Look at how frequently they pay on time, whether there are outstanding balances, and any patterns of delayed payments. 

• Cross-check key details

 If anything raises concerns—such as inconsistent payment patterns—contact their business partners for additional context. 

By focusing on comprehensive data rather than individual references, you reduce the risk of being misled and can make more informed decisions.  

Trade references provide a snapshot, but business credit reports consolidate payment behavior across multiple sources, making them a far more reliable tool. Here’s why: 

Broader perspective: A business credit report shows payment patterns across a wide array of suppliers and vendors, reducing the risk of selective bias. 

Efficiency: No need to chase down individual trade references or wait for responses. The data is ready when you need it. 

Accuracy: Payment data collected and verified by Creditsafe ensures you’re working with up-to-date, reliable information. 

For example, if you’re evaluating a potential supplier, a credit report showing consistent late payments across multiple partners would raise a red flag—information that might not surface with handpicked trade references. 

Traditional trade references can slow down processes and provide an incomplete view of payment behavior. By using a business credit report, you gain access to consolidated, reliable data that supports faster, more confident decisions. Whether you’re protecting your own credit profile or evaluating potential partners, investing in comprehensive payment behavior data is a crucial step toward long-term financial reliability.