Caribbean Trade Reference Center
There are many things you can do to build business credit fast, without paying for expensive subscriptions from credit bureaus or monitoring services. This is exacly what we teach in our Business Credit Workshop. It is a normal practice to ask for three trade references on a Credit Application.
Trade credit is used to give tradespeople immediate access to tools and materials on credit. Before you can get trade credit, you agree the credit limit and number of days until repayment must be made. Repayment terms vary, but on average repayment is usually required within 30 days.
Practically speaking, this means that practitioners not only have the flexibility to run this software wherever and whenever they wish, but they can also modify and extend the software as they see fit. We hope that having this collection of tools on a common, open source platform will facilitate discussion and collaboration among practitioners. The references that you gave to your current references when you opened an account. COPYRIGHT The copyright in any Data provided to a Client is and remains the property of the Company. The Data may not be copied, distributed, sold, reproduced, licensed or dealt with in whole or in part without the prior written consent of the Company. All use of the Company’s Data shall be accredited with the Company’s moral rights.
Your referees will then be sent a written reference request asking questions about their experience working with you. Struggling companies that wish to maintain a prime credit rating may become adept at prioritizing their debt and supplier payments. Using cash flow to pay bank loans and larger suppliers while putting off smaller businesses can create a misleading credit profile. By checking large and small references alike, companies eager for new business can save themselves the time and headaches that go into collecting money from recalcitrant clients.
However, it does take a long time to build up good trade references. Just like any healthy relationship, it takes a while to lay down the foundation of trust. Business relationships between a supplier and buyer typically must exist for some time before the former is willing to offer the latter longer payment terms. Moreover, enough time must have lapsed to demonstrate a longstanding payment history between the two parties and showcase your business’s creditworthiness.
It is a good practice to check references even at a time when an established customer starts to show signs of financial stress or changes their buying or payment pattern. A periodic check on trade references is recommended on customers those contribute to the cash flow of your organization. Moreover it also shows that you care about your exposure and that you monitor it regularly. When applying for credit with a supplier, the application form will usually ask for the name and contact details of your trade references. Simply pass these on and the supplier will request the reference from them.