A new vendor or supplier may ask you to bring trade reference when you wish to make a credit transaction. It is a document prepared for you by someone with whom you have made some business transactions. Trade reference is used almost in all fields of life to verify creditworthiness of a firm or individual person. Core purpose of the trade reference is to attest a company’s or an individual person’s ability to meet with obligations or to pay credit in timely manner. This document is widely used in companies and business organizations when they want to carry out business activities with new customers.
A well written trade reference can help a business a lot to get credit limit extended. These are generally used by business to business suppliers. As a supplier or vendor, it will be a good practice for you to ask your customers for trade reference when they start showing financial stress at the time of payments. It is a best way to make sure that the customer will pay full amount on time regarding recent credit transactions. You can make use of trade reference template to write a perfect trade reference letter for someone.
Money lenders and suppliers may ask you to provide trade reference in order to carry out a transaction. However, trade reference could be made via telephone or in writing. Most of suppliers and lenders accept written trade references so make sure you have a proper format or layout to create professional looking and error free trade reference. Properly written trade reference can help your company a lot to stable things for moving ahead positively. This webpage has free trade reference templates for you that can be used for all types of business organizations and lending institutes after making changes.