Even small corporations leave a financial trail behind them as they conduct business. Annual reports provide public records, and customers and suppliers all provide information to organizations such as Dun and Bradstreet to assemble a picture of your company, or Paydex score, for potential creditors. Since lenders require -- and check -- trade references, it benefits you to report acceptable references with which you are in good standing.
D&B maintains public credit ratings available to potential lenders, suppliers and clients, so executive officers assemble their trade references carefully. Lenders typically require at least three trade references with no adverse payment records or public records, such as lawsuits, within the preceding 12 months. Primary references -- suppliers upon which your business depends -- carry more weight on credit applications than secondary references. Incomplete transactions, international corporations, banking and periodic exchanges such as utility, insurance and financial services do not typically constitute acceptable references.
Trade involves the exchange of goods or services for money or other items of value. A trade reference typically refers to such exchanges between businesses. Primary trade references include payment for parts, supplies and materials, but they might also involve advertising, printing, graphic design, software development and direct mail service. Consultants, decorators, attorneys and accountants generally constitute secondary trade references, as do cleaning, computer repair and collection services. Other secondary references might involve those involved in your business car leases, post office boxes or furniture rental.
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