Trade reference

A trade reference is information from a supplier about a business customer's payment history and trading relationship. Suppliers may request references when assessing a credit application, alongside other checks on the customer's ability to pay.

A reference commonly describes how long the customer has traded, the usual order or account value, agreed credit terms and whether invoices are paid on time. It is one source of evidence, not a guarantee of future payment. A long relationship with a small supplier may say little about a much larger proposed credit exposure.

For example, a wholesaler considering a new customer's request for 30-day payment may contact two existing suppliers for references. Their responses can support the credit assessment alongside financial and business checks. The reference does not transfer responsibility for the customer's debts to the supplier providing it.