Trade References: Learn Everything You Need to Know [+Templates]

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Trade References

If you apply for a line of credit for your business, there’s a chance that you’ll need to share a trade reference with the lender. Or, if you’re a vendor, you might be asked permission to be listed as a trade reference for one of your business customers. Even more, if you extend a line of credit to one of your business customers, you may want to ask them to provide you with a trade reference. So, what are trade references and what all do they entail? 

If you’re clueless on the subject or just need a bit more information, we’re here to help. Let’s explore the fundamentals of trade references so you can gain a clear picture. Here’s what we’ll cover.  

Now, let’s get to it!

What are Trade References? 

Trade references meaning

A trade reference or credit reference is a professional testimonial from a vendor or supplier on behalf of a business customer to vouch for that business’s reliability. In most cases, trade references are required or recommended on business financing applications as a form of documentation of the company’s ability to pay debts on-time, as agreed.  A positive trade reference can make all the difference in a successful financing application. 

And, a trade reference request is a solicitation for a trade reference from a vendor. For example, a supplier that has received on-time payments from a business customer each month might be asked by that customer to provide a trade reference that outlines the company’s payment history. The business customer could then use the reference on an application for a term loan, line of credit, or credit card. 

A trade reference is comprised of seven parts: 

  1. Business Contact Information – Legal business names, addresses, and phone numbers for the vendor and the client/customer involved. 
  2. Reporting date – AKA “as of date,” the reporting date is the date that the reference is collected.  
  3. Manner of payment – Details whether payment was made via cash, check, debit, or credit card. 
  4. Rolling, 12-month high credit – Indicates the highest amount of credit used in the past 12 months when applicable. 
  5. Current total amount owing – Denotes the amount owed to the vendor ass of the reporting date. 
  6. Current total past due – Identifies when an amount owed is unpaid past the agreed-upon date of payment. 
  7. Selling terms – Outlines the payment agreement including payment amount, due date, and net terms. 
  8. Date of last sale – Reveals the last time a service was rendered or order placed. 

Business credit bureaus want to see everything above 

What is an Example of a Trade Reference? 

You might think of companies that you pay monthly utilities to as decent references for your creditworthiness. However, when it comes to business financing, you’ll get more klout from vendors and creditors within your industry. For example, if there is a company that supplies your business with funding, operating materials, or services, they might make a good trade reference — even better if they allow you to “buy now and pay later.” 

You can get trade references from any company that allows your business to pay for supplies or services at some point after delivery. By doing busines with these vendors and paying as agreed, you can collect references that help you establish your credit. 

Some net 30 vendors, suppliers that offer 30-day net payment terms on business orders regularly report payments to business credit bureaus under certain conditions. We’ve reviewed some of them, including how to get the most out of their offers: Summa Office SuppliesCrown Office SuppliesHome Depot Business AccountAmazon Corporate Credit Line

How are Trade References Used? 

On a credit application, a trade reference can help showcase a borrower’s reliability when no business credit score has been established. In this case, a trade reference can be attached to the original application. 

Another way to use trade references is to manually request them from vendors and report to D&B and other business credit bureaus. This helps establish a high business credit score, accessible by any lender who looks at your profile. 

How Can You Report Trade References to Dun and Bradstreet? 

Dun and Bradstreet (D&B) is the leading business credit bureau. To build your business credit score, you will need to first request a DUNS number. After your business credit profile has been established (or claimed), you can work to build credit and increase your business credit score. 

One step you can take to improve your score is to manually submit trade reference letters from vendors that you do business with. There are some companies that you can not manually submit trade reference letters from: 

  • Companies that already report to D&B (most major lenders and some 30-day net vendors)
  • Companies without a D&B credit profile
  • Companies that have been prohibited by D&B for untrustworthy activity
  • Companies outside the US
  • Companies with legal ties to your business
  • Companies with internal rules against D&B reporting 

Before you manually submit a trade reference, you will need to send a trade reference request to your vendor. Include a trade reference template that asks for all of the required information for quicker reciept. 

After you have a reference to submit, you will need to upgrade your D&B account to a paid CreditBuilder™ account. With this account level access, you can submit trade reference letters online or through your account concierge. 

Note that a paid D&B account is NOT necessary to build business credit. 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. 

Trade Reference Templates 

When you need to request a trade reference from a vendor, you’ll need a trade reference request letter and a trade reference template that the vendor can fill out. Feel free to alter these for your needs: 

Final Thoughts

A trade reference provides potential lenders and credit bureaus with more information than they are able to find via algorithms and search engines. These references can be invaluable for a business that is just starting its credit-building journey. If you want to learn how to get $100K in business credit in 30 days, join Business Credit Workshop today. 

Summa Office Supplies: Should You Leverage Net 30 Terms for Your Business Purchases?

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Recently, we published a review of Crown Office Supplies as an early step on the business credit building journey. We discussed why you should be interested in the brand’s net 30 offer and outlined what to expect once you are approved. Now, we’re going to look at one of Crown’s top competitors in the business place products arena: Summa Office Supplies. 

The aim here is to answer the most pertinent questions about this merchant so that you can decide whether to utilize their net 30 terms to establish foundational business trade lines of credit. 

Here’s what’s in store: 

Now, let’s gather more of the puzzle pieces so you can start to see a complete picture of what your Summa experience might be like. 

First, the Summa Office Supplies Catalog in a Nutshell

Nearly every business needs office supplies, which makes Summa a natural option for online shopping. The vendor advertises eight product categories to shop: 

  1. Pens, Pencils, and Markers
  2. Filing Folders
  3. Envelopes
  4. Markers
  5. Tape and Adhesive
  6. Labels
  7. Legal Pads
  8. Correction Supplies

With Summa Office Supplies, you’ll find the major brands you should expect like Bic, Scotch, Sharpie, and more. While seemingly ordinary as far as stationery and other workplace supply retail is concerned, there is a catch. 

The first drawback to this retailer is that you will need to register a business account to see the catalog. You probably want to determine whether you’ll find everything you need before you go through the trouble (although most Summa Office Supplies reviews report that registration is a breeze). There are two tiers for Summa accounts, each with varying catalog sizes. 

Tier one business shoppers will have access to a smaller product selection while those in tier two are able to access the entire catalog. Some business owners have not been satisfied with the first-tier catalog. Others have been able to purchase useful digital products like anti-virus software, MS Office, and educational materials. 

Next, Summa Office Supplies Net 30 Terms

So far, we’ve mentioned Crown and Summa here. These merchants are legitimate net 30 vendors who report payment history to major business credit bureaus. When you purchase under these terms and pay your account(s) in full and on-time, your positive behavior will be reported. And, this will increase the chance for you to obtain higher revolving credit lines for your company in the future. 

Net 30 accounts that are reported to Dun & Bradstreet (D&B) and other business credit bureaus have a few things in common:

  • They offer a “buy now and pay later” option for businesses to get the supplies and equipment they need to operate. 
  • All payments are due in full within 30 days after your order. Some vendors offer net 45 and net 55 accounts wherein full payments are due within 45 and 55 days after an order respectively. 
  • A company’s payment behavior, including on-time, late, and delinquent, will impact a legal entity’s business credit score(s). 
  • Typically, there is a minimum purchase amount to report. 

And, each vendor has terms that are a bit different than the others. In the case of Summa, the minimum qualification terms and benefits vary from competitor offers and between the two internal tiers. 

Net 30 Office Supply Stores Online

For a brief comparison of comparable offers from a couple of other vendors, read this office supplier net 30 competitor analysis. 

For both tiers, Summa Office Supplies’ accounts require the following: 

  • Business credit union or bank checking account
  • Legal business entity and any required business licenses *in good standing*
  • EIN number from the Internal Revenue Service 
  • DUNS number from D&B
  • Identical business address on all documents 
  • $75 minimum purchase for reporting to business credit bureau(s)

And, the usual starting limit for Summa’s net 30 accounts is $2,000. You can potentially qualify for enough credit to buy as many post-it notes and boxes of manilla envelopes as your heart desires while laying the foundation for the ideal business credit score.  

Remember that not paying as agreed on purchases will have a negative impact on your business credit score. As far as the business credit bureaus are concerned, on-time payments signal positive and responsible behavior for this type of account, no matter what price you pay. 

Next, find out what’s not equal within each tier. 

1. Tier-One Minimum Qualification Terms and Summary

The first net 30 tier offer from Summa is the easiest to qualify for, hence it is customarily a fit for newly-established businesses. No personal guarantee is required. This means that your personal credit will not affect your ability to obtain a line of business credit and your account will not be reported on your personal credit profile. 

As stated previously, the product offer for Summa’s tier-one accounts is limited and made up primarily of digital products and software. And, all payments for purchases above the $75 minimum will be reported to Equifax Business. 

After making on-time payments for a brief time, companies are often able to graduate from tier-one to tier-two. So, if you are new to the game and your options limited to the lower rank, don’t think of this as a permanent fail — this type of account can be the perfect stepping stone for early-stage business credit building in various situations.  

2. Tier-Two Minimum Qualification Terms and Summary

Now, Summa’s second net 30 tier has slightly more stringent minimum qualification requirements and is typically a better fit for established companies. And, for an account at this tier, a personal guarantee (PG) may be required by the vendor. 

In this case, the person listed on the application will be personally liable for any debts incurred should the financial obligation not be met on-time. Furthermore, tier-two net 30 accounts from Summa might appear on applicants’ personal credit reports. 

But, here’s the best part: All payments (and any missed payments) toward purchases greater than $75 on this type of account will be reported to D&B. Since this is the credit bureau that most business lenders turn to for information about a company’s creditworthiness, an account at this level will have an optimal impact on your PAYDEX score (credit grading system used by D&B). 

Who does Summa Office Supplies Report to?

Now, 4 Steps You Can Take Right Away

Summa Office Supplies is a leading net 30 vendor that you can take full advantage of for the purpose of boosting your business’ credit score. Despite the general consensus that this particular merchant’s product offering could afford to be built out, this is definitely a valuable offer. On-time payments made on orders with prices as low as $75 can bring you a step farther along the path to a perfect business credit score. 

Now that you know more about the net 30 account options that Summa has to offer, here are steps you can take to raise your business credit score starting right now: 

  1. Register an account with Summa Office Supplies. Be certain that your business address is accurate and that it is printed exactly the same across all of your documents (including all licenses and business profiles). 
  2. Determine which of Summa’s net 30 tiers your business is most likely to qualify for and decide whether this vendor is appropriate for you. You will have access to more related information following registration than you can find on the website when browsing as a guest. 
  3. Either apply for and accept the net 30 terms that Summa offers… …OR… ..Select a trade line that is better suited to your business needs. If you choose the latter, be certain that the vendor you pick reports payments to D&B and that you are informed about any terms and conditions that might stand in the way of reporting. 
  4. Discover how you can get $100K in revolving business credit in as little as 30 days and gain immediate access to member-exclusive content (including a comprehensive list of net 30 vendors that report on-time payments to D&B) by enrolling in Business Credit Workshop.

Is Dell Business Credit Worth Your Time?

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Is Dell Business Credit Worth Your Time?

When you’re a Dell-lover looking to build your credit profile and in need of a new computer, in-house financing is a natural place to turn. You can get upfront funding for your new equipment and potentially boost your scores. But, is the program worth your time? Read this Dell business credit review, and answer that question yourself. 

First of all, What is Dell Business Credit? 

Dell business credit is one of three business financing packages offered by Dell to fund the purchase of its PCs, electronics, and accessories. The business credit program is controlled by WebBank, who also partners with companies like Avant, Lending Club, Fingerhut, and PayPal to offer financial services to these brands’ existing customers.   

Dell Business Credit Offers Promotional Pricing on Specific Equipment

Financing can only be used to purchase directly through Dell and the brand offers promotions on specific equipment. 90-day, 0% interest is a popular example. 

The three financing options offered by Dell are: 

  • PC as a service
  • Dell business credit
  • Lease options

In addition, Dell offers custom solutions for enterprise solutions for medium and large businesses. So, larger companies can reach out with their needs to come up with packages under the pretense of greater savings on bigger orders. 

At first glance, the program looks fine. Yet, Dell’s business financing reviews online seem to deliver more than the usual amount of complaints. So, I decided to dig into the program and share unbiased facts. After reading through, you should be able to decide if the program is worth your time. 

Next, How Difficult is it to Get Dell Business Credit and Will You Qualify? 

Borrowers who apply for Dell business credit are often surprised by the approval process and credit amount. For example, one business applicant who made $62K in purchases from Dell the previous month was offered a $5K tradeline (MyFico). The amount of funding led this user to the conclusion that WebBank, the actual lender, doesn’t factor customer metrics within the Dell company into its decision. 

While this seems a bit wonky and impersonal, Dell did allegedly finance another customer for the same $5K business credit with no social security number and after locking their reports (MyFico). This possibility is appealing because it means that you could potentially qualify for a tradeline without sharing your personal credit report and conceivably start building business credit.

So, if WebBank will qualify an applicant for $5K in credit with no credit history, how easy is it to get a Dell business credit card? 

According to WallettHub, WebBank’s cards, including the Dell Preferred Account (which is not the same as the business credit card) are subject to approval with personal credit scores of 640 and up. So, while all situations are different, it’s a fair assumption to make that it is pretty easy to qualify. 

And, What Business Credit Report Does Dell Pull? 

If you have a fair business credit history with one bureau and bad credit on another, you need to make sure your lender will look at the report with the more favorable score. So, which report will Dell/WebBank peek in at when qualifying you for approval? According to multiple borrowers, you’ll see a hard pull on your Experian report when you apply for a Dell business account. 

Then, Why all the Poor Reviews? 

Let’s take a look at the common complaints about this card from existing borrowers. 

  • High interest
  • Poor customer service
  • High interest
  • High interest
  • Lack of payment technology
  • High interest

Many of Dell’s borrowers complain about the fact that they still owe the full amount of their equipment after making payments, sometimes for years. And, they express that there was no explanation that if their account wasn’t paid in full before the promotional no-interest period, that they would be charged the full interest amount. 

Yes, the above is frustrating, but these payment conditions were in the terms and conditions laid out by Dell and WebBank. It’s just that the borrowers didn’t see or understand them. 

You should always expect to pay interest on purchases made during a promotional 0% interest financing period if your balance is not paid in full before the end of the period. 

So, is Dell Business Credit Worth Your Time? 

If you need Dell equipment, should you go straight to the source for funding? — This is the wrong question. Instead, ask yourself the following: 

  • What are Dell’s current business credit promotions? 
  • If I leverage these promotions, can I save money on the equipment I need (the promotions often offer 15% price discounts on products)? 
  • If I leverage these promotions, will I be able to pay off my card within the promotional period to prevent future interest spikes? 

If you need Dell equipment and you can afford to pay off your purchase within 90-days, there’s no reason not to take advantage of the financial services. In fact, you could see a bump in your credit scores for on-time payments. 

Related Answers

Does Dell have financing?

Yes, Dell offers several consumer and business financing solutions through WebBank for the purchase of its equipment and accessories. 

What credit score is needed for Dell financing?

According to WalletHub, WebBank, who controls Dell’s financing options, qualifies borrowers with credit scores of 640+

What business credit report does Dell pull?

When applying for Dell business credit, your Experian report will be pulled. 

Does Dell finance bad credit?

According to many borrowers, Dell credit is fairly easy to qualify for, but typically, lenders do not finance anyone with bad credit. 

Can I buy a laptop and pay monthly?

Yes! You can leverage financing directly through most laptop manufacturers as tradelines or use alternative funding options to make monthly payments on a new laptop. 

Can I lease a laptop?

Yes! Most major laptop manufacturers have lease options for businesses and consumers. Dell’s progressive leasing is one example. 

Final Thoughts

Dell business credit offers no major rewards — this type of financing doesn’t allow you to generate points, airline miles, or cash awards. But, for businesses early in the credit building journey, if leveraged properly, Dell’s in-house financing can be helpful. Learn how to make the most of your credit profile. Start by understanding how to use 30-day net vendors to boost your business credit score.

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