It comes from a real trading partner
The author actually bought from or sold to the company, and can prove it with commercial documents.
Guide
A trade reference is a statement from a business that has traded with a company about how that company pays and performs. The question is whether you can believe it.
Traditionally you ask the company you are about to trade with for the names of two or three suppliers, then call them. The weakness is obvious: the company chooses its own referees. Friendly suppliers, related parties and even fabricated contacts all look the same on a reference sheet.
A verified reference removes that choice. On TradeRepute every reviewer is an ID-checked person at a verified, active business, and every reference needs documents such as invoices, bills of lading or contracts that show the two companies traded. Reviewers stay anonymous to the public, so they can be candid about problems.
What good looks like
What makes a trade reference worth reading
It covers behaviour, not opinion
Payment timing, delivery, quality and dispute handling are specific and comparable. Vague praise is not.
It is independent
The company being reviewed did not choose the author and cannot edit, reply to or remove the reference.
It is recent
A reference from years ago says little about today. Check when the trading took place.
It is moderated
A human team should screen references for personal data, defamation and conflicts of interest before publication.
It protects the author
People report problems honestly only when they will not face retaliation. Anonymity is a quality feature, not a loophole.
Process
Using trade references in a deal
- 1
Request and verify
Still ask the company for its own referees, then compare them with independent, verified references.
- 2
Read the pattern
One bad review can be an outlier. A repeated theme in payment or delivery is the thing to act on.
- 3
Match the terms to the risk
Strong references support open account. Thin or mixed references call for security such as prepayment or a letter of credit.
Frequently asked questions
A credit report summarises financial data and payment history from a bureau. A trade reference is first-hand feedback from a business that dealt with the company. They answer different questions and work best together.
Related guides
Know who you’re trading with before you commit.
Search is free. You only pay to unlock a report when verified references exist.