 |
 |
Using Credit References
There is now an increased awareness of the importance of credit information in the business world. Providing credit references to an intended supplier can have a dramatic impact on how you do business.
Many suppliers and vendors as well as financial institutions will undertake comprehensive credit reference checking and credit check reports to build a picture of your credit worthiness. This is largely so that they can mitigate the risk of entering into arrangements with non payers, as much as possible.
Suppliers will often ask for the names and contact details for businesses or people that have supplied you finance or goods on a credit basis. When contacting these referees they will be trying to find out about the relationship you have with the supplier including, terms of payment, payment history including length of relationship, quantities of supply and subsequent payment of this stock and general communications.
But while credit reference checks can be subjective and even a little biased, the supplier may undertake a credit check report which will allow them to seek basic factual information about your credit history. They will source information including recent applications for finance or credit, information on any default payments or court judgments against you and basic personal information so they can verify that what you have told them is accurate
