Trade Reference Best Practices for Faster, Clearer Vetting

Crafting a clear, comprehensive trade reference questionnaire is one of the most effective ways to vet new customers’ payment habits and creditworthiness. A well-designed questionnaire delivers consistent, actionable data—helping credit managers minimize risk without endless back-and-forth.

In this guide, we’ll cover why a strong trade reference questionnaire matters, outline its key components, walk through a step-by-step build process, and share best practices to maximize response quality.

Why a Great Trade Reference Questionnaire Matters

• Consistency: Standardized questions ensure every reference is evaluated on the same criteria.
• Accuracy: Clear phrasing minimizes misinterpretation and incomplete answers.
• Speed: Focused questions reduce back-and-forth, getting you answers faster.
• Risk Reduction: Targeted queries uncover payment red flags before they impact cash flow

By investing time up front, you’ll spend less time chasing unclear replies—and more time making confident credit decisions.

Key Components of a Trade Reference Questionnaire

1. Company & Contact Details
   • Reference Name & Roll
   • Company Name & Address
   • Email & Phone Number
2. Credit Relationship Overview
   • Length of Business Relationship (months/years)
   • Average Monthly Spend
   • Payment Terms Agreed
3. Payment History Metrics
   • % of Invoices Paid On Time
   • % Paid Late by 1–30 Days, 31–60 Days, 60+ Days
   • Longest Payment Delay Experienced
4. Credit Limit & Exposure
   • Current Credit Limit Extended
   • Highest Outstanding Balance
5. Qualitative Insights
   • Overall Payment Reliability (e.g., Excellent, Good, Fair, Poor)
   • Communication & Dispute Resolution
   • Any Known Financial Concerns?

Best Practices for Maximum Responses

• Keep It Short: Aim for 10–15 questions to respect referees’ time. Try to limit your questions to only the most important information, anything extra could decrease your response rates.
• Set Clear Deadlines: While being respectful, a deadline can often help move your reference up their priority list.
• Follow Up Politely: Send one or two reminders spaced a few days apart.
• Ask For More Than You Need: You will never get a 100% response rate so it can be helpful to always ask applicants for 1 or 2 extra references up front, instead of trying to follow up after getting no response.

With Tredit IQ, we can help automate this entire process from setting up a rock solid reference questionnaire, to automatic followups, and much more. If you’d like to schedule a demo please click the button below.