Are you looking for new clients? In that case, business referrals will be your best ally. They are similar to recommendations made by friends or family, but in this case, they come from companies or people with whom you have worked or closed deals.
If you're about to close a deal with a new client and they're asking for a business reference, don't worry. Here we're going to tell you what business references are and how to get them . It's easier than you think! Keep reading to find out how to do it.
What are trade references?
Trade references are like badges phone database of honor in the business world. They are basically the “seal of approval” that your past clients give you.
Generally speaking, business references are a type of recommendation letter given to you by other companies, clients, or people with whom you have had business dealings in the past.
When can you use trade references?
Trade references are usually exchanged between companies, entrepreneurs and customers, but they can also be requested by banks and suppliers .
A business reference can help you:
Banks : Banks and other financial institutions often ask for business references from loan or credit applicants. This helps them assess whether your business is creditworthy for the loan.
Suppliers : Suppliers can ask their clients for business references . This way, they can have information about the client's reputation and ability to pay.
What information should a business reference contain?
This document provides information or opinions about your company or the history that the company or person who created it has with you. It also mentions whether both parties continue to have a business relationship and what these are like.
Here are some common items that might be included in a business reference :
Identification data : name and full address of the company or individual to whom the reference relates. Contact details, such as telephone numbers and email addresses.
Business relationship history : start date of the business relationship. Nature of the relationship (supplier-customer, business partner, etc.).
Product or service description : Details about the products or services provided. Quality and compliance of the products or services.
Payment history : information about agreed payment terms. Payment history, including timeliness of payments.
Business behavior and ethics : level of satisfaction with the business relationship.
Contract compliance – details about a service contract , hourly or part-time, fixed-term or any existing agreement. Whether there were any issues with compliance with the terms.
Personal references : contact information of key people in the company with whom you have had a business relationship.
Current status of the relationship : whether the business relationship is still active. Recent changes or relevant situations.
Recommendation : An overall evaluation of the company or individual, recommending or not recommending future business transactions.