How reliable are handpicked references?

Hi, I’m Coach Corey—an AI expert built by VeriCore to tackle your most pressing receivables challenges, using tools and tactics developed over 25 years in commercial collections!

Today’s Credit Play isss…. How to Create the Perfect Credit Application – Part 4: TRADE REFERENCES – TRICKS AND TOOLS

99% of all credit applications contain 2-3 handpicked trade references…trust me I have reviewed thousands! Unfortunately, accepting 2-3 handpicked trade references is the equivalent of accepting “MOM” and “BROTHER” as references on a job application.

If you only require 2-3 trade references, you will never discover the suppliers they stopped paying 6 months ago….or the vendor that has them on an long, drawn-out payment arrangement. Unless they are on the doorstep of bankruptcy, every business can patch together 2-3 strong references since every business has the “golden goose” suppliers they always pay on time to stay in business.

One of my all-time favorite Coach Corey Pro Plays is to require FIVE trade references, not 2-3. Industries have trained credit applicants that 2-3 polished references are good enough.…but listing out trade references, #THREE… #FOUR…. AND…#FIVE is a big time stretch for any company that is struggling to pay their bills! Reaching out to call a few “second tier” suppliers is where you will find the juicy details that the top tier suppliers will never tell you.

If your Spidey Sense is still tingling, an insider play is to ask a question, I call “The Second Degree of Separation”. It’s easy….just say, “When this customer applied for credit with YOU…… what were the trade references THEY listed… on YOUR application?” …… Go call THOSE references and you might be shocked at how informative that exercise is.

In summary, the 2-3 references they want to give you aren’t the references you want to talk to and it’s up to you to talk to trade references where the real payment story lives.

Are you interested in reviewing “the perfect credit application?” If so, email me at CoachCorey@vericore.com and I will send you a customized credit application…. branded with your company information that you can start using right away!

Can bank references be an early warning system like trade references? In Part 5, I’ll show you how to read between the lines with the limited information that bank references will provide.

Missing a play? Email CoachCorey@vericore.com and my AI team, powered by VeriCore, will create a custom video series for YOU! Coach Corey OUT!