Template · Script

Trade reference verification call script — free template

When a new client submits a credit application with trade references, someone on your team needs to call those references and ask the right questions. This script structures that call. The goal is to get honest, specific information about how the applicant actually pays — not just confirmation that they exist as a customer.

Use it for

  • Any business evaluating a new client's credit application before extending net terms.
  • Situations where the proposed credit limit is large enough that a bad debt would matter.
  • When the client's payment history with your business is unknown.

Do not use for

  • Consumer credit checks — calling personal references for consumer debt is governed by the FCRA and requires specific compliance steps.
  • References for clients you already have a long payment history with.

Variables to fill in

YOUR_NAME
Your name
YOUR_BUSINESS_NAME
Your business name
APPLICANT_NAME
Name of the client you are evaluating
PROPOSED_CREDIT_LIMIT
The credit limit you are considering extending

The template

Select all and copy. Replace the {{double-brace}} placeholders with your details.

TRADE REFERENCE VERIFICATION CALL SCRIPT
{{YOUR_BUSINESS_NAME}}

Use this script when calling trade references listed on a credit application. Take notes during the call — you will refer back to them when making your credit decision.

────────────────────────────────────────────────
OPENING
────────────────────────────────────────────────

"Hello, may I speak with your accounts receivable department, or the person who manages your vendor payment accounts?"

[Once connected:]

"Hi, my name is {{YOUR_NAME}} calling from {{YOUR_BUSINESS_NAME}}. We have received a credit application from {{APPLICANT_NAME}}, who listed your company as a trade reference. I have a few brief questions about your experience with them — would now be a good time?"

────────────────────────────────────────────────
QUESTIONS TO ASK
────────────────────────────────────────────────

1. "How long have you been doing business with {{APPLICANT_NAME}}?"
   [Note: Less than 6 months = limited signal; 1+ years = meaningful]

2. "What is the credit limit you have extended to them?"
   [Note: Compare to {{PROPOSED_CREDIT_LIMIT}} — if your limit is much higher than theirs, proceed carefully]

3. "Do they generally pay within terms? What are your payment terms with them?"
   [Note: Listen for hesitation — "generally" or "usually" often means occasional late payments]

4. "Have they ever gone 30, 60, or 90 days past due on an invoice?"
   [Note: 30+ days past due is a yellow flag; 60+ days is a red flag]

5. "Have you ever had to put them on credit hold or suspend service for nonpayment?"
   [Note: Yes = significant red flag]

6. "Is there anything else about their payment history you think would be useful for us to know?"
   [Note: Open-ended — often the most revealing question]

────────────────────────────────────────────────
CLOSING
────────────────────────────────────────────────

"Thank you very much for your time. We appreciate the reference."

────────────────────────────────────────────────
WHAT TO DOCUMENT
────────────────────────────────────────────────

After the call, record:
- Reference company name and contact name
- Date and time of call
- Answers to each question above
- Your overall impression: Positive / Neutral / Negative / Declined to answer

────────────────────────────────────────────────
RED FLAGS SUMMARY
────────────────────────────────────────────────

Stop and reassess if you hear:
- "They pay when they feel like it" or similar vague answers
- Hesitation or reluctance to answer questions about payment speed
- History of credit holds or service suspension
- References who say they have stopped doing business with the applicant
- A credit limit much lower than your proposed limit with no explanation

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This template is general-purpose educational content, not legal advice. State law varies and attorney review is recommended before use. Syntharra is not your attorney.

Reference checks prevent bad credit decisions. Once you've onboarded a client, Syntharra handles invoice follow-up so early screening is your only collections job.

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