Welcome to the Jewelers Board of Trade (JBT) Blog, where we simplify complex topics to empower our members. Today, we're shedding light on the significance of trade references and why your active participation matters. Let's dive in!
Understanding Trade References: What Are They and Why Do We Need Them?
A trade reference is crucial credit information provided by suppliers, wholesalers, manufacturers, or service companies about a specific customer with whom they have a business relationship. This data contains specific details about payment experience, like highest recent line of credit and past due amounts, if any. This data includes the date of last sale, terms of sale, current amount owing, amount past due and more.
These details are requested when setting up new accounts, updating a credit report, reviewing a payment score, or when a score changes due to a lack of trade information. Trade References are important because they serve as a way to vouch for the credibility, reliability, and financial stability of a business.
The Importance of Trade References: Why Does it Matter?
Trade references play a pivotal role for JBT when determining or reviewing a payment score for a company. For our members, these references offer valuable insights into how a company pays other vendors in the industry, assisting in making informed credit decisions.
Since only JBT members have access to credit reports and pay scores, a reference provided by one vendor has the potential to help any JBT member seeking information on that specific company. The absence of references in a report may indicate limited credit experience, a failure on the part of the company to provide vendor information, or delays in receiving responses from vendors solicited. On the other hand, comprehensive trade references help establish trust and credibility, which facilitate smoother transactions and foster positive relationships within the JBT network.
Efficiency Tips for Filling Out Trade References
To streamline the process and prevent repeat requests, vendors should complete the request in full, including:
If a vendor hasn't done recent business with the company, a simple notation like "no recent experience" can prevent them from receiving another request for the same customer for a while.
Confidentiality: Your Information Is Safe with JBT
It's crucial to note that all trade information submitted by members to The Jewelers Board of Trade is handled with the utmost confidentiality. When other JBT members review a trade reference within the credit report, they can only view the trade dollar amounts and the status of the payment. The name of the member who submitted the trade reference is withheld, ensuring the privacy and security of your information.
Actively participating in trade reference submissions is not just a responsibility; it's a strategic move that benefits you and your fellow JBT members. Upgrade to enhanced membership and embrace a more efficient, cost-effective approach to trade references with JBT.
Upgrade to Enhanced Membership for Added Benefits
Here's a game-changer: by upgrading to an Enhanced Membership, JBT members not only gain access to additional products at reduced or zero cost, but also avoid receiving individual requests for trade references. Members can unlock an upgrade by submitting a file with their customer receivables to JBT, just once monthly, saving time and money in the long run. This upgrade is a time and money-saving benefit in the long run.