Customer References Checklist
How to collect and check customer references that actually mean something — asking for the right referees, posing the right questions and reading between the lines.
What this checklist covers
- Ask for references that genuinely reveal payment behaviour
- Pose questions that surface useful detail
- Read the answers critically, including what is unsaid
- Record the references with the account
6 min
Before you start
References only help if they come from people who have actually extended credit to the customer and seen how they pay. Prepare your questions before you call so you get comparable, useful answers.
- The referee details the customer provided on the application.
- A short, consistent set of questions to ask each referee.
- A note of the credit limit and terms you are considering.
- The customer file to record the results.
Step 1 — Get the right referees
- Ask for trade references — suppliers who have given the customer credit, not friends or related parties.
- Request at least two, and three for a larger limit.
- Confirm the referees are independent of the customer.
- Be wary if the customer is reluctant to provide referees or offers only related businesses.
- Consider a bank reference for significant limits.
Step 2 — Ask the right questions
- How long has the customer traded with you?
- What credit limit and terms do they have, and do they stay within them?
- How do they actually pay — on time, late, or only after chasing?
- Have there been disputes, broken promises or dishonoured payments?
- Would you continue to extend them credit?
Step 3 — Read and record
- Listen for hesitation or guarded answers as much as the words themselves.
- Treat a referee who is reluctant to recommend continuing credit as a red flag.
- Cross-check what referees say against the credit report and application.
- Weigh the references into your limit and security decision.
- Record who you spoke to, when and what they said.
Common mistakes
- Listing referees on the form but never actually phoning them.
- Accepting related-party referees who will only say good things.
- Asking vague questions that produce vague, useless answers.
- Ignoring a referee's hesitation because the words sounded fine.
- Not recording the reference, so the next reviewer cannot rely on it.
Good reference checks add a human layer to the numbers from a credit report. Use the Merion tools to keep your checks organised. This is general information, not legal advice — handle any personal information you collect appropriately.
Key takeaways
- Use independent trade referees, never related parties
- Ask pointed questions about how the customer actually pays
- Read hesitation and silence, not just the literal answers
- Record every reference so it can be relied on later
Frequently asked questions
What is the most useful question to ask a referee?
Whether they would continue to extend the customer credit. It forces an honest summary judgement. A referee who hesitates or hedges on that one question is often telling you more than a page of polite answers would.
How many references should I take?
Two as a minimum, three for larger limits. The aim is to hear from several independent suppliers who have actually given the customer credit, so one unusually positive or negative voice does not skew your view.
Can I trust references the customer chooses?
Treat them with healthy scepticism, since a customer naturally picks referees who will speak well of them. Independent trade referees still reveal useful detail, but combine references with a credit check rather than relying on them alone.
Work the checklist, then get paid
Use the free Invoice Generator, then let Merion recover anything that goes unpaid — commission-only.