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Trade Reference Letter for Australia

Trade Reference Letter Template for Australia

A Trade Reference Letter is a formal business document used in Australian business practice to provide an objective assessment of a company's trading relationship with another business entity. It serves as a testament to the referenced company's business conduct, creditworthiness, and reliability in commercial dealings. The document, governed by Australian commercial law including the Competition and Consumer Act 2010 and Privacy Act 1988, provides crucial information about payment history, transaction patterns, and overall business relationship quality, helping recipients make informed decisions about potential business partnerships or credit arrangements.

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What is a Trade Reference Letter?

The Trade Reference Letter is a vital business document in the Australian commercial landscape, used when companies need to verify the creditworthiness and business conduct of potential partners or clients. It is commonly requested during credit applications, tender processes, or when establishing new business relationships. The document typically includes details about the duration of the business relationship, payment history, credit terms, and general conduct of business dealings. Under Australian law, particularly the Competition and Consumer Act 2010 and Privacy Act 1988, these letters must be factual, objective, and avoid any misleading or deceptive statements. Trade Reference Letters are especially important in industries where credit terms and reliable business relationships are crucial for operations.

What sections should be included in a Trade Reference Letter?

1. Letterhead Details: Company logo, name, address, contact details, and date

2. Recipient Details: Name and address of the party requesting the reference

3. Reference Subject: Clear identification of the business being referenced

4. Relationship Context: Duration and nature of business relationship with the referenced company

5. Trading History: Information about payment history, typical transaction values, and credit terms

6. Performance Statement: General statement about reliability, timeliness, and quality of business conduct

7. Closing Statement: Willingness to continue business relationship and standard closing

8. Signatory Block: Name, position, and signature of authorized representative providing the reference

What sections are optional to include in a Trade Reference Letter?

1. Specific Transaction Examples: Include when detailed examples would add value to the reference

2. Credit Limit Information: Include when specifically requested and appropriate to share

3. Industry-Specific Performance: Include when the business operates in a specialized industry with specific performance metrics

4. Dispute Resolution History: Include when relevant and positive, showing how challenges were handled professionally

5. Future Business Prospects: Include when there are confirmed future contracts or commitments

What schedules should be included in a Trade Reference Letter?

1. Transaction Summary: Optional attachment showing summary of transaction history (if appropriate and requested)

2. Certificate of Good Standing: Optional attachment confirming business registration status (if available)

3. Product/Service List: Optional attachment listing specific products or services involved in the trading relationship

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Australia

Publisher

Ƶ

Document Type

Reference Letter

Cost

Free to use
Relevant legal definitions




















Clauses













Relevant Industries

Retail

Wholesale

Manufacturing

Construction

Professional Services

Financial Services

Information Technology

Logistics and Supply Chain

Mining and Resources

Agriculture

Healthcare

Education

Real Estate

Telecommunications

Relevant Teams

Finance

Legal

Commercial

Credit Control

Accounts Receivable

Business Development

Sales

Operations

Risk Management

Compliance

Procurement

Relevant Roles

Chief Financial Officer

Finance Manager

Credit Controller

Accounts Receivable Manager

Commercial Director

Business Development Manager

Company Secretary

Legal Counsel

Procurement Manager

Sales Director

Managing Director

Operations Manager

Financial Controller

Risk Manager

Compliance Officer

Industries





Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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