Better Payment Practice Group issues guidance on applying for Bank references

The Better Payment Practice Group [BPPG] has issued guidance to small businesses on obtaining bank references to help credit check new customers. This website, now hosts a form and template letter requesting a reference from a new customer’s bank and advice on how and where bank references are best used.

The new guidance complements the advice already offered on the payontime website to help businesses check creditworthiness. This includes:

• Priortising accounts

• Obtaining status reports

• Applying for trade references

• Visiting customers

• Using company accounts

Searching the Register of County Court Judgments
Andy Brenan, Director, British Bankers’ Association and member of the BPPG, comments: “Bank references are a useful tool for businesses to check credit worthiness of new customers however it should be remembered that this is an opinion, not a guarantee. For this reason, bank references should be used alongside other credit checking methods.”

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