Updated: Jan 26, 2022
Business owners often submit trade references to be included in their business credit file only to later find they were not accepted or the data is not being included.
This can be especially frustrating after paying for a service intended to do just that. Unfortunately, one never knows when purchasing the service or uploading their vendors whether they will get accepted or not.
In this instance, we will use D&B as an example...
When asked why a trade reference is declined, D&B representatives are only permitted to reveal five possible reasons:
Vendor is not a US-based business
Vendor does not have a full D&B file of their own
Vendor is a bank, credit card, utility, or financial institution
Vendor already auto-reports into D&B’s automated system
Have failed in six attempts to reach vendor to gather credit history
In reality, there are about 45 reasons why a trade reference can be declined or blocked from reporting into your file. In most cases, your vendors will get declined for simple reasons that have no bearing on your company or how you pay your bills. In addition to the primary 5 above, Here are 10 more of the most common reasons:
Vendor thinks it's a sales call and tells D&B to never call them again and hangs up
Vendor’s phone only rings to an answering machine or fax tone
The vendor declines to report credit references on any their clients
The vendor’s callback number is not associated to the business
Vendor refuses to answer one or more of the required questions
Vendor does not recognize business name as a current customer
The vendor's email address bounces back as undeliverable
The only credit history is an unused line of credit
The vendor’s SIC code deems their company as unqualified
Vendor is being investigated for suspicious activity or reporting
Only D&B can accurately identify why a vendor has been declined, but they are not required to provide that information and, in most cases, they will not. If the vendor has been declined twice, your best practice is to accept D&B’s determination and submit a different vendor.
LESSON: You'll have to pay for a Creditbuilder service to submit your vendors to D&B. Even though there is a possibility your trade references will not get accepted to report into your credit file, it is still far better to give it a try since that is the fastest way to boost your scores and ratings. You'll generally know within 30 days if it was a hit or miss.