Although it is not common in Japan, there is trade reference (credit reference) as a common business practice overseas. It is an intercompany transaction version of bank reference that confirms the contents of transactions, bank to bank.
Even in Japan, it is a common practice to indirectly interview the fellow trader about the transaction situation. However, in order to do so, it is essential to build a human network among traders. It is necessary to become familiar on a regular basis through industry meetings and exchange meetings.
Exchanging internal payment information of business partners to third parties is a common practice in some countries which would raise eyebrows in Japan. The credit application mentioned above also has a section for credit inquiries. Generally, you should list three to five major suppliers and their contacts.
Based on that, the suppliers are contacted to obtain the customer's payment information. You can hear the transaction amount, as well as payment terms and conditions and whether there is a delinquency.
Whether suppliers disclose information is not enforced by law but is optional. However, instead of offering information to the other party, they receive an offer of the information. So as to speak, it is the spirit of giving and taking.
In order to obtain valuable information from the suppliers, I would recommend that such a credit reference be made when Japanese companies trade overseas.
