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A Trade Reference Letter is an essential business document in the South African commercial landscape, used when companies need to verify the credibility and trading history of potential business partners or clients. This document is particularly important in contexts where new business relationships are being established, credit facilities are being negotiated, or tender requirements need to be met. The letter provides verified information about a company's payment practices, transaction history, and overall business conduct, while adhering to South African legal requirements including the Protection of Personal Information Act (POPIA) and the Consumer Protection Act. It serves as a risk assessment tool for businesses and financial institutions, helping them make informed decisions about commercial relationships. The document's content and format are influenced by South African business practices and regulatory requirements, making it a crucial element in local business operations and credit applications.

1. Letterhead Details: Company logo, name, address, and contact details of the company providing the reference

2. Date and Reference Number: Current date and any internal reference number for tracking purposes

3. Recipient Details: Name and address of the person/organization requesting the reference

4. Subject Line: Clear indication that this is a Trade Reference Letter for [Company Name]

5. Business Relationship Overview: Duration and nature of the business relationship between the parties

6. Trading History: Details about the trading relationship, including typical transaction volumes and frequencies

7. Payment History: Information about payment practices and reliability

8. Closing Statement: Positive summary statement and willingness to provide further information

9. Signature Block: Name, position, and signature of the authorized representative providing the reference