If you are operating a produce or a transportation business, it is essential to be listed in the Blue Book. A basic listing, consisting of company name, address, and phone number is free; additional information, noting names of brands, personnel, and contact information may be included at a small charge per line, per year. The idea is to provide a clear and concise picture of who you are and what you do, such that those seeking information about your business, can find what they need quickly, accurately, and reliably.
A listing, while important in conveying the salient facts about your business, is not enough. What completes the picture is your Blue Book Rating. A rating adds credibility to business dealings and assists in establishing your firm as a trusted entity. Many thousands of dollars, stemming from business decisions, are based on Blue Book Ratings each and every day.
There are two different types of Blue Book ratings: predictive and historical.
A predictive rating assigns the likelihood that a company will become delinquent or go into default within a twelve- month period. The rating is expressed in terms of a score, from 500 to 1000—the higher the score, the less likely a business will experience such an event; the lower the score, the greater the risk.
An historical rating consists of three parts:
A financial rating—also known as a credit worth estimate, it is based on an evaluation of an accountant-prepared year-end financial statement or tax return, representing the total amount of credit that should be extended to a business.
Trade practices rating—based on trade feedback and expressed from X to XXXX, it indicates how a company conducts its business operations. Such factors as trustworthiness, reliability, and honesty are considered by those reporting.
Pay description—based on trade feedback, it notes the average number of days for payment. Payment is measured from the date of invoice to the date payment is received. Pay descriptions range from AA (within 14 days) to F (60 days plus).
Establishing a Blue Book rating is easy to do. The first step is to provide a list of trading partners with whom a business deals and a year end accountant-prepared financial statement (balance sheet and income statement as a minimum) or tax return. It takes approximately 9 months to earn a complete rating.
If you have questions about a Blue Book listing or rating, contact the Blue Book at [email protected] or call 630-668-3500.
For 117 years, Blue Book has been the standard by which sound business decisions have been made and trust established between trading partners.
