Obtaining a signed credit application should be an integral part of the process of extending credit to a customer. The application provides information necessary to determining the risk of not being paid in a timely manner and helps to establish a credit limit. Without a credit application, you won’t have explicit permission to contact the applicant’s bank or trade credit references. With such an important document, it is important that you include every necessary detail.The following elements should be included in your business credit application. Without them, you could be missing important information about your potential customer.
Legal name of business
Business phone, fax and email
Incorporation date and length of time in business
CUSTOMER FINANCIAL INFORMATION
Amount of credit requested
Most recent full year financials or tax returns available
Bank name and branch address
Bank contact name, phone, email and fax
Name, address, phone and email address
Signature block and legal notice
Owner or authorized party must sign
LANGUAGE TO CERTIFY SIGNER
Declares information provided is correct
Authorizes contact of references
Accepts any terms and conditions pertaining to sales such as late charges
You need to independently verify the existence of the customer. A completed application could still contain fraudulent or misleading information and references are chosen with intent. Google is your friend. Search for and confirm the customers address and phone number. Call the number if you have any concerns and tell the person who answers that you are calling to verify the billing address for a new customer.
Anytime Collect is a leading CLOUD-BASED accounts receivable software. Made specifically for businesses selling on credit terms, Anytime Collect AUTOMATES invoice dispute management, cash forecasting, customer communications, invoice presentment, online bill pay and credit management. The entire collections process becomes QUICKER AND EASIER.