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Overview. A well-defined credit application provides the basis for gathering information and implementing the company's policies. The credit application is the primary document which allows the credit professional to ?Know Your Customer (KYC).? It may also serve as a contract. DISCIPLINARY. CORE IDEAS.
The credit application (Application) is the. initial document used by Vendors to collect. information and establish contractual terms. with the Applicant. Some vendor/customer.
WHAT TO INCLUDE IN A BUSINESS CREDIT APPLICATION Name of the business, address, phone and fax number. Names, addresses, Social Security numbers of principals. Type of business (corporation, partnership, proprietorship) Industry. Number of employees. Bank references. Trade payment references.
Eight steps to establishing your business credit Incorporate your business. ... Obtain an EIN. ... Open a business bank account. ... Establish a business phone number. ... Open a business credit file. ... Obtain business credit card(s) ... Establish a line of credit with vendors or suppliers. ... Pay your bills on time.
Writing & Reviewing a Credit Application: What You Need to Know Customer's Name. ... Customer's Address and Telephone Number. ... Customer's Employer Identification Number (EIN) ... Customer's Bank Information and Credit References. ... Guarantor's Name, Address, Telephone, Social Security Number, Etc. ... Signature Line.
(e) Applicant means any person who requests or who has received an extension of credit from a creditor, and includes any person who is or may become contractually liable regarding an extension of credit.
Loans and credits are different finance mechanisms. While a loan provides all the money requested in one go at the time it is issued, in the case of a credit, the bank provides the customer with an amount of money, which can be used as required, using the entire amount borrowed, part of it or none at all.
A customer credit application form should typically include fields for personal information, financial information, employment details, references, and authorization for credit checks. Additionally, you can customize the form to include specific fields that are relevant to your credit application process.