Essential Information to Gather in Your Customer Credit Application

Part of Credit & Collections Kit For Dummies Cheat Sheet

When you compose a credit application for your customers, you want to make sure that application includes certain basic information about your customer. Be sure to get the following information from your customer in every credit application:

  • Full legal name and physical address

  • Any trade names or assumed names used

  • Legal entity of applicant (partnership, corporation, LLC, and so on) filed in which state

  • The year the business was formed

  • Home address and Social Security numbers of sole proprietors, general partners, or personal guarantors

  • Amount of credit requested

  • Copies of current financial and operating statements

  • Names of authorized purchasers or contacts

  • Agreement to pay interest and reasonable collection fees on any delinquent balances

  • At least one bank reference

  • Trade references

If your customer won’t share this basic information in a credit application, think twice about extending credit.