Credit Application Form

How to Create a Credit Application Form?

Regardless of the type of Credit Application Form, you should request the following information in your form:

1. Contact name or business name.
2. Phone number and email address.
3. Address of the customer or business.
4. Terms and conditions of the loan.
5. Repayment terms for the loan.
6. A final signature section acknowledging the agreement and terms and conditions.

If you are creating a commercial Credit Application Form, you will want to also ask for the title of the applicant completing the form, the business' tax ID number and the date the business opened; bank references, trade references, and other financial information (including questions on bankruptcy).

If you are creating a personal Credit Application Form, you will want to ask for the applicant's citizenship and place of birth, home-ownership and education status, marital status, the purpose of the loan, employment information (the type of business, title, address, and phone number of the business), personal references, etc.

After the sections detailing the applicant's information, you will want to include the terms and conditions of the loan. This will be the most important part of the document, so it is important to write each term in detail to avoid future legal disagreements. Topics to cover in the terms and conditions section should include:

• Confirmation of correct information;
• Loan release;
• Loan interest;
• Repayment;
• Prepayment and overpayment;
• Statements of account;
• Late payment;
• Disputes in case of a breach;
• Agreements to modification.

What Is a Vendor Credit Application?

A vendor Credit Application is required whenever a business asks a product vendor for payment terms (such as purchasing items wholesale that your business will later sell to customers). This is a standard practice that helps the vendor ensure you are a trustworthy business partner that will be able to pay them the entire worth of the goods sold to you.

Often they will send you, the customer, a Credit Application asking for information such as:

1. The number of years you have been in business.
2. Contact information (billing address, phone, website, and email).
3. The type of business (LLC, Corporation, Partnership, NGO, etc.).
4. Data Universal Numbering System (DUNS) number.
5. Banking information.
6. Trade references.
7. Owner's information.

The vendor will also send a similar form to the trade references you have listed with similar questions. The vendor will be interested to know additional details such as the highest level of credit you have been given, if you make timely payments, the date of the last invoice, and if you make payments within the terms given (such as not asking for continuous extensions or forgiveness for late payments). Many businesses will keep a Credit Application document on file to be able to quickly complete the information needed for vendors, but it is important to routinely check on the information listed, since any errors could result in the vendor rejecting to do business with you.

Related Forms and Topics:

• Financial Statement;
• Corporate Guarantee;
• Personal Guarantee.