Credit account application form

If your customer asks for a credit facility,
use this form and our covering letter to put the wheels in motion.

Giving customers credit?

“Don’t I need a licence under the Consumer Credit Act?” No, you don’t. Trade credit given in the normal course of commercial dealings is exempt from any licensing requirement. So provided you’re supplying goods or services to your business customer, you can agree whatever credit facilities you wish.

Credit reference checks?

These can easily be carried out on the names disclosed on the application form through any of the major credit reference agencies for a small fee.

County court judgments?

If the credit reference check discloses any county court proceedings, you should consider refusing a credit facility. Why? Because one way or another, the customer has got itself into a mess and you have been given notice that it may happen again. This time to you.

Tip

The application form asks for names of two trade references and their phone numbers. This gives you implied authority to make enquiries of the referees direct. Take advantage of this and ask searching questions using our form of reference request information about your new customer’s trading history and specifically ask whether that company has experienced any account settlement problems.

Time limit for settlement?

Whatever settlement period you choose must be very strictly adhered to. Why? Because any flexibility on the part of your accounts department will very soon be detected and may be abused by your customer. Tempting though it may be to give valued account customers an informal extension of the settlement period, don’t. Before you know it, they’ll owe you thousands of pounds. And worse, then go out of business.