Why You Need a Credit Application By Elliott M. Portman A credit application is a strategic tool to protect your business, incentivize timely payments, and establish clear consequences for non-payment. A credit application serves multiple purposes:
- it is an information-gathering tool;
- it is a creditworthiness assessment;
- it spells out the responsibilities between the parties;
- it can be the heart of your debt collection strategy.
What Should a Credit Application Include? 1. Legal Name of the Customer 2. Business Structure 3. Financial Information about the Customer 4. Banking Information 5. Trade References 6. Terms and Conditions of Sale 7. Finance Charges on Late Payments 8. Recovery of Your Attorney Fees 9. Choice of Venue for Litigation Elliott M. Portman Portman Law Group, P.C. 1393 Veterans Memorial Highway; Suite 212N Hauppauge, NY 11788 (631) 629-5640 www.PLG-NY.com Twitter – @EMPEsqNY Martindale – Top rated attorney (AV-Preeminent) New York Metro Super Lawyers – Creditor Debtor Rights attorney