Let’s make it real, as a businessman, you must want your business increased. Just believe that by giving credit facility to your customer, they will purchase your product or service repeatedly. This is an exclusive convenience. Your customer can transact straight away, then pay later. So, the credit application form is needed here.
A credit application form is a sheet contains several questions about customer identity and other information for credit purpose. Usually, it is issued by a bank or a certain company. This application will show you a potential customer. The more detail they fill the form, the easier you select which deserve the first service.
All About the Credit Application Form
Before you draft your credit application form, you must know what it speaks about. Here is more about the form you need to know:
1. Who Issues This Form?
As mentioned before, a bank or any business field can create this form. It is a part of an agreement with the customer. However, the company cannot just believe the data given. The sales or analyst unit must check its validity. Whether the information is true or fake.
In a different company, this form is not only used for credit approval, but also for risk analyzing. Well, since the customer deals the credit, the company gives them a lower price. Even in the end, the amount will be higher, the company should cover up the whole cost first. If the company does not do wise analysis, it could bother their cash flow.
2. The sample of Credit Application Forms
There are various templates of credit application forms. It depends on what kind of information needed. But there will always be questions about personal identity, like name, address, ID number, phone, occupation, company, etc. Furthermore, the company also want to know your bank information and business or credit references.
These images below are samples of credit application forms. Just double click the box to see more details.
By expanding the questions, the company will know more about their customers. Starts from their hobby, interest, until the ability to pay. By using this information, the company can offer more product or higher credit to them.
3. Is It Matter for The Customer?
Of course! From the first part, it seems like the form only gives benefit to the company. Now, look at the use of this form from the customer side. By providing actual data, the customer will be trusted as a capable buyer. There is no hesitating to deliver big loan because the provider believes the customer can pay the installment every month.
Besides, the customer can also enjoy the product or service even has not enough money at that time. It is an advantage, especially for the impulsive one. They are the one who cannot wait to fulfill their needs and wants.
4. It is An Equal Agreement
For some credit application form, there are other sheets to read. It contains some points about the agreement. Usually, the points talk about the rights and obligations of both parties, including a punishment. This punishment can be applied as a penalty or other forms. That is why this sheet called a customer credit application form and agreement.
Learn more about the customer credit application form and agreement below. It is important for the customer so does the company as well. The following is a description of the agreement:
More or less the points will be like the sample above. Those are must be understood by the company and the customer. Because both have a different risk to face. The customer will probably fail to pay, and the company has to shoulder this lost.
5. Credit Application Process at Glance
After the customer fills the form, both parties understood the agreement, then it is time to process the application. In point one we mentioned that the form used as the basis of risk analysis. Yes, the next step is delivered to the sales unit or credit analyst. They decide whether the customer is eligible for the loan or not.
The analyst will also determine the amount of loan. The more credible the customer is, the bigger the loan they can get. So, it is important to have a great credit historical background.
20 Templates of Credit Application Form
As the business developed, the credit application form is necessary. More than to increase sales, it is useful to maintain a loyal customer. As the customer is also easier to access their needs. Speak to any lawyer if more details needed. For a bigger company, it has a more complex agreement to be handled. Below are more various templates as the sample: