Did you know…Credit Application
Internal collections policies and procedures actually BEGIN with the process of granting credit to a new prospective customer? Making use of a robust credit application (download a sample application here) during this process can serve a number of valuable purposes. For instance: 

  1. It gives you (the creditor) more information on which to base your credit decisions.
  2. In the event the new customer ever goes past-due, the information contained within the credit application can be invaluable to your collection agency.
  3. Updating credit applications with your existing customer base periodically can help keep you abreast of changes in the structure of your clientele.

Did you also know…
Credit applications originated within collection agencies? The typical information provided by a well-written credit application can give collectors a tremendous amount of information and leverage that can drastically improve their chances to collect on those past-due accounts. Knowledge is power and never more so than in today’s economic environment.

What’s your take?
Does your company utilize credit applications as part of its A/R procedures? If so, how have they helped your business and what are the steps you typically take? Share your thoughts with us using the link below!