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Credit applications: terms to bind your customer.

Business Credit

| May 01, 2006 | Brittain, Mike; Blakeley, Scott | COPYRIGHT 2006 National Association of Credit Management. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Why A Credit Application?

The credit professional documenting the credit sale appreciates the importance of a credit application. A credit application can be central to setting forth the rights of the vendor in the event of a dispute with the customer. A credit professional may limit credit risk and address contingencies with an effective terms and conditions section of a credit application. This article discusses some of the key terms and conditions that a credit professional may consider to bind the customer. Mike Brittain discusses the credit application as a source of information and basic terms of the credit application, while Scott Blakeley discusses some ...

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