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What Is A Credit Application Form?

by shagun Saini
What Is A Credit Application Form

You usually take credits or loans. But do you know What is a credit application form? How can you apply for credits using the credit application form? Here, we will know What is a credit application form? What type of information does a credit application include? Credit application examples with the Credit application process, and also know about What is a trade reference on a credit application? What is a credit grantor on a rental application? What is a credit application for a car? And What is a credit application for a company?

So, let’s start with What is a credit application form? And all its related terms.

What Is A Credit Application Form?

The application for credit or a credit application form is typically an application form that is submitted for extension of credit. The credit applications are filed by the respective borrower or the credit taker and submitted to a credit lender. The borrower or the credit taker can submit the credit application using online as well as offline mode, where all the requested details should be there in the application for credit form, as without the details the application of the credit will not be processed further.

A fee for credit application is also charged by some of the lenders. Nowadays most credit applications are submitted online.

Information Needed For Credit Application

A representative credit application form requires that at least the following information should be provided by the borrower, which is as follows:

  • Name as well as the address of the applicant
  • Name as well as the address of any parental company
  • All the contact information i.e. phone number, e-mail addresses, or any other relevant contact detail to be shared.
  • Type of entity or company whether its corporation or partnership or proprietorship, etc.
  • Names of principals or the directors or the officers
  • Any Bank references
  • Trade references -at least three
  • Tax ID as well as the DUNS number
  • Accessibility of financial statements
  • The credit limit that is being requested by the borrower
  • payment terms of the borrower within an agreement
  • interest on past-due amounts
  • pay for the legal and collection costs by the borrower
  • personal guaranty with spouses should be given by the borrower if possible as well as permission to pull a personal credit report
  • Right to verify data or any other detail of the borrower

What Type Of Information Does A Credit Application Include?

After discussing the above information needed for the credit application, it is somewhat clear that you need to mention those details in the credit application form. To simplify the above details, you can also note that the following details should be provided in the credit application form, which is as follows:

Full Business Details

You or the borrower needs to mention down the Full Business Details of the business or individual which areas:

  • sole trader
  • company
  • association or
  • trust.

Here, you need to make sure that the company also provide the following, to easily track their record:

  • ACN
  • registered business name
  • ABN
  • directors’ names and
  • registered address.

Contact Details

The credit application form should hold the following Contact Details:

  • Name as well as the address of the applicant
  • Name as well as the address of any parental company
  • All the contact information i.e.
  • mobile phone numbers;
  • landline numbers;
  • email addresses or
  • any other relevant contact detail to be shared.
  • business addresses

Financial Details

The credit application form should hold the following Financial Details as follows:

  • bank details
  • accountant’s details
  • credit checks should be permissible
  • trade references should also be checked

Payment Terms

The credit application form should hold the following Payment Terms as follows:

  • cash
  • cheque
  • EFTPOS
  • credit or debit cards
  • BPAY or
  • online payments.

Directors’ Guarantees

The credit application form should provide the Directors’ Guarantees who will pay out the debts of the company or the individual in case the company is unable to make payment.

Credit And Debit To Customers

The Credit and debit given to the customers should also be tracked by the borrower.

Credit Application Examples

A sample of credit application can be stated as follows:

  • Business Credit Application 

Name/Address Last:                                            First:                                                      Middle Initial: Title 
Name of Business:Tax I.D. Number 
Address: City:                                             
State:                      ZIP:                                                        Phone:  
Company Information Type of Business:                                                                                     In Business Since: Middle Initial: Title 
Legal Form Under Which Business Operates:                                                                        
Corporation          : Partnership       Proprietorship  If Division/Subsidiary
In Business Since: Name of Parent Company:                                                 Phone:  
Name of Company Principal Responsible for Business Transactions:                 
Title: Address:  City:                                          
State:                      ZIP:                                                        Phone:  
Bank References Institution Name: 
Institution Name:
Checking Account #: Savings Account #:Loan Balance: 
Address:Phone:Phone:  
Trade References Company Name:Company Name:
Contact Name:
Address:Phone:
Account Opened Since:
Credit Limit:Current Balance:

I hereby certify that the information contained herein is complete and accurate. This information has been furnished with the understanding that it is to be used to determine the amount and conditions of the credit to be extended. Furthermore, I hereby authorize the financial institutions listed in this credit application to release necessary information to the company for which credit is being applied in order to verify the information contained herein.

            _________________________________________________________               ______________________________________           Signature                                                                               Date 

Credit Application Process

When you seek credit the consumers, as well as business, has various option to choose from. Apart from traditional lenders and credit cards, borrowers there exist many companies providing credit options. So, a lender receives the application of credit where the repayment ability of the applicant is assessed, with other necessary information.

What Is A Trade Reference On A Credit Application?

A Trade Reference on a credit application depicts the report that contains the detail regarding the payment history that exists between a business customer and its supplier or vendor. It is normally referred to the creditors and suppliers of the company.

What Is A Credit Grantor On A Rental Application?

a credit grantor is generally the person or institutions who have granted you credit in the past, where a credit grantor on a rental application is generally landlords or banks who have provided you credit as loans or a credit card, etc.

What Is A Credit Application For A Car?

A credit application for a car is an application that is filed by the borrower and submitted to a credit lender. It is basically for the purpose of buying a car, therefore, termed as a credit application for a car.

What Is A Credit Application For A Company?

A credit application for a company is an application that is filed by the borrower and submitted to a credit lender. It is basically for the purpose of the company, therefore, termed as a credit application for a company.

FAQ

What Is The Purpose Of A Credit Application Form?

The application for credit or a credit application form is typically an application form that is submitted for extension of credit. The credit applications are filed by the respective borrower or the credit taker and submitted to a credit lender. So, the basic purpose of a credit application form to edge the credit risk and also to get a well understanding of the customer’s business.

How Does A Credit Application Work?

When you seek credit the consumers, as well as business, has various option to choose from. Apart from traditional lenders and credit cards, borrowers there exist many companies providing credit options. So, a lender receives the application of credit where the repayment ability of the applicant is assessed, with other necessary information.

What Is A Credit Application In Business?

A credit application in business is an application that is filed by the borrower and submitted to a credit lender. It is basically for the purpose of business, therefore, termed as a credit application for a business.

Does A Credit Application Hurt Your Credit?

A credit application usually does not hurt your credit, although in case of any inquiry it may get affected in case of hard inquiry, as well as in delay of loan repayments and others.

Conclusion

Thus, by now we know What is a credit application form? What type of information does a credit application include? Credit application examples with the Credit application process, and also know about What is a trade reference on a credit application? What is a credit grantor on a rental application? What is a credit application for a car? And What is a credit application for a company? The application for credit or a credit application form is typically an application form that is submitted for extension of credit. The credit applications are filed by the respective borrower or the credit taker and submitted to a credit lender. So, we have understood What is a credit application form?

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What Is A Credit Application Form?

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