Business Credit Application Form???

Jubbles

Hi there, We are in the process of setting up our own business and have been requested by suppliers to complete a 'credit application form', as to see if they can place us on say, 30 day credit terms.
I am wanting to send a form out to our customers too, for bank details and contact info to put into my Sage accounting system, but am struggling to find a free downloadable one by googling it.
I dont really want to devise my own, especially if I miss things out and look unprofessional!
Wondering if anyone can help?
Many thanks
Michelle x :beer:

WhenIGrowUp...

Hello,

Why not use the info from the ones that you've been asked to fill out to make your own?

lolo06

Hello,

Could i please ask what Business credit is? and does it involve a credit check?

thanks

jexygirl

@lolo most suppliers (that I deal with in my industry or in my exp) require a credit form to be filled in.
This isn't a "credit check" as such.
They usually require references from previous suppliers in order to know that you are good to pay for the stuff you have ordered and be given x amount of time to do so (giving you as a buisness time to sell the product at profit, and then pay up)-
The refs should be suppliers you have previously dealt with and paid on time / have a good relationship with.
Its like references on a cv - will this person be reliable and trustworthy etc.
Ofc if you havent had buisness refs, use people or banks that would vouch for you. Suppliers want to know you are likely to pay your bills.
I think our first buisness, we supplied references from our old mortgage co, plus bank refs and also copies of statements so they could see we paid our domestic bills on time and didn't live in overdraft or whatever.
To the OP the same applies - I assume whatever you are doing is to supply an industry in bulk, hence the need to give them credit terms - you need to have references so you know they are good to pay for what they order from you.
If you are starting up, I would err towards COD but it depends on industry, and I would aim for agreements if there are credit terms, and those terms would be half what I wanted - eg. You want to be paid in 30 days, have your term at 14 or even 7, so you have the right to hassle after a certain period - and you may well need to hassle.
When supplying in bulk, most places will add a month to your terms, before thinking about potentially worrying to pay you.
Its all about cashflow
Jex