The credit application is often a prospective customer’s first true interaction with your company. Prior to that, they are working with your salesperson who paints the idyllic picture of what the company aspires to be. The credit app is the first look under the hood at what is really going on.
Your credit application should impress your customer.
Is it still a PDF? Or worse, does your sales rep hand over a paper form with crumpled edges or coffee stains?
Is your customer constantly on the go (e.g. contractor, restauranteur) where a mobile friendly webform they can complete on their smartphone would be so much easier?
Ask for what you absolutely need. Not what you might need 10% of the time. No one likes filling out forms. The credit app is too often a critical bottleneck in customer onboarding. Make it easy – not overbearing.
Do you set expectations on how long the application process should take? If not, you should. Today, buyers are unsure if you have the processes and technology to make decisions in an hour, or if you still need five days to call and hear back from all their references. The variance from supplier to supplier is that stark. Be honest and do not overpromise.
Your credit application sets the tone.
An experienced credit manager once told me “credit is a privilege, not a right”. It is something you earn and something you must maintain. By requiring an application, you are demonstrating to your new client that you are happy to extend terms to creditworthy customers… but only to creditworthy customers.
It is a signal that you take credit and collections seriously. That n30 means n30.
A signed credit application also doubles as your master contract. Make sure you have the right key elements to protect the company. See my separate article on this topic, here.
With the right technology in place, Trade Confidence helps its clients with professional credit applications that wow the customer, protect the company, and drive sales.
Get in touch, and let us help you make the right first impression with your customers.