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The Importance of a Commerical Credit Application

  Sue McConnachie   |     Oct 31, 2017

Gathering thorough background information prior to engaging with a business or individuals, whether it is a prospective client, supplier, tenant, franchisee, dealer/operator, or other potential business partners, can help you make better decisions.

The accumulated information will tell you whether they are a quality candidate, whether they will be able to fulfill the necessary requirements and obligations and, most importantly, whether or not you should work with them. 

To collect this information, you must first have these potential business partners fill out a credit application.

A credit application acts as both a data gathering tool, so that you can more easily conduct your background check, as well as a contract, specifying the mutual rights of the parties involved, as well as individuals you will be working with.

When completing a credit application, your applicant can expect to see the following information requirements: 

  • Full Legal Name of the Business
  • Operating Name
  • Address of the Company
  • Contact Information – email, phone numbers, etc.
  • Name and Information for Contact Person
  • Bank References
  • Landlord References
  • Credit/Supplier References
  • Right to verify data on the application
  • Signatures of authorized individuals

Depending on the purpose of your credit application, additional information will be gathered to ensure you have the clearest and most valuable picture possible.

Once your prospective candidate has completed their credit application, it is now time to verify the information and uncover any negative history that could signal future problems.

Verifying the information on a credit application takes time, but ensuring that is as accurate and complete as possible can help expedite the process.

Once you have ensured the application has been completed in full you will want to verify bank information, such as account balances, history of repayment and any NSF activity, as well as reach out to references to confirm the relationships and ensure everything is well and good.

If you uncover any false or questionable information, it could be a valid reason for not doing business with the candidate. 

At Quality Credit, we have over 25 years of experience in a number of industries which gives us the ability to provide unparalleled, high-quality reports and reporting services to businesses in Canada and Internationally.

If you would like us to screen a prospective business partner, tenant, dealer/operator, or franchisee, contact us today. We will help you get the information you need quickly.

Pre Employment Candidate Screening Solutions

By Sue McConnachie

Quality Credit Reporting is North America’s premiere credit reporting agency, committed to providing unparalleled, high-quality reports and services.

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