Customer Credit Policy Template

A credit application is a document the applicant wrote. The revenue figure, the years in business and the three trade references are claims, and a scorecard that reads a limit off the revenue band has scored the claims. This pack sorts every fact into self-reported, independent and observed, then verifies each reference against the legal entity that will actually be invoiced rather than the trade name on the letterhead. That one check is usually worth more than the rest of the file.

On the illustrative distributor in the sheets, an applicant asked for 150,000.00 at net 45 against a claimed revenue of 14,200,000.00. The buying entity turned out to be nineteen months old, and two of its three references confirmed they invoice an affiliate with a different EIN. One reference verified against the buyer, high credit 48,000.00. Median verified high credit times the tier multiplier of 0.50 gives an opening limit of 24,000.00 at net 30, and names the 126,000.00 gap instead of hiding it.

The second half is the calendar. Every limit leaves with a next-review date and eight triggers that override it. The register carries the notification date, because Regulation B expects a business credit applicant to hear the action taken within a reasonable time and sets a retention floor. Three of fourteen limits here are past due, carrying 288,900.00, and the account at 98.9 per cent of its ceiling sits behind the oldest decision in the book. Chase what already shipped in the AR collections pack.