credit application letter for business

• B2B Credit Application: The Ultimat...

B2B Credit Application: The Ultimate Guide to Strengthening Customer Onboarding

Table of Content

Key takeaways.

• A business credit application is a formal document that a company submits to a creditor when applying for a line of credit.
• In the past, business credit applications used to be sent in a physical form; however, today, businesses prefer online credit applications as they are more accessible.
• Manual credit applications can be time-consuming and lead to errors in information gathering.
• Automated credit applications can boost your credit management system, speed up customer onboarding, and reduce bad debt with real-time credit risk monitoring.

Introduction 

In the B2B space, most businesses operate on credit; however, this system has its drawbacks. Granting credit without thoroughly assessing customers’ creditworthiness could be risky, especially for mid-sized companies. Just as a car requires fuel to run, a mid-sized business needs a healthy cash flow to survive. A single delinquent account can negatively impact your cash flow. Therefore, businesses must carefully evaluate credit applications from customers to reduce risk.

Credit applications have come a long way from paper applications to online applications, and today, many companies are choosing automated credit application processes to optimize their credit management. 

Continue reading to explore the B2B credit application process, common challenges within it, steps to consider before granting credit, and more. Additionally, you can try out ready-made credit application templates to expedite the customer onboarding process and explore an automated credit application for your business.

What Is a Business Credit Application?

A business credit application is a formal document that a company submits to a creditor when applying for a line of credit. This application provides essential information about the business and its finances, helping the creditor evaluate the company’s creditworthiness and ability to repay the debt. 

What is the purpose of a credit application?

The primary purpose of these credit applications is to compile necessary details from the customer, enabling an evaluation of their financials and gauging the inherent risk associated with extending credit to that particular business. Standard information included in a B2B credit application encompasses the business name, address, nature of operations, duration of business activity, financial specifics like revenue and cash flow, and credit references.

In some cases, the B2B credit application might outline credit terms and conditions, encompassing payment timelines, interest rates, and potential fees or penalties.

9 Key Elements to Create the Perfect B2B Credit Application

Creating the perfect credit application for businesses involves including crucial elements that gather comprehensive information while being user-friendly and efficient. Here are the key elements that you must have in your application:

Date of application: Specifying the date is essential to determine when the agreement begins.

Business information section: Provides basic identification details necessary to establish the identity and legal entity of the business.

Legal name of the business 

Business address (headquarters and any additional locations) 

Contact information (phone number, email address) 

Industry or sector in which the business operates

Number of years in operation

Legal structure (corporation, LLC, partnership, etc.)

Ownership and management details: Helps understand the structure and leadership of the business, providing insight into decision-making and accountability.

Names and titles of key executives and decision-makers

Ownership structure (names of owners, percentage ownership)

Contact information for key personnel

Financial information: Assesses the financial health and stability of the business, including its ability to generate revenue, manage expenses, and meet financial obligations.

Annual revenue

Profit margins

Cash flow statements

Balance sheets

Income statements

Financial projections (if available)

Bank references

Trade references : Offers insights into the business’s payment history and relationship with other suppliers or vendors, indicating its creditworthiness and reliability.

Names and contact information of current or previous trade partners

Duration of the relationship

Payment history and credit terms

Credit request: Specifies the amount and purpose of the credit requested, guiding the creditor in assessing the appropriateness and feasibility of the credit arrangement.

Desired credit amount

Purpose of the credit (e.g., inventory purchase, equipment financing)

Proposed repayment terms (length of the credit period, interest rates)

Legal and authorization section: Ensures that the information provided is accurate and authorized by a responsible party within the business, mitigating the risk of fraud or misrepresentation.

Signature of an authorized representative of the business

Acknowledgment of terms and conditions

Authorization for credit checks and verification of information provided

Additional documentation requested: Supplements the application with supporting documents that provide further context and verification of the business’s identity, legality, and financial status.

Business licenses or permits

Tax identification number (TIN) or employer identification number (EIN)

Articles of incorporation or partnership agreements

Personal financial statements of key executives or owners

Instructions and guidance: Helps the applicant understand the purpose of each section and how to complete the application accurately, reducing errors and delays in processing.

Clear instructions on how to complete the application

Explanation of each section and the purpose of the information requested

Contact information for assistance or inquiries

4 Expert Tips To Create a Successful Credit Application

There is nothing better than first hand experience to solidify your business credit application. So, we have brought you some tips straight from our experts to ensure you have the best credit application process for your business. 

Privacy and data security compliance : Ensure compliance with data protection regulations and assure the security of sensitive information provided by the business. This demonstrates the creditor’s commitment to protecting the confidentiality and security of the applicant’s sensitive information, building trust, and compliance with data protection regulations.

Ensure scalability and flexibility in credit application process : Design the application to accommodate potential growth or changes in the business’s needs over time. This allows the application to accommodate possible changes or growth in the business, ensuring that the credit arrangement remains suitable and sustainable over time.

Utilize a user-friendly format: Present the application in a clear, organized, and easy-to-understand format to facilitate completion by the applicant. This enhances the applicant’s experience by presenting information in a clear, organized manner, reducing confusion and streamlining the application process.

Have a robust review and approval process: Outline the steps involved in reviewing and approving the credit application, including estimated timelines and communication channels for updates or inquiries. This sets expectations regarding the steps involved in evaluating the application, providing transparency and accountability in the decision-making process.

Manual Credit Application Process Challenges

The world is moving rapidly today, and this means we have to keep evolving our processes to more efficient methods if we want to keep up. 

Document management and verification are key challenges within the credit application process. The complexity of evaluating diverse financial documents and references can lead to delays and inaccuracies in the decision-making process. This challenge becomes particularly pronounced when handling a large number of credit applications. Here are some significant challenges:

Time-consuming – Manual credit application processes can be time-consuming, especially if companies have to manage a large volume of applications. This can lead to delays in credit decisions, which can impact business operations and customer relationships.

Inconsistent credit risk evaluation – Manual processes can lead to inconsistent assessment of credit applications, as different credit analysts may apply different criteria or weigh factors differently. This can lead to bias and result in inaccurate credit decisions.

Data entry errors – Manual data entry can result in errors, such as typos or transposed numbers, impacting credit decisions. These errors can also be time-consuming to correct and can delay credit decisions.

Limited data analysis – Manual processes can limit the amount of data analysis that can be performed, as analysts may not have access to all the information they need or may not have the tools or resources to analyze data effectively.

Inadequate credit monitoring – Manual application processes can make it challenging to monitor credit risk effectively, as analysts may not have timely access to information about changes in a customer’s credit profile or payment behavior. This can lead to missed opportunities to identify potential credit problems early on and take appropriate measures to mitigate risk.

These challenges can result in inaccurate credit decisions, delays in credit decisions, and increased credit risk. Amidst these challenges, the need for a streamlined and automated credit application process becomes evident. Transitioning to an automated digital solution can help B2B companies mitigate these obstacles and enhance their credit risk management strategies.

The Power of Automation in Business Credit Application Processing

Automation in the credit application process refers to the use of technology and software systems to streamline and expedite the various stages involved in assessing, approving, and managing credit applications. This automation entails leveraging advanced algorithms, data analysis, and digital workflows to replace manual tasks and decision-making processes traditionally performed by humans. The adoption of automation in credit application processing offers numerous benefits for both creditors and applicants, revolutionizing the efficiency, accuracy, and overall effectiveness of the credit approval process.

Benefits of an Automated Credit Application

Automating the credit application process offers a wide range of benefits for both creditors and applicants. Let’s explore.

Enhanced efficiency : Automation streamlines the credit application process, reducing manual tasks, paperwork, and processing time.

Improved accuracy : Automated systems ensure consistent data collection, validation, and analysis, minimizing errors and discrepancies in applicant information. This leads to more accurate credit decisions and reduces the risk of fraudulent or incomplete applications.

Cost savings: By eliminating manual labor and reducing administrative overhead, automated credit application processes result in cost savings for creditors. They require fewer resources to manage and process applications, leading to increased operational efficiency and lower overhead costs.

Improved customer experience : Automation provides a smoother and more streamlined experience for applicants, with faster response times and more straightforward communication throughout the application process. This enhances customer satisfaction and loyalty, fostering positive relationships between creditors and applicants.

Increase in scalability: Automated systems are scalable and can handle a large volume of credit applications without sacrificing speed or accuracy. This scalability allows creditors to efficiently manage fluctuations in application volumes and accommodate business growth without additional strain on resources.

Improves regulatory compliance : Automated credit application systems can incorporate regulatory requirements and compliance checks into the application process, ensuring adherence to legal and industry standards. This reduces the risk of non-compliance penalties and enhances regulatory oversight and reporting capabilities.

Access to data analysis and insights: Automated systems generate valuable data and insights from credit application data, including trends, patterns, and performance metrics. This data can be used to optimize processes, identify opportunities for improvement, and make strategic decisions to drive business growth.

Effortless integration: Automated credit application systems can integrate with other enterprise systems, such as customer relationship management (CRM) software, accounting systems, and loan origination platforms. This integration enables seamless data exchange and workflow coordination, improving overall operational efficiency and collaboration.

By leveraging technology to streamline and optimize credit application processes, creditors can achieve greater productivity, profitability, and competitiveness in the marketplace.

Recommended reading: How Mosaic Accelerated Customer Onboarding by 56% & Saved 40% in FTE Costs with Automated Credit Management

How HighRadius Can Help to Automate Credit Application Processing 

HighRadius offers innovative AI-powered credit management software designed to revolutionize the way businesses manage credit applications. With a specific focus on online credit applications , our software harnesses the power of artificial intelligence and machine learning to automate and optimize the entire credit application lifecycle. 

With real-time credit risk monitoring , you can receive alerts for any changes in your customers’ credit profile and make data-driven credit decisions from unlimited credit reports. Our software integrates with your ERP system and can start monitoring your customers in just 30 days.

We offer configurable scoring models and approval workflows that can be customized based on geography, customer segments, business units, and other factors. You can fast-track credit approvals through complex corporate hierarchies, making the credit application process more efficient and streamlined.

Our highly configurable online credit application allows you to onboard customers across the globe with multi-language, customized credit applications embedded on your website. You can automatically capture financials, personal guarantees, and check bank references, reducing the need for manual data entry.

Our software also automatically extracts credit data from over 40+ global and local agencies, including credit ratings, financials, and credit insurance information. You can configure the auto-extracted data in your preferred currency, making it easier to analyze and interpret.

With AI-based blocked order management, you can auto-predict blocked orders based on the customers’ credit limit utilization and payment history. You can leverage AI-based release or partial payment recommendations for faster credit decisions, reducing the need for manual intervention.

Our software seamlessly integrates with collections, payments, and deductions, allowing you to share credit scores and risk analysis with collectors, review collectible amounts, calculate adjusted credit exposure, and dynamically update credit exposure leveraging payment and dispute information

HighRadius AI-based Credit Risk Management Software simplifies the credit application process, mitigates risk with real-time credit visibility, and manages global portfolios through comprehensive workflows. 

By partnering with us, you can streamline your credit application process, reduce manual interventions, and ultimately provide a better customer experience. 

Read about how Chevron Phillips achieved 61% faster customer onboarding by adopting our credit management software.

1. What are the types of credit application forms? 

Types of credit application forms include consumer credit applications for personal loans or credit cards, commercial credit applications for businesses seeking trade credit, and mortgage loan applications for real estate purchases.

2. What are some tips for determining creditworthiness?

Assess factors like credit history, income stability, debt-to-income ratio, payment history and verify employment and review assets. Consider credit scores and past financial behavior to gauge creditworthiness accurately.

3. How can a business credit application form help mitigate risk?

A business credit application form helps mitigate risk by gathering essential information about potential clients, enabling thorough assessment of their creditworthiness. It allows businesses to evaluate factors like financial stability, payment history, and credit utilization, aiding in informed decision-making and reducing the likelihood of default or late payments.

4. What are the steps of the credit application process?

The steps of the credit application process typically include submission of application, verification of information, credit analysis, decision-making, approval or denial, and establishment of credit terms.

5. What are the red flags on a credit application?

Red flags on a credit application include inconsistent information, gaps in employment history, high debt-to-income ratio, recent delinquencies or bankruptcies, and frequent changes in residence or contact information.

6. Why do we need a credit application?

A credit application is essential for assessing the creditworthiness of potential customers or clients, mitigating risk, establishing credit terms, and ensuring responsible lending practices. It helps businesses make informed decisions about extending credit and managing cash flow effectively.

7. What happens when you submit a credit application?

When you submit a credit application, the lender will review your application to assess your creditworthiness and ability to repay the loan. They will typically check your credit report, income, employment history, and other financial information to make a decision. Once the lender has reviewed your application, they will either approve or deny your request for credit.

8. How long does it take for a credit application to be reviewed?

Generally, it can take anywhere from a few days to a few weeks for a credit application to be reviewed and a decision to be made. However, with the use of automated credit application processing systems, lenders can drastically reduce the time it takes to review credit applications and provide faster, more efficient service to customers.

9. What are quick steps to consider before granting credit? 

Follow these structured steps to make an informed decision: Create a credit policy: Establish a clear policy to outline terms and agreements. Perform a credit check: Review the customer’s financial background for insights. Sign an agreement: Formalize the commitment to payment. Set credit limits: Align limits with credit scores for reduced risk

10. What is an example of business credit?

An example of business credit is a trade credit arrangement where a supplier allows a business to purchase goods or services on credit terms, such as net 30 days, allowing the business to pay for the purchases later after receiving the goods or services.

11. What is the difference between B2B credit applications vs. B2C credit applications?

B2B credit applications involve businesses extending credit to other businesses, focusing on trade credit terms and commercial financial information. B2C credit applications pertain to businesses offering credit to individual consumers, emphasizing personal credit history and consumer financial behavior.

12. What’s Included in a Business Credit Application?’

• Business Information: Company name, address, contact details, and legal structure.
• Financial Data: Revenue, profit margins, assets, liabilities, and credit history.
• Trade References: Details of previous credit relationships with suppliers or vendors.
• Ownership Details: Names, titles, and ownership percentages of company principals.
• Industry Sector: Description of the company’s industry, market position, and competitive landscape.
• Bank Information: Bank account details and references.
• Tax ID: Business tax identification number.
• Purpose of Credit: Intended use of credit and desired credit limit.
• Guarantees: Personal guarantees or collateral provided to secure credit.
• Signature: Authorization and consent for credit checks and terms acceptance.

Related Resources

What Is a Transferable Letter of Credit? Everything You Need to Know

The Fundamentals of Credit Management & Control: What is It & How Does it Work

13 Must-Ask Interview Questions for Hiring Top Credit Analysts

Streamline your order-to-cash operations with highradius.

Automate invoicing, collections, deduction, and credit risk management with our AI-powered AR suite and experience enhanced cash flow and lower DSO & bad debt

Please fill in the details below

Get the hottest Accounts Receivable stories

Delivered straight to your inbox.

• Order To Cash
• Collections Management
• Cash Application Management
• Deductions Management
• Credit Management
• Electronic Invoicing
• B2B Payments
• Payment Gateway
• Surcharge Management
• Interchange Fee Optimizer
• Payment Gateway For SAP
• Record To Report
• Financial Close Management
• Account Reconciliation
• Anomaly Management
• Accounts Payable Automation
• Treasury & Risk
• Cash Management
• Cash Forecasting
• Treasury Payments
• Learn & Transform
• Whitepapers
• Courses & Certifications
• Why Choose Us
• Data Sheets
• Case Studies
• Analyst Reports
• Integration Capabilities
• Partner Ecosystem
• Speed to Value
• Company Overview
• Leadership Team
• Upcoming Events
• Schedule a Demo
• Privacy Policy

HighRadius Corporation 2107 CityWest Blvd, Suite 1100, Houston, TX 77042

We have seen financial services costs decline by $2.5M while the volume, quality, and productivity increase.

Colleen Zdrojewski

Trusted By 800+ Global Businesses

Sample Credit Request Letter To Supplier: Free & Effective

In this article, I’ll share a step-by-step guide on how to write a persuasive credit request letter, including tips from my personal experience and a customizable template to get you started.

Key Takeaways

• Understand the Purpose : Learn why and when to write a credit request letter to a supplier.
• Personal Experience Tips : Gain insights from real-life examples and personal advice.
• Step-by-Step Guide : Follow a detailed guide to craft your letter effectively.
• Customizable Template : Use a provided template to easily create your own letter.
• Engagement Request : Share your experiences and tips in the comments section.

Understanding the Purpose

A credit request letter to a supplier is a formal way of asking for payment terms that allow you to purchase goods or services now and pay for them later. 

This can help you manage your cash flow more effectively, especially if you’re dealing with seasonal fluctuations or waiting on receivables.

Step-by-Step Guide to Writing a Credit Request Letter

Step 1: prepare your information.

Before you start writing, gather all necessary information about your business and the supplier. This includes your business name, contact details, the history of your transactions, and any other relevant details.

Step 2: Start with a Professional Greeting

Address the letter to a specific person if possible. Use a formal salutation like “Dear [Name]” to start your letter on a professional note.

Step 3: Introduce Your Business and Intent

Trending now: find out why.

Begin with a brief introduction of your business and the purpose of your letter. Clearly state that you are requesting credit terms.

Step 4: Provide Justification

Explain why you are seeking credit terms. Be honest and transparent about your reasons, whether it’s for managing cash flow, expanding your business, or other reasons.

Step 5: Reference Past Transactions

If you have a history with the supplier, mention it. Highlight your timely payments and reliability to strengthen your request.

Step 6: Detail Your Request

Specify the credit terms you are seeking, such as the payment period or credit limit. Be realistic and fair in your request.

Step 7: Assure of Future Business

Emphasize your commitment to maintaining a long-term relationship with the supplier. Assure them of your future business and timely payments under the new credit terms.

Step 8: Provide Financial Information

If necessary, include relevant financial information that supports your creditworthiness, like recent financial statements or references.

Step 9: Close Professionally

Conclude the letter by thanking the supplier for considering your request. Include a call to action, inviting them to discuss the request further.

Step 10: Include Your Contact Information

End with your name, position, company, and contact details. Offer to provide additional information if needed.

Personal Experience Tips

• Be Concise : Keep your letter succinct yet informative. Avoid unnecessary details that might detract from your main points.
• Maintain Professionalism : Even if you have a casual relationship with the supplier, keep the tone professional and respectful.
• Follow Up : Don’t hesitate to follow up with a phone call or email if you haven’t received a response within a reasonable time frame.

Sample Credit Request Letter To Supplier Template

[Your Name] [Your Position] [Your Company Name] [Your Company Address] [Date]

[Recipient’s Name] [Recipient’s Position] [Supplier’s Company Name] [Supplier’s Company Address]

Dear [Recipient’s Name],

I am writing to express our interest in establishing credit terms with [Supplier’s Company Name]. 

As [Your Position] at [Your Company Name], I have had the pleasure of doing business with you for [duration], and we are keen to continue and deepen this relationship.

Our request for credit terms is driven by our desire to manage our cash flow more efficiently and to align our payment cycle with our revenue stream. 

We believe that a credit arrangement would be mutually beneficial, enabling us to maintain our purchasing volume, even in our off-peak season.

We have always valued the quality and reliability of your products/services and have consistently met our payment obligations on time. 

We are interested in discussing a credit term of [specific credit terms], which we believe reflects our history and future potential as your client.

We are committed to maintaining a strong and reliable partnership with [Supplier’s Company Name] and are confident in our continued business dealings. 

Please feel free to contact me directly at [Your Phone Number] or [Your Email] to discuss this request further.

Thank you for considering our request. We look forward to your positive response and to continuing our successful partnership.

[Your Name] [Your Position] [Your Company Name]

Engage with Us

Share your experiences and tips in the comments below. We’d love to hear how you’ve navigated credit requests and any lessons you’ve learned along the way!

Related Posts

• Request Credit Term from Supplier Email Sample
• Simple Payment Request Letter: Free & Effective
• Sample Letter to Reduce Payments: Free & Effective

Frequently Asked Questions (FAQs)

Q: How do I effectively request a credit term extension from a supplier?

Answer: In my experience, it’s crucial to be upfront and honest. I always start by expressing appreciation for our ongoing business relationship. Then, I clearly explain why the extension is needed, providing specific details. 

It’s important to reassure them of your commitment to honoring the new terms and propose a realistic timeline. For example, I once requested a 30-day extension due to unexpected cash flow issues and offered a detailed payment plan to demonstrate my reliability.

Q: What should I include in a credit request letter to a new supplier?

Answer: When I approached a new supplier for credit, I made sure to include essential details. I introduced my business, provided financial statements, and references from other suppliers to establish credibility. 

I clearly stated the credit terms I was seeking and how it would benefit our mutual business relationship. Also, I emphasized our potential for long-term collaboration, which helped in securing favorable terms.

Q: How can I negotiate better credit terms with a long-term supplier?

Answer: Negotiating better terms requires a blend of diplomacy and assertiveness. I always start by reviewing our payment history to highlight our reliability. 

Then, I set up a meeting to discuss our continued partnership and future plans. I propose new terms that would benefit both parties, like extended payment periods or increased credit limits, backed with data on how it can improve our order volume and regularity.

Q: Is it appropriate to use email for a credit request letter?

Answer: Yes, email can be an effective medium. I’ve used it successfully, ensuring my message is professional and concise. 

However, I always follow up with a phone call or a face-to-face meeting to add a personal touch and discuss any concerns they might have. This approach has often helped me in getting a positive response more quickly.

Q: How do I handle rejection of a credit request from a supplier?

Answer: Rejection can be a learning opportunity. I always ask for specific reasons and if there’s room for negotiation. Understanding their concerns helps me to adjust my request or improve certain aspects of my business. Sometimes, 

I’ve even offered alternative solutions like partial credit or shorter payment terms as a stepping stone to build trust.

Related Articles

Personal loan request letter sample: free & effective, request letter for working capital loan: the simple way, personal loan paid in full letter sample: free & effective, sample letter to bank requesting extension of time for loan payment: free & effective, ask someone for money in a letter sample: free & effective, business loan request letter sample: free & customizable, 2 thoughts on “sample credit request letter to supplier: free & effective”.

I found your page very helpful. Thank you for your guidance

Thank you so much for your kind words! I’m thrilled to hear that you found the page helpful.

Leave a Comment Cancel Reply

Your email address will not be published. Required fields are marked *

A Guide to Credit Applications for Business Owners

A guide to credit applications for business owners that includes what lenders ask for, what to do if you are denied, and how these impact your credit score. Learn more now.

Download Template

Fill the form below to download this template

Thank for you submitting the information.

Click below to download template.

Calculating Stripe fees for customer payments is easy with our calculator. Enter the payment amount to calculate Stripe's transaction fees and what you should charge to receive the full amount.

Our calculations are based on Stripe's per-transaction fees of 2.9% plus $0.30.

Calculate how much you’ll pay in Square fees for online, in-person, and manually-entered payments.

Enter your loan information to get an estimated breakdown of how much you'll pay over the lifetime of your loan.

PayPal fees can be confusing. Our calculator helps you understand how much you’ll pay in fees for common transaction methods.

rowing your business requires capital. While you can rely on self-funding to get your organization started, at some point, you'll likely need financing to purchase equipment, hire new staff, or build up inventory. When that time comes, you might decide to apply for business credit.

Various funding options are available for growing organizations, including loans and credit cards. To access them, you must complete a credit application for business with your chosen financial institution. The credit application details information about you and your company, which the lender will review when deciding to approve or deny credit.

What is a business credit application?

A credit application for a business account is a form used to initiate a request for financing from a financial institution. It's one tool that lenders use to evaluate a company's fitness for financing.

Completing a credit application form for business financing tells the bank you need money to support your company's operations. Typically, the application asks for key details about you and the business, such as contact information, industry sector, and how much money you want to borrow. The lender will use the details you provide to pull a business credit report and possibly a personal one, depending on your company's entity type.

Some lenders allow you to submit an online application, but you can also schedule an appointment at a local banking branch if you prefer one-on-one assistance. Typically, you'll receive a credit decision within a few business days — and sometimes even immediately, depending on the financial institution.

Depending on the lender's policies, loan type, and amount borrowed, you may need to submit additional information to support your business credit application. Examples of additional information a lender may request include your business plan, recent financial statements, tax returns, and financial forecasts.

If you receive approval for your loan, you'll get access to your new funds quickly via a designated bank account or a business credit card. However, if the financial institution denies funding, it will explain why in a written letter you'll receive after their evaluation.

What do lenders ask for in a business credit application?

Credit applications for businesses aren't standardized, so the questions you encounter will vary from lender to lender. The extent of the application will also differ based on the amount you apply for and the loan type. It stands to reason that the application process for a $5,000 vendor line of credit will likely be less complex than a request for $5 million to renovate your business office.

That said, here are a few questions you'll probably encounter when you apply for business credit.

Contact information

A lender will want to know the name of your company and where it's located. Identification details help them request business and personal credit reports, and it also tells them where to send the monthly bill if they approve your application.

Contact information you may provide includes:

• Business name
• Owner name and address
• Entity structure
• Employer identification number (EIN) or owner's Social Security number
• Business and personal phone number
• Email address

You likely know your company's basic details by heart, so providing them shouldn't be too hard.

Market sector and industry details

The lender will want to know what your business sells and what market sector you're in. Learning the basics about your company helps them understand why you need financing and how it will benefit your organization.

Expect questions about the length of time your company has been in business and your target customer base. A lender may also ask about vendor relationships, inventory (if you have any), and the number of employees you have.

Typically, details about your company operations and market sector are included in your business plan. The bank may request to review your business plan, so preparing it before starting a credit application is a good idea. Your business plan doesn't need to be the next great American novel—a few pages will usually suffice for a growing organization.

Trade references

Some lenders will include a field requesting the name and contact information of any suppliers or vendors your company does business with. If you have an existing relationship with a supplier—especially one that involves a credit line—including it in your credit application can demonstrate your company's ability to stay on top of payments.

Expect the financial institution to request the name of your suppliers, their address, a point of contact, and phone numbers. Keep in mind that not every vendor reports their client's payment history to credit reporting agencies, so the lender may need to reach out directly for a reference.

Company financial statements

A lender is unlikely to approve a request for credit if they don't believe your business can stay on top of payments. So, they'll want to review your company's financial statements to see how much revenue you earn and whether there's enough income to support ongoing debt repayments. They'll also evaluate your business's outstanding debt, such as loans and credit cards, to determine if the company is overextended.

Some lenders may request audited financial statements depending on the size and complexity of your loan request. Other financial institutions may be happy with statements a local accounting firm reviews. You may also need to provide financial projections and copies of your recent business tax returns.

How a lender uses a credit report and score in business loan applications

Once you finalize your application and submit all the required documents, the lender will start the evaluation process. It will ensure all the details in your application are accurate and may request additional details if necessary.

The lender will pull your business credit report (if there is one) and may request a copy of your personal credit report. A business credit report is similar to a consumer credit report. It will list identifying information about your company, as well as open and closed credit accounts for recent years and payment history.

Along with your credit report, the lender may check your business credit score. The credit score it uses may be the FICO Score model or a different scoring model of its choosing. Typically, the higher your company's credit score is, the more likely you'll receive an approval and the more favorable your credit terms will be.

A high credit score may result in an automatic approval with some lenders. If your application requires additional review, it will pass to the financial institution's underwriting team, who will perform a more detailed assessment. The underwriter's objective is to determine whether the risk of issuing a loan is worth the potential return to the lender. If the underwriter decides the loan is too risky, they may provide you with a lesser loan amount or deny the application altogether.

How to handle a business credit denial

A denial of business credit can be very frustrating. However, you may still be able to obtain a loan through another lender or apply for a different financing option that's more suitable for your organization.

Start by understanding the reasons for the denial. You'll likely receive a short letter stating basic reasons for the denial, such as a high debt-to-income ratio. If the rationale doesn't make sense to you, schedule an appointment with a lending specialist for clarification.

Next, address any issues that are problematic for lenders. For instance, if customers aren't paying you quickly enough to meet the lender's standards, tighten up your company's account receivable policies.

If a low credit score is the problem, take action to improve it. Learn the factors that impact your credit score, such as too much debt or missed payments, and correct them.

How applying for credit impacts your credit score

The short answer: It can.

Applying for a business loan or credit card may result in a hard pull of your credit report—regardless of whether the lender approves you. The hard pull may decrease your credit score by a few points. If your credit score falls into the average or poor credit bucket, those few points can make a difference in whether other lenders will approve you for a loan.

To minimize the impact of credit inquiries on your personal or business credit report, understand the lender's requirements before you submit an application. Ask them what they require for approval and what credit score typically qualifies for a loan. You can then ask the consumer or business credit reporting agency for a copy of your credit report and score to assess the likelihood of obtaining credit. If you don't meet the lender's general requirements, shop around to see what other credit products you might qualify for.

Novo can help with your small business financing needs

Obtaining funding for your business can help you expand, support current operations, or provide an extra cushion if needed. At Novo, we offer up to $75,000 in merchant cash advances with a simple 10-minute application process. Learn more about our financing opportunities , and start your application today!

Novo Platform Inc. strives to provide accurate information but cannot guarantee that this content is correct, complete, or up-to-date. This page is for informational purposes only and is not financial or legal advice nor an endorsement of any third-party products or services. All products and services are presented without warranty. Novo Platform Inc. does not provide any financial or legal advice, and you should consult your own financial, legal, or tax advisors.

The Merchant Cash Advance is provided by Novo Funding LLC, PO Box 311092, Miami, FL 33231. Novo is the marketing name for Novo Platform Inc. and its subsidiaries and affiliates. Novo Funding LLC is a wholly owned subsidiary of Novo Platform Inc. Credit and Merchant Cash Advance products and services are offered by Novo Funding LLC. The information and materials contained on this website - and the terms and conditions of the access to and use of such information and materials - are subject to change without notice. Not all products and services are available in all geographic areas. Your eligibility for particular products and services is subject to final Novo determination and acceptance.

Novo is a fintech, not a bank. Banking services provided by Middlesex Federal Savings, F.A.: Member FDIC.

All-in-one money management

Take your business to new heights with faster cash flow and clear financial insights —all with a free Novo account. Apply in 10 minutes .

Sole Proprietorship vs. LLC

Do i need an ein for my llc, a complete overview of business structures, spend less time managing your finances.

Take your business to new heights with faster cash flow and clear financial insights—all with a free Novo account. Apply online in 10 minutes.

More Articles On 

Starting a business, 5 benefits of hiring your first employee, sole proprietorship vs. llc: a complete overview, 4 business lines of credit for startups.

Free, Printable Business Credit Application Template (Plus, How to Use it Correctly)

Download your free, business credit application template.

*This template is intended for informational purposes. All legal documents should be reviewed by an attorney before use, and terms should be defined to protect you in the event of default.  

Download your free, printable business credit application template so you can extend credit to your customers, or just find out what a business credit application looks like.

Business Credit Workshop coaching students get access to hundreds of actual business credit applications used by banks across the US.

Most of the time, we focus on ways to improve credit profiles and obtain business credit. But, many of our readers, members, and students run B2B operations that serve other businesses. So, it’s crucial that we understand the ins and outs of extending credit to our business clients and customers… when the opportunity arises. 

If you offer your business customers the chance to buy now and pay later, you open a portal to attract more high-ticket sales from those that might not otherwise be able to afford a product or service in a single payment. Plus, by extending lines of credit or private tradelines, you can increase total profits by way of interest and fees. 

Or, if you’re just curious about what to expect when you start applying for business credit yourself, this information (and the downloads above) can be helpful.

Here, I provide a breakdown of the essential elements of a business credit application. Finally, I’ll answer some frequently asked questions and provide guidance for new creditors, including options to create online business credit application forms.  

Fundamentals of a Business Credit Application

I. use google forms, ii. use jotform, iii. use your website’s form builder.

• How Should You Ask a Customer to Fill Out a Credit Application?

How to Pull a Business Credit Report From D&B

How to pull a credit report from experian business, how to pull a credit report from equifax business, how to report on-time payments to d&b, how to report on-time payments to experian business, how to report on-time payments to equifax business, how to report on-time payments to creditsafe.

• 3. Enlist a Third-Party App or Platform to Manage Your Credit Program

Now, let’s get cracking.

What is a Business Credit Application? 

A business credit application is a form that enables a registered entity to apply for a line of credit, term loan, revolving tradeline, or a private net 30 account. It collects identifiable information about the business to determine its creditworthiness. 

A business credit application serves dual purposes: 

• Gather personal, business, and financial data about the applicant
• Serve as a contract between the applicant and creditor

A credit application is considered a legal document, as it should ask for the applicant’s signature. Hence, once signed, and if all terms and conditions are properly outlined in the document, it is legally binding. 

Any company that extends credit to their customers needs an application form to weed out those who would not be eligible for any type of financing. 

To make an informed determination whether or not a company is worthy of business credit, you need specific identifying information. 

• Professional Title 
• % Ownership in Business (Most creditors require at least 50%)
• Company Name
• Tax ID or SSN
• Personal Address (Street, City, State, Zip)
• Business Phone Number
• Business Email Address
• Type of Business
• Years in Operation or Business Start Date
• Business Address (Street, City, State, Zip)
• Legal Entity Type (Proprietorship, Partnership, LLC, Corporation)
• State Registered in
• If DBA or Subsidiary, Parent Company Name & Business Start Date
• Name of Principal Responsible  
• Principal’s Address (Street, City, State, Zip) & Phone Number
• Name of any Co-Principal Responsible (optional)
• Co-Principal’s Address (Street, City, State, Zip) & Phone Number 
• Checking Account (Bank Name, Account No., Contact Info)
• Savings Account (Bank Name, Account No., Contact Info)
• Credit Line (Bank Name, Revolving/Term, Account No., Contact Info)
• Contact Name
• Company Address
• Company Phone Number
• Account Age or Account Open Since
• Credit Limit 
• Current Balance
• Amount of Credit Requested
• Total Business Assets
• Total Business Liabilities
• Annual Net Income
• Yes or No: Have Any Officers Filed a Bankruptcy Petition?
• Yes or No: Is Your Company Subject to Any Litigation? (+Explanation)
• Terms of use
• Interest and Fees
• Penalties for Noncompliance
• Additional Forms Required (Articles of Organization, etc.)
• Disclosure of Credit Pull 
• Applicant Full Name
• Legal Business Name
• Applicant Signature & Date Signed
• Company Seal & Date Stamped

Once the applicant has submitted their app– assuming it appears they have what it takes, and that you would extend them credit — you’ll need to verify their information and move through the rest of the process.  

Here’s How to Create an Online Credit Application Form

In place of or in addition to a paper, pdf, spreadsheet, or doc application, you might want to offer your customers the option to fill out an online credit application form(this is super helpful, especially when applicants are not local). 

So, here’s the scoop. There are multiple ways to create online forms, but here’s what I recommend. 

Google Forms has a straightforward user interface and simple design. While it’s not super customizable, it will get the job done, and it’s free for Google Workspace users — both free, personal accounts and business accounts.  

Jotform is another option — super easy to use — that is free for up to 5 forms and 100 monthly submissions. It’s more customizable than Google forms, with integrations with other platforms you might use like PayPal, Google Sheets, Adobe Sign, and HubSpot. It can cost up to $99 per month, depending on your usage  

If you’re already collecting customer information via contact or subscribe forms on your website, you likely have a form builder that you use. You can probably get into your website dashboard and whip something up based on what you’ve learned here. 

There are many other options out there to help you offer an online application — I’ve just found these to be the simplest to use and most reliable.

How Should You Ask a Customer to Fill Out a Credit Application? 

If you’re eager to extend credit to customers — perhaps you want to use your credit offer as a highlight to make more sales — you can include your credit option at checkout (in-person or online) or during the sales process, depending on how your operations run. 

Service businesses might want to mention their credit application in proposals or bids — at the point just before the sale is made or earlier.  

I also recommend that you bookmark or download our trade reference request template and cover letter template (or create your own), because you can share them with your applicants to help them provide you with more information. Then, you can better determine if they meet your requirements for a credit account.

Recommended Reading: Trade References: Learn Everything You Need to Know

Don’t Forget to Do These 3 Things When You Offer Credit to Your Customers

Here are a few tasty reminders with a helping of details for you to munch on. 

1. Do Your Due Diligence and Be Selective

The application form is only the first part of a credit application. If you are going to extend credit to your business customers, it’s so important to make sure that you verify everything that the applicant tells you. 

Double-check credit report information with Dun & Bradstreet (D&B), Experian Business, and Equifax Business. Pull personal credit reports if you’re wary. Call the references applicants list on their app. Be 100% sure that someone is honest and qualified before you trust anyone in a buy now, pay later situation.  

To get a full D&B credit report and PAYDEX Score, visit D&B’s website and select your plan. It will cost from $61.99 to $799 per year, depending on how many reports you will need. 

To obtain an Experian Business credit report, go to Experian’s website , search for the business (be sure to select Other Business), and choose whether you would like a one-time report for $39.95 or $1,495 to $1,995 per year (for anyone who needs more than three reports monthly). 

To receive an Equifax Business credit report, visit Equifax’s website and fill out the contact form on the Small Business Credit Report page to connect with the sales team — they can hook you up with the right plan. 

2. Consider Reporting Payments to Business Credit Bureaus

As a courtesy to your customers and other creditors, consider reporting on-time payments to the business credit bureaus. Doing so will help your customers establish and grow their business credit profile, and can be a selling point that places you ahead of your competitors.  

Furthermore, reporting slow, late, or missed payments help protect other businesses (like yours) from disreputable companies that tend to stiff their creditors on payments. 

So, you might want to consider reporting on-time payments to D&B, Experian Business, Equifax Business, and Creditsafe — this typically requires that you join their trade exchange programs. 

To report account activity to D&B, you must either be a part of their DNBi or PPP programs or join the trade Exchange Program. To sign up for D&B’s Trade Exchange Program, you need at least 300 active credit customers.  

To apply, either visit D&B’s website or call 1-844-201-9144 to speak to your relationship manager. 

Experian doesn’t charge creditors for reporting, but they have requirements such as, members must report a full portfolio monthly. To become an Experian reporting partner, shoot an email to [email protected] .

You can register to report payments to Equifax via the registration page on their website or by calling 1-800-831-5614 (Select option three to speak to the correct department). 

Creditsafe is not the most popular business credit reporting solution, and will never hold more weight than one of the primary bureaus. Still, third-party data continues to become more and more desirable to creditors. So, after you pull an Experian Business or Equifax Business credit report, you might also pull from Creditsafe. 

Why I mention them here , is because you can join their Trade Exchange Program a bit easier than the other bureaus… and they can automate reporting through your accounting software. Here’s how to leverage the program: 

• Claim your company on Creditsafe’s directory
• Login to your Creditsafe account
• Authorize your accounting or ERP software

Many popular accounting tools will easily integrate (Xero, Quickbooks, and Freshbooks, to name a few). If the platform doesn’t integrate with your software, or if you don’t use accounting software, you can still manually report. 

3. Enlist a Third-Party App or Platform to Manage Your Credit Program (At Least Think About it)

If the sole reason you want to offer business credit is to get more high-ticket sales, and you have no desire to earn income from fees and interest, explore your options for third-party credit offers, since they will make your job so much easier. 

Your choices vary greatly and depend on your business offer. For example, check out Affirm , Klarna , and Afterpay to see if your business might qualify to offer customers their buy now pay later terms — if so, they will do everything for you. 

If you do want to manage your credit program, it’s a good idea to explore debt collection offers so that you might outsource that portion of your work (I can almost guarantee you will have to collect on missed payments at some point). 

To extend business credit to your customers, you can use the business credit application template at the top of this page to get started — note that all legal documents should be reviewed by an attorney. And, printable applications are great, but so are online applications. 

If you’re just starting down the path to offering business credit to your customers, remember to do your due diligence and verify everything on the application. Think about reporting on-time payments to business credit bureaus. And, consider enlisting help from third parties (if you can find an offer that meets your needs). 

Do you have a customer or client who didn’t quite meet the mark and got rejected for a line of credit through your program? Invite them to join Business Credit Workshop to learn how to boost their business credit score and obtain up to $100K in business credit in as few as 30 days.

Related posts:

• Business Credit Repair: How to Get Your Business Credit Back on Track 
• The BRRRR Method: A Real Estate Portfolio-Building Blueprint
• Is Biz2Credit Legit? A Complete Review
• Business Car Leasing 101: How to Lease a Vehicle With Your EIN 

Business Credit Blog

· Recommended Resources · Using 30 Day Net Vendors to Build Your Business Credit Score · How to Create a Business Credit “Entity” – Tutorial

Recent Posts

• Sidney Federal Credit Union: NY Business Financial Options
• Credit Repair Cloud Reviews Examined: Is This Offer Legit? 
• Is Carputty Legit? A Complete Auto Financing Review 

· Sign Up for Business Credit Workshop Online! · Login – Business Credit Workshop Online ·  Forgot Password?

· Affiliates

Financing | What is

What a Small Business Letter of Credit Is & How It Works

Published February 22, 2024

Published Feb 22, 2024

REVIEWED BY: Tricia Jones

WRITTEN BY: Andrew Wan

This article is part of a larger series on Business Financing .

• 1 How It Works
• 3 When It’s Required
• 4 Pros & Cons
• 5 How To Get It
• 7 Bottom Line

A letter of credit is issued by a bank or other financial institution as a way to guarantee payment in the event the customer does not pay. This can be especially useful when conducting business internationally or when making large complex purchases where failure to receive payment could result in cash flow issues. Companies that have concerns about receiving timely payments from customers and that want to ensure no interruptions to company operations as a result of nonpayment from customers can request a small business letter of credit.

We recommend considering Bluevine from our list of the best cash flow lenders. It offers a line of credit up to $250,000 that you can use to draw funds on an as-needed basis. You pay only when using the credit line as there are no fees to open, maintain, or close the account.

Visit Bluevine

Key takeaways

• With complex, high-risk, or large purchases, a letter of credit can facilitate a smooth transaction between a buyer and seller by providing the seller with a guarantee of payment.
• Buyers can request a letter of credit from financial institutions, which usually charge a fee between 0.5% and 1.5% of the transaction amount.
• Different types of letters exist, and terms can often be customized to suit the unique needs of a transaction.
• If a letter of credit is not an option, consider getting financing from other sources, such as loans, to temporarily allow your company to continue operating until you receive payment.

How a Letter of Credit Works

A letter of credit typically may come up as a requirement when a buyer wishes to purchase a product or service from a seller. If the seller needs additional assurance that the buyer will make payment in a timely manner, a letter of credit could be requested. This letter of credit can be issued by a bank, and it will guarantee that the seller will get paid by either the buyer or the bank.

Below are the major steps that illustrate a typical transaction where a letter of credit is requested.

Step 1: Buyer and seller agree to a business transaction.

Before a letter of credit is deemed necessary, a buyer and seller typically must first come to an agreement on the details of a transaction. This can be for the purchase of goods or services. Having the details of the proposed transaction gives the seller more information on whether it might warrant a letter of credit.

Step 2: Seller requests a letter of credit from the buyer.

Once the details of the transaction are finalized, the seller can then determine whether it would want a letter of credit. Some possible factors could include the dollar amount of the transaction, potential impact on the seller in the event of nonpayment, and other risk factors. If the seller would like a letter of credit, it can inform the buyer, who can then take the next steps in obtaining it from a bank or other financial institution.

Step 3: Buyer obtains a letter of credit from a bank or other financial institution.

A letter of credit for small business transactions can be obtained from banks, credit unions, and other financial institutions. To get a letter of credit, these institutions usually go through a review process similar to that of a loan. This is done to ensure that the risk of the buyer defaulting on the payment to the seller will be low, so it must ensure the buyer can demonstrate the ability to afford the payment.

If approved, the bank will issue a letter of credit outlining the details of the transaction and any other terms and conditions.

Step 4: Purchase of services/goods is completed.

Depending on the type of letter of credit issued, funds can be sent directly to the seller to complete the transaction. Otherwise, once the buyer has obtained the letter of credit, it can be provided to the seller with payment to follow at a later date. If this is the case and the buyer subsequently fails to make payment in a timely manner, the seller would receive payment from the bank that issued the letter of credit.

Small Business Letter of Credit Types

Different types of letters of credit exist, and each has its own nuances. The details of your business transaction will determine the type of letter of credit best suited to your needs:

• Commercial letter of credit: As its name suggests, it is used in commercial transactions. This can include those conducted domestically and internationally. With a commercial letter of credit, the issuing bank makes payment directly to the seller.
• Standby letter of credit: The issuing bank will require the buyer to first make payment to the seller. Unlike a commercial letter of credit, the bank only pays the seller if the buyer fails to do so in a timely manner.
• Revolving letter of credit: It is typically used if the buyer and seller have agreed to conduct multiple transactions. This can save time and money from having to apply for a new letter of credit for each individual transaction.
• Traveler’s letter of credit: It is typically an ideal fit for those traveling overseas. This type guarantees that drafts will be honored at specified international banks.
• Confirmed letter of credit: Although unlikely, there’s always the chance that a bank issuing a letter of credit could also default or be unable to honor its agreement. A confirmed letter of credit significantly reduces this risk, as it guarantees that the seller can get paid by its own bank if the buyer and buyer’s bank default.

When a Letter of Credit Typically Is Required

The seller of a product or service can determine the circumstances in which they’d like to get a letter of credit from a buyer. This can be dependent on the characteristics of the buyer, the details of the transaction, or other factors. Below are common circumstances in which a letter of credit might usually be involved:

• The transaction is being conducted internationally: Conducting business overseas can be particularly challenging and complex, especially when factoring in differences in business law. A letter of credit can not only help provide a guarantee of payment, but it can also specify details of how the transaction must be completed to ensure it’s completed more efficiently. Details can include things like when goods must arrive and when payment must be made.
• The transaction is for a large dollar amount: If the transaction being conducted is for a large amount of money or is otherwise more complex, a letter of credit can give the seller peace of mind in knowing they’ll get paid. This can be beneficial to sellers if they must incur significant expenses to fulfill the order, where failure to receive payment could cause cash flow issues.
• The buyer and seller have never conducted business before: Without a track record of doing business, a seller may not know how reliable a buyer is with regard to making timely payments. A letter of credit can give sellers the guarantee of being paid.

Pros & Cons of a Small Business Letter of Credit

How to get a letter of credit.

Getting a letter of credit has many similarities to getting a traditional loan. You’ll need to find a bank that can issue one, submit an application, and provide any requested documentation.

We recommend checking out our guide on how to get a small business loan as we cover common eligibility criteria and documentation requirements. However, keep in mind that the exact criteria may vary slightly depending on the lender you choose.

Wells Fargo is one example of a lender that offers letters of credit. You can apply for a commercial or a standby letter of credit, both of which are secured by deposits you have with the bank. The provider also offers other lending and banking services that you can utilize as a small business owner.

Visit Wells Fargo

Frequently Asked Questions (FAQs)

How long does it take to get a small business letter of credit.

Most institutions can issue a letter of credit within 10 to 14 business days. During this time, the buyer’s qualifications must be reviewed by the issuing bank, which can include a review of its credit, income, and assets.

What does it cost to get a letter of credit?

Buyers must typically pay between 0.5% and 1.5% of the value of the transaction to get a letter of credit. The exact amount can vary depending on the amount and complexity of the transaction, as well as the requested terms and qualifications of the buyer.

Why should I use a letter of credit?

If a buyer ends up not paying for goods or services, a letter of credit ensures that the seller still gets paid by the bank that issued the document. Sellers can get added security with this guarantee, while buyers can secure an agreement on the purchase of a product or service that they might not otherwise have been able to get.

Bottom Line

Different types of letters of credit exist depending on the details of your transaction, but they all serve the primary purpose of ensuring the seller of a product or service will get paid. They are often used in international transactions and in large complex purchases. This can be helpful if receipt of funds is critical to continued business operations.

However, while letters of credit carry many benefits, also consider the downsides, such as the time needed to get one and the fees that may be charged by the issuing bank.

About the Author

Find Andrew On LinkedIn

Andrew Wan is a staff writer at Fit Small Business, specializing in Small Business Finance. He has over a decade of experience in mortgage lending, having held roles as a loan officer, processor, and underwriter. He is experienced with various types of mortgage loans, including Federal Housing Administration government mortgages as a Direct Endorsement (DE) underwriter. Andrew received an M.B.A. from the University of California at Irvine, a Master of Studies in Law from the University of Southern California, and holds a California real estate broker license.

Join Fit Small Business

Sign up to receive more well-researched small business articles and topics in your inbox, personalized for you. Select the newsletters you’re interested in below.

The 2023 Guide to Business Credit Applications [Free Templates]

What Is a Credit Application?

Credit applications act as a background check for businesses to determine the level of risk giving an advance to a customer might pose. If a business provides a customer with a product before performing a credit check or receiving payment, then they expose themselves to the possibility of severe interruptions to their cash flow if the customer breaks their agreement. 

A business credit application can make it easy to collect all the information you need to properly gauge the risk a specific customer poses. It can also help you determine how much credit is appropriate at that time.

B2B Credit Applications vs. B2C Credit Applications

While granting a line of credit for a business-to-business (B2B) relationship is similar to business-to-consumer (B2C), what they’re looking for differs. Typically, when a consumer needs to buy something on credit, it’s for a single item that is slightly more costly than their typical expenses, like jewelry or workout equipment. Since B2C credit transactions are typically non-recurring for a high volume of customers, it makes sense to have a bank handle the requests.

Applying for business credit from a vendor is often done with the intention of building a long-term professional relationship. The customer often intends to use what they purchased on credit to help them make their own sale. They then use the profits from the sale to pay off the advanced credit. These purchases can quickly accrue to be worth hundreds of thousands of dollars. The stakes are much higher than B2C and, as a result, the credit check is more complicated.

Secured vs. Unsecured Credit

There are two approaches a business can take when approving business credit applications: secured and unsecured. A secured line of credit requires the customer to put up an asset as collateral. If the customer fails to honor the agreement, the vendor can seize the asset in lieu of payment.

An unsecured line of credit (ULOC) requires no form of collateral and is based on the customer’s credit history. If they are seen as low risk, then they are more likely to be approved for an unsecured line of credit. This is usually determined by the industry the business operates in and their own internal policies.

What’s Included on Business Credit Applications?

For business credit applications to accurately carry out their function, certain information should always be included:

• Applicant’s contact information: This includes the name of the business, billing/shipping addresses, email and phone numbers, and other relevant details.
• Ownership information: Knowing who the owners and principals of the company are can give added credibility to the company.
• Trade reference information: This includes contact information for someone the applicant has a working relationship with and who can provide insight into the customer’s credit history.
• Annual sales: This data is used to get an idea of the applicant’s income to help find a reasonable credit limit.
• Bank information: This includes account numbers and bank contact details to verify the applicant’s average balance.
• Amount of credit requested: The request is compared against their existing financial records to determine if it is reasonable.
• Date of application: The day the request was submitted can help determine when the term should begin.

A business credit application can be tailored to the specifics of any industry. Here are some business credit application templates you can use in your operations or as inspiration for creating your own:

Steps To Approve a Business Credit Application

After receiving a customer’s credit application form, you’ll need to analyze their information to determine if they qualify for a line of credit and how much that might be. For help with the approval process, apply the following steps.

1. Verify All Required Fields

The first step in reviewing your applicant’s business credit application is to ensure it has been filled out completely and correctly. If the credit application was not clear regarding which fields were optional and which were required, it’s possible the applicant left some blank. There’s also the possibility that the applicant entered their information incorrectly if they misunderstood what was being asked. To avoid this, clearly phrase all instructions on the form so the process won’t be unnecessarily prolonged.

2. Cross-check References

Following up with the applicant’s trade references is an important step in the vetting process. These are the people who are vouching for the applicant based on their past working relationship, helping you anticipate how they will act if given a line of credit. In some instances, an applicant may cite fake references with the hope that they won’t be contacted. Make a point to contact these people early on to avoid potential fraud.

3. Evaluate Credit History

An applicant’s credit report can generally be obtained from organizations like the National Association of Credit Management or Dun & Bradstreet . Use these results to inform your decision on whether or not the applicant is eligible for a line of credit and, if they are, for how much.

You may find that a credit report lacks details about a specific company’s financial history, sometimes only reporting on a small fraction of their spending history. To work around this issue, look for a service like Nuvo that offers instant digital bank references and credit reports on the principals of the company to get a better picture of their spending habits.

4 Tips for Determining Credit Worthiness

Knowing when to issue a line of credit and for how much can be a difficult task if left up to each individual’s judgment. Here are some tips for standardizing the process.

1. Establish a Company-wide Credit Policy

A credit policy defines the standards your company uses to vet an applicant as well as how you collect on overdue accounts. Setting a clear policy helps your employees evaluate applicants from an impartial perspective while giving customers a clear understanding of the criteria they must meet. This can help the credit approval process work more efficiently, reducing the number of questions that might arise along the way.

2. Sign a Contract

It’s important that every involved party is held accountable to their end of the agreement. Have the customer sign a contract to minimize the chances of a dispute in the event they default on their payments. The contract will make it clear what they agreed to and give you recourse for collecting what’s owed.

3. Set Realistic Limits

It can be tempting to give an applicant a greater line of credit than their financial history supports for the sake of earning more of their business. This can lead to problems down the line if they overextend themselves and can’t make payments, interrupting your own cash flow. Setting a realistic credit limit is beneficial for both parties in the long run, since this limit can always be increased down the line if the account remains in good standing.

4. Conduct Periodic Credit Reviews

A customer’s credit isn’t a permanent fixture in their financial history — it’s regularly changing. Just like a business can improve their credit, it can easily get worse. By periodically reviewing existing buyer accounts, you’ll stay updated on any increasing risks before the accounts start defaulting, allowing you to take proactive actions. 

Advances in technology have automated many of these steps, removing some of the tedious aspects from the approval process. Nuvo eliminates much of the back and forth of traditional business credit application processes by taking it digital. By actively syncing information from banks and creditors, business suppliers can have the most up-to-date details with less work.

You may also like

Announcing nuvo.com, 31 accounts receivable statistics for cfos in 2023, what is credit control + 4 tips to tighten credit control measures, 🎉 thank you, please check your calendar for an invitation from our team..

This site uses cookies to deliver and enhance the quality of its services and to analyze traffic.

Business Credit Application Template

Understanding a credit application template.

View the key components of a Credit Application

For business owners, extending credit is a strategic decision that can drive sales and build customer loyalty.

However, doing so also comes with risks.

A Credit Application template serves as a vital tool in this process, providing a structured and thorough approach to assess the creditworthiness of potential clients. Implementing a standardized Credit Application process not only safeguards your business’s financial health but also streamlines your credit decision-making.

What is a Credit Application Template?

A Credit Application template is a crucial document used by businesses to gather essential financial and personal information from clients seeking credit.

This template serves as a formal request for credit, allowing businesses to evaluate the creditworthiness and financial stability of their clients. It outlines the necessary information and terms required for a business to make an informed decision about extending credit. This document is key to establishing clear credit terms and conditions and is instrumental in building a foundation for a healthy creditor-client relationship.

Key Elements in a Credit Application Template

• Client Information - Comprehensive details such as the client's name, address, contact information, and business structure.
• Financial Information - Bank details, financial statements, and credit references to assess the client's financial health.
• Credit Terms - Clearly defined credit terms, including payment deadlines, interest rates, and credit limits.
• Legal Clauses - Conditions that bind the client to the agreement, such as confidentiality and compliance with payment terms.
• Personal or Corporate Guarantee - A clause ensuring repayment, enhancing the security of the credit extended.
• Consent for Credit Checks - Authorization from the client to conduct credit checks and verify provided information.
• Signatures - Space for authorized signatures to validate the agreement.

Other Documents Related to Credit Applications

When drafting a Credit Application, consider including these related documents:

• Credit Policy - Outlines your business’s overall credit granting criteria and procedures.
• Terms and Conditions of Sale - Details the terms under which your products or services are sold.
• Personal Guarantee Forms - For additional security, especially in dealings with smaller businesses or startups.
• Loan Agreement - If the Credit Application leads to a more structured financing arrangement.

Why Use Business in a Box for Your Credit Application?

For over two decades, Business in a Box has been the go-to resource for business owners seeking reliable and professionally crafted legal and business templates. Over the last 20 years, we’ve served millions of entrepreneurs, business owners, CEOs, and managers, in over 190 countries and territories worldwide.

Our extensive library features over 3,000 business and legal documents, and has been developed through a collaboration with industry experts and lawyers.

Business in a Box offers a user-friendly solution for creating your Credit Application with several advantages:

• Professionally Prepared Templates - Ensures that your Credit Applications are thorough, legally sound, and tailored to industry standards.
• Customization - Easily modify templates to fit the unique needs of your business and your clients.
• Time Efficiency - Streamlines the creation process, allowing you to focus on other critical aspects of your business.
• Legal Compliance - Keeps your Credit Application process in line with current financial regulations and laws.

Utilizing Business in a Box for your Credit Application template empowers you to make smarter credit decisions, protects your business from financial risks, and fosters trust and transparency with your clients. Access a range of professionally designed templates in Business in a Box and manage your credit processes more effectively.

Updated in November 2023

Related documents

3,000+ templates & tools to help you start, run & grow your business, all the templates you need to plan, start, organize, manage, finance & grow your business, in one place., templates and tools to manage every aspect of your business., 8 business management modules, in 1 place., document types included.

Ready to automate your AR? Get a personalized demo of Sage AR Automation.

THE ULTIMATE GUIDE TO BUSINESS CREDIT APPLICATIONS FOR CREDIT MANAGERS

Business credit applications are critical to help businesses assess and manage credit risk because they will, if you use them correctly, help you identify companies who you may want to be careful with when extending credit. Most companies don’t use business credit applications and even those who do use them don’t follow up on them after they’re filled out or ask for the additional information required to truly understand the risk involved, are you?

Learn more about business credit applications below, best practices for follow-up, financial information to analyze, and how to manage these important documents for reduced credit risk.

WHAT TO INCLUDE IN A BUSINESS CREDIT APPLICATION

Business credit applications can be as simple or as complex as you’d like. At the very least, they should require the applicant to give you the following information:

• Name of the business, address, phone and fax number
• Names, addresses, Social Security numbers of principals
• Type of business (corporation, partnership, proprietorship)
• Number of employees
• Bank references
• Trade payment references
• Business/personal bankruptcy history
• Any other names under which the company does business

This would be considered a pretty basic credit application, a more comprehensive application will give you a better idea and more confidence in your decision; and that requires more information. For a more complete application, you might want to ask for financial information that will allow you to evaluate the following:

PROFITABILITY

Evaluate the expenses and revenues of the customer, are they making money?

FINANCIAL RATIOS

Run the following financial ratios to help determine the financial health of the potential borrower:

• Debt to equity ratio
• Debt to asset ratio
• Current ratio
• Quick (acid test) ratio
• Operating cash flow ratio
• Working capital ratio

Does the borrower have a healthy cash flow from operations, investing, and financing activities? Their cash flow will impact yours, so you want to make sure they have money coming in.

DEBT LEVELS

Find out how much debt the potential borrower has and decipher how much they can afford based on the other financial information you’ve seen. If they look like are in over their heads, you may want to be careful about offering credit.

INDUSTRY EVALUATION

What is the normal debt/liquidity level for companies similar to this borrower’s size in their industry and how do they measure up?

If you decide you do not want to ask for that financial information on your application, you can always purchase a commercial credit report on the potential borrower which would have all of that information included, but that can get pricey over time. Business credit applications should be used for new customers as well as repeat customers if it has been a long time since you last checked their creditworthiness, or if they are asking you to increase their credit limit.

BUSINESS CREDIT APPLICATION BEST PRACTICES

We’ve all done it, we send out the application which is then filled out and returned, and we don’t follow up the references provided. This is a common and costly mistake that credit professionals everywhere make. Always follow up with trade references provided in the credit application and don’t be afraid to ask the customer additional questions either. Below is a list of things you may want to ask during conversations with the trade references or with your potential borrower themselves:

WHAT TO ASK WHEN YOU SPEAK WITH A TRADE REFERENCE

• Is there a pattern of paying some suppliers on time and some late? Why is this? Is it seasonal?
• Is there chronic delinquency or is it sporadic, are there any patterns?
• Is there a seasonal pattern? (this can be worked around)
• Have they had any bad checks?
• Do they order and/or pay consistently?

QUESTIONS TO ASK THE CUSTOMER DIRECTLY

• Is a poor payment history due to employment issues, a one-time event, a personal reason, etc?
• Is cash or COD acceptable with the customer until or if credit is approved?
• Where is the business going and how long has it been in business?
• Who are their customers?
• Does the customer sell on credit to their customers? Do they have credit risk management procedures in place?
• Does the company have any suits, liens, bankruptcies, U.C.C. filings or judgments against them?

MANAGING CUSTOMER CREDIT APPLICATIONS

Sending, receiving, and organizing important documents like a customer credit application is important to make you know that you have the completed document, when it was completed, and that it is being stored securely. That can be tough when you have so many applications to keep track of and an endless number of other credit management tasks to do; so we’ve made it easy. An automated accounts receivable management tool usually has a document management features that not only allows you to save and organize your customer credit applications, it allows you to:

• Save a template in the system to cut down on time spent creating and editing one.
• Send it to customers and receive the completed document through encrypted emails or through a secure customer portal.
• Manage, store, and share other important documents such as invoices, proof of delivery, time sheets, and other documents.

You can also set up the software to notify you when it has been X days/months/years since a customer has filled out a credit application or since you have run a credit analysis on a customer to make sure your company is always protected against credit risk.

Related Posts

Creating an Efficient Cash Application Process

The New State of Paper in Accounting

Battling Key Accounts Receivable Challenges

Three Ways Accounts Receivable Automation Improves Customer Experience

Great Resignation Preparedness: Why Leveraging Email Automation Means AR Success

Privacy overview.

About Create

Create is a multi-purpose WordPress theme that gives you the power to create many different styles of websites.

• Alternative Dispute Resolution
• Bankruptcy & Restructuring
• Business Services and Commercial Litigation
• Class Actions & Toxic Torts
• Construction
• E-Discovery and Cyber Security
• Governmental Liability
• Labor and Employment
• Product Liability
• Professional Liability
• Real Estate
• Retail and Hospitality
• Transportation
• Nonstop Advocates
• BIRMINGHAM METRO
• JACKSON METRO
• MOBILE METRO

Writing & Reviewing a Credit Application: What You Need to Know

When developing a credit application for customers, it is important to keep in mind that at the point of application, your company holds the leverage in the situation because you can deny their application for goods and/or services. The purpose of obtaining a credit application from a customer is to establish a contractual relationship between your company and the customer. It also gives your company the opportunity to obtain critical customer information, including addresses, phone numbers, employer identification numbers (EIN), Social Security Numbers (SSN), business structures (corporations, limited liability companies, partnerships, etc.), and credit references. This information could prove to be critical if the customer fails to pay, as it will assist you in your lawsuit and collection activities.

Once your credit relationship with the customer has been established, your leverage over the customer will diminish. They may have already secured what was wanted – your goods and/or services – and therefore will be less inclined to provide you with information about their operations.

The structure of your company’s credit application will help to make certain that the customer information you obtain is complete and accurate. While most every credit application contains common fields such as the customer’s name, mailing address, and credit references, you should pay particular attention to the following fields:

1. Customer’s Name

This field seems straightforward, but it can be easy to get misleading information regarding your customer’s name on a credit application. Be sure to refrain from asking for the name of the customer’s company or corporation as it may imply that the customer should use a corporate name even if the customer is not a corporation. Instead, include a checkbox or some other field following the name field to ask if the customer is a corporation, LLC, LLP, partnership, sole proprietor, or other. It may also be helpful to ask if the customer has a website, and if so, have them list a domain.

2. Customer’s Address and Telephone Number

A little bit of extra attention to this field can garner a lot of useful information. Typically, customers will have a physical address and a mailing address as well as a business telephone number and a mobile number. Asking for both addresses and telephone numbers could prove very helpful should you have a hard time getting in touch with the customer later.

3. Customer’s Employer Identification Number (EIN)

Some customers may be unfamiliar with the acronym “EIN” and instead know it as a “TIN.” Asking for their “EIN/TIN” can be helpful in communicating exactly what information you’re looking for.

4. Customer’s Bank Information and Credit References

In this field, you should make sure to ask for all the banks at which the customer has an account, and ask for specific branch addresses. Be sure to get the full account number for each bank account listed by the customer. Additionally, it’s best to ask the customer for at least three (3) credit references. Include fields for the name, address and telephone number for each credit reference. Also include a field that asks for the name of the person at the credit reference to whom your inquiry should be directed.

5. Guarantor’s Name, Address, Telephone, Social Security Number, Etc.

Your company’s credit application should not also be a guaranty agreement. Instead, you should have a credit application and a separate guaranty agreement. By separating the credit application from the guaranty agreement, you remove the risk that the signature line of either the credit application or the guaranty agreement will be executed incorrectly. You also take away the customer’s argument that he or she did not understand the credit application to also be a guaranty agreement. Instead, simply ask the guarantor for the following information:

– Full name, business address and home address (separately) – Business/home/mobile telephone numbers – Social Security Number – Driver’s license number – His/her position with the company that is applying for credit. Do not offer options,       such as president, vice president, or secretary; let the guarantor fill in the blank. – Email address

6. Signature Line

It is difficult to construct a single signature line that is appropriate for all types of business entities; therefore, your company’s credit application may need to have multiple signature lines to accommodate all of the various entities that may submit a credit application. For example, a corporation has certain officers, such as its president or secretary, who are authorized to execute documents on its behalf. A limited liability company, on the other hand, has a certain manager(s) or member(s) who is authorized to execute documents on its behalf. No matter what type of signature line is contained on your company’s credit application, make sure that there is a date field included.

7. Interest and Attorney’s Fees

Make certain that you include language giving your company the right to collect interest and attorney’s fees from the customer if the customer fails to remit timely and full payment. It does not have to specify a particular amount or percentage of attorney’s fees (it may simply state that the customer will be responsible to pay your company’s reasonable attorney’s fees), but it should, however, specify a particular amount of interest that will be charged to the customer if the customer fails to remit timely and full payment.

Creating a viable credit application document is only part of the process; you must also determine the credit worthiness of the customer. It is important to review your customer’s completed credit application thoroughly. Here are a few of the best practices for application review:

1. Confirm that the Customer’s Name is Correct

To confirm your customer’s name is correct and that the customer is qualified to transact business in the State of Alabama, visit the website for the Alabama Secretary of State . This site is where you’ll be able to find if there is an entity with the exact name as listed in the credit application and ensure that the customer is who they claim to be.

2. Check UCC (Uniform Commercial Code) Filing Information

While you are at the website for the Alabama Secretary of State, you may find it useful to check the UCC (Uniform Commercial Code) filing information for your customer . This information will allow you to determine if your customer has given a security interest in its personal property (accounts, inventory, equipment, virtually anything other than real estate) to a lender. If the answer is yes, the customer likely has an account with the lender and you can follow up with the lender before extending credit to the customer.

3. Google Your Customer’s Name and Address

As simple as this seems, it is a very important step in making sure that this information is correct and verifiable. Performing a basic Google search on your customer’s name (as it appears on the credit application) and city could potentially provide you with additional phone numbers not listed on the credit application, as well as business reviews (in certain cases) that could be helpful.

4. Follow Up with Credit References

Don’t hesitate to follow up with all credit references that the customer lists on your application. It is important that you take your time and ask questions that will help you identify the customer’s payment and business history. During this time, also follow up on any additional leads that you may have uncovered earlier in the review process.

5. Correct Any Errors in the Credit Application

Do not wait until after your company has extended credit to correct any errors in the credit application as doing so will cause you to lose your leverage in the situation, and you may never be able to get correct information.

  In addition to establishing the contractual terms between your company and its customer, a credit application provides your company with an excellent means of obtaining the information that your company will need if the customer fails to pay for the goods and/or services it purchases or otherwise does not live up to its contractual obligations. It may not seem important to document your file with the information that you will need to recover from that customer if he or she later fails to pay, but there will likely never be a better opportunity to acquire this information. Make it a priority to review every credit application that is submitted and follow up with the customer and third parties to verify the accuracy of the information.

Leave a Reply Cancel reply

You must be logged in to post a comment.

Capital One Main Navigation

• Learn & Grow
• Life Events
• Money Management
• More Than Money
• Privacy & Security
• Business Resources

How to apply for a business credit card

Learn about the business credit card application process—how it works, what information you need and when you should apply..

July 26, 2022 | 9 min read

Business credit cards can be important tools to help you grow and manage your business. A business credit card can be a great way to increase your purchasing power. It can also deliver other important benefits like helping you build a credit history, ensuring smooth cash flow, making record-keeping easier, and delivering attractive rewards and incentives for using the card. 

If you've been searching for a business credit card to fit your needs, you likely have found a wide assortment of options—and an even wider array of terms, conditions, benefits and features. If you're a new business owner and are unsure of how to apply for a business credit card, this article will help clarify how to apply for a business credit card and the most efficient steps to go from application to approval. 

How to get a business credit card

It's relatively simple to apply for a business credit card. Much of the process is similar to applying for a personal credit card. To start, review the card options available and choose a card that meets your business's needs. Then, take some time to check your personal credit, gather the information needed to apply for the credit card and complete your application. We'll break down each of these steps to applying for a business credit card in greater detail and include tips to keep in mind at each step.

Step 1: Research business credit cards

There is a wide range of business credit cards that suit a variety of business needs. It's just a matter of matching card offerings with your needs. If you travel often, you may want a business credit card that offers travel points and miles incentives. If you plan on using your credit card to pay vendors, a business credit card with cash-back rewards may be an option to consider. Learn more about the different Capital One Business credit cards by comparing them with your business goals. 

Here are some practical tips to keep in mind to help you make the most informed choice as you research your business credit card options:

• Review your business expenses to see how much and where you're currently spending your money. This will help you understand what rewards programs (like travel miles and cash back) would benefit your business most. 
• Understand rewards caps and redemption rules, which can limit how you use your rewards. 
• Compare fees and interest rates. If you carry a card balance each month, a low interest rate will be important. Remember that annual percentage rates (APRs) are determined by your creditworthiness. Advertised low rates aren’t guaranteed. There are also cards that require you to pay your balance in full each month. 
• Understand the qualifications necessary for approval, like a personal guarantee and personal credit score thresholds. 
• Look into special signup or welcome bonus offers and understand the requirements for spending to qualify for the offer.
• Research what credit reporting agencies the cards report to—such as Equifax® or Experian®—if you’re interested in building up your business credit score.

Step 2: Choose a card that meets your needs

Once you've narrowed your options for business credit cards with offers, perks and rates that align with your business needs, you’ll want to compare benefits, cardholder obligations and qualification criteria side by side. To make this process easier, compare cards in the same category. For example, compare travel rewards cards to other travel rewards cards. Compare Capital One Spark Business card benefits —including perks, tools and rewards.

Step 3: Check your personal credit score

Once you have an idea of which card you want to apply for, take a moment to check your personal credit scores. The higher your scores, the more likely you'll be approved for a business credit card with the best rates. Most credit card issuers provide their cardholders free access to their personal credit scores.

CreditWise from Capital One is a free tool that allows you to monitor and stay on top of your credit score. 

Each business credit card will indicate its recommended credit score ranges for qualification. If your credit score doesn't fall within the range for the business credit card you want, paying bills on time and paying down credit card debt can help improve your score. If this is the case, consider looking for a card that supports credit building.

Step 4: Gather the information needed to apply

Prepare to complete a business credit card application by gathering all the necessary information that is required. You'll need information about income and expenses for your business; your personal identification information, like your Social Security number; plus business identification information, such as your employer identification number (EIN) or tax identification number. Additionally, you'll need to know the legal name, address, birthdate and Social Security number for any beneficial owners or business controllers with a 25% or greater stake.

Step 5: Complete the application

When you're ready to apply, fill out an online application for a business credit card. It usually takes less than 10 minutes to complete. You may be asked to verify certain information or provide additional details as your application is reviewed.

Remember that each application will result in a credit inquiry, which shows up on your credit report and may lower your credit score.

Step 6: Wait for the approval decision

Once you submit your application, it will be reviewed by the card issuer. You may be approved within a few minutes or within a few days. Once approved, you'll receive your business credit card by mail in about seven to 14 business days.

What you need to apply for a business credit card

The business credit card application process is similar to applying for a personal credit card. There will be a section requiring personal information such as your name, Social Security number, home address and annual income. There will also be a section asking for specific information about your business. That information may include:

• Contact information: Provide your business's mailing address and phone number.
• Legal name of your business : Provide the name you're doing business under, such as the name you registered as a limited liability company (LLC) or S or C corporation with your state. If you're a sole proprietor, just provide your legal name.
• Federal tax ID: If you registered your business with the state, you received a nine-digit federal tax ID number, or EIN. Input that number in this section. If you're a sole proprietor, list your Social Security number.
• Type of industry (NAICS code): You'll likely find a drop-down list of industry classifications in this section. These classifications categorize companies by their primary business activity. Choose the classification that most closely applies to your business.
• Legal structure of your business: If you've registered your business with the state, your business is classified as a specific legal structure, such as a corporation, partnership, nonprofit, LLC or cooperative. If you're a freelancer or a one-person business and haven't registered with the state, your business is considered a sole proprietorship.
• Revenue: List your previous year's annual revenue before taxes and expenses.
• Monthly expenses: List your average monthly credit card expenses for the business.
• Beneficial owners or business controllers: If your business is a corporation or partnership, you'll be asked to list the names, contact information and personal identification information of people who are beneficial owners—those who own at least 25% of your company. 
• Years in the business: Select the amount of time your business has existed.
• Your role in the business: List your role—such as owner or partner.

Frequently asked questions

When is the right time to apply for a business credit card?

The right time to apply for a credit card will vary depending on unique aspects of your company, including things like where you are in your seasonal business cycle. That’s why it's important to consider your business needs, goals and requirements and your own credit preferences as a business owner.

Whether you need to finance a large purchase or are just looking for additional travel rewards, make sure your personal credit score is in good shape before you apply for a business credit card. If you’ve just launched your business, be sure you have a business plan that helps project annual revenue and expenses, since this information will be required on your application.

Who can apply for a business credit card?

Business credit cards aren't just for those who own a corporation, partnership or limited liability company. Freelancers and independent contractors are considered self-employed business owners, commonly known as sole proprietors. Simply put, if you work for yourself, you may be eligible for a business credit card. 

Keep in mind that your personal credit score will be taken into consideration during the application review process.

Does applying for a business credit card affect personal credit?

Applying for a business credit card can affect your personal credit since a credit card issuer will conduct a personal credit inquiry as part of the application review process. Each credit inquiry may lower your credit score and show up on your personal credit report.

Can you apply for a business credit card with an EIN?

When you apply for a business credit card with your EIN, the application will also require that you list your Social Security number. Card issuers will use your Social Security number to check your personal credit as part of the application review process. Doing so helps them understand your personal track record in managing credit and paying off debt.

Take the first step by comparing Spark Business cards today

A business credit card can be an important management tool that helps your business maintain ample cash flow, establish a business credit history, and take advantage of important perks and rewards. The best business credit card for your company depends on how you want to use that credit and what rewards will work best for your enterprise.

Ready to find one? See if there's a Capital One Spark Business credit card that's right for you.

Unlimited rewards potential

Enjoy unlimited 2% cash back and no preset spending limit with Spark Cash Plus.

Related Content

4 benefits of virtual cards for business owners.

article | December 9, 2021 | 4 min read

Pricing strategies: How to price products and services

article | July 14, 2022 | 8 min read

Cash flow for your business: What you need to know

article | November 17, 2020 | 3 min read

Ask an Applicant For Credit to Submit More Information • Example Letters, Guides and Samples

This letter should acknowledge the receipt of an applicant's request for a credit account and ask for more information to help you evaluate the application. Assure your reader that any information he or she gives you will remain confidential.

How to write this credit letter:

• Thank the applicant for expressing interest in your company or in obtaining a credit account from your company.
• Politely ask for the additional information. Let the applicant know that your request is standard.
• Assure the applicant that you will keep the information confidential.
• Thank the reader for his or her cooperation and ask for a prompt reply.

Example Letter #1

Thank you for your interest in establishing a credit line with Doe Corporation. To process your application, we will need the following additional information:

1. Social security number

2. Monthly payment amount on your second mortgage loan

3. Verification of income from your present employer

Of course, all information you provide us will be kept confidential. We will have a decision on your application within two days after receiving this additional information. Thank you for your cooperation.

Example Letter #2

Thank you for your recent request for credit with Doe Corporation. In reviewing your application, we have found that some additional information is needed to complete the approval process. We assure you that all information obtained to evaluate your qualification for credit will be kept confidential.

Please send us the information requested on the attached form as soon as possible, so we can finish processing your request without delay. We look forward to doing business with you.

Example Letter #3

Thank you for your interest in store credit at Doe's. In order to process your application we ask that you complete and sign the enclosed forms authorizing a standard check on your credit history. Of course this information will be used only to evaluate your credit application with Doe's. As soon as we receive the completed forms we will fax the application to our credit company. You should know the results within one week. Thank you again for your cooperation.

Example Letter #4

We were pleased to receive your application for a credit line and have begun processing it. Due to an oversight on my part, however, you did not receive all the necessary paperwork. Enclosed are two additional standard forms for you to sign and submit to our credit department. You may rest easy knowing your credit information is kept in strictest confidence. I apologize for the delay, and feel confident that as soon as we have the additional information, we will be able to extend you a fine credit line.

Write Your Letter Step-by-Step

1 Thank the applicant for expressing interest in your company or in obtaining a credit account from your company.

Sample Sentences for Step 1

• We received your credit application on June 30. On behalf of the Doe Corporation, I want to thank you for your interest in opening an account with our company.
• Thank you for your recent purchase.
• Thank you for sending us your credit application. We appreciate your confidence in our services.
• Thank you for personally delivering your credit application to my office last week. I enjoyed our visit.
• We received your application on February 20, and began processing your request that day.
• We appreciate your interest in opening a charge account with the Doe Corporation.
• Thank you for showing an interest in our company by applying for a charge account.
• We appreciate your letter asking for a $3,000 credit limit, which accompanied your order this month.
• Thank you for expressing interest in opening a charge account with Doe's.
• We were pleased to receive your letter on May 9, requesting a credit account for your company.
• Thank you for deciding to purchase your building supplies from Doe Lumber.

Sample Phrases for Step 1

• a charge account with
• applied for a line of credit
• appreciate your confidence in
• are pleased you are interested in
• expressed an interest in
• expressing interest in
• for your interest in opening a
• for applying for a
• greatly appreciate your application for
• inquired about establishing
• look forward to serving you
• obtaining credit with
• on behalf of
• opening a charge account with
• received your credit application
• request for a credit account
• sending us your credit application
• thank you for
• to establish a credit account with
• want to thank you for
• your recent order
• your letter requesting
• your interest in
• your recent enquiry about

2 Politely ask for the additional information. Let the applicant know that your request is standard.

Sample Sentences for Step 2

• In order to finish processing your credit application, we need you to complete and return the enclosed forms.
• We have reviewed your credit application for an account with the Doe Corporation. In order to complete the process, however, we need a little more information. Please send the names and addresses of two current references who can comment on your financial reliability.
• In order to help us process your information quickly, please send us the following information:
• According to company policy, we must ask you to complete the attached forms before we can consider a credit account for you.
• I neglected to ask you to fill out and sign the enclosed financial disclosure form. We must have it on file before we can grant you the credit line you have requested.
• To extend your credit line, I need additional information.

Sample Phrases for Step 2

• a routine credit investigation
• according to company policy
• as is customary
• as soon as we receive
• as soon as we have this information
• ask you to complete
• before we can grant you
• company policy dictates that
• complete the enclosed form
• fill out and sign
• further information regarding your
• in order to process your
• must have this on file
• need you to complete
• need to update your
• need more information
• neglected to ask you to
• once we have received
• our usual procedure is
• please furnish us with
• please send us your latest
• please send me a copy of
• return the enclosed forms
• supply the required information
• use the enclosed forms
• will notify you within

3 Assure the applicant that you will keep the information confidential.

Sample Sentences for Step 3

• I assure you that we are required to keep confidential all information you may give us.
• All information you send will be kept in strictest confidence.
• Of course, the financial reports you provide will remain confidential.
• You have our assurance that only our financial representatives will review this information.
• All information you send will be held in strict confidence.
• Naturally, we will handle this information in strict confidence.
• In accordance with company policy, our financial department will respect your privacy and treat this information as confidential.
• The information you give us will be used solely for the purpose of establishing your credit account with the Doe Corporation.

Sample Phrases for Step 3

• all information you send
• assure you that
• confidential work file
• for our internal use only
• have our assurance that
• in accordance with company policy
• information will be handled only by
• information will be used only for
• is strictly for the purpose of
• keep all information confidential
• kept in strictest confidence
• only our financial representatives
• respect your privacy
• solely for the purpose of
• this information is confidential
• will view this information
• will be treated in confidence
• will remain confidential

4 Thank the reader for his or her cooperation and ask for a prompt reply.

Sample Sentences for Step 4

• As soon as we receive this information, we can process your application.
• Thank you for your cooperation. We will begin our final evaluation of your credit request as soon as we receive the information.
• We look forward to your prompt reply. If you have any questions concerning your application, please call us at 555-5555.
• Thank you for your interest in the Doe Corporation and for your cooperation in providing the necessary information. We look forward to welcoming you as a new customer.
• We appreciate your desire to open an account with the Doe Corporation and we hope to hear from you soon.
• We are pleased to help you open a charge account and would appreciate your prompt reply.

Sample Phrases for Step 4

• appreciate your cooperation
• as soon as possible
• begin our final evaluation
• concerning your application for
• continue processing your
• eager to expedite your
• for your cooperation
• hope to hear from you soon
• if there is anything we can do to
• if you have any questions
• look forward to
• please call us at
• return the form to me
• return it to us within
• send the necessary information
• serve you promptly and efficiently
• welcome you as a new customer
• would appreciate your prompt reply
• would be pleased to
• will attend to your request
• your quick response will facilitate

Recommended Articles

Recommended letter-writing resources.

Action Verbs for Resumes and Cover Letters

Business Letter Format Tips

Letter Closings

25+ Free Business Credit Application Form Templates – PDF

A Business Credit Application Form Template is a standardized document lenders use to gather necessary information from businesses applying for credit. This template typically includes sections for business details, such as legal name, type of business, years in operation, owner information, and financial data like bank accounts, trade references, and financial statements. The purpose of this template is to assess the creditworthiness of a business efficiently and to facilitate a systematic approach to credit evaluation.

Download Free Business Credit Application Form Templates

What is a Business Credit Application Form?

A Business Credit Application Form is a crucial document lending institutions and suppliers use to evaluate a business’s creditworthiness. This form typically requests detailed information about the business, including its name, nature, ownership details, financial statements, and references.

Completing this form initiates the credit evaluation process, enabling creditors to make informed decisions regarding extending credit lines or loans to the business. It is a foundational step in establishing a financial relationship between businesses and financial entities or suppliers.

Benefits of Using a Business Credit Application Form

Utilizing a business credit application form can streamline operations and support financial management within a company.

Here are several key benefits:

Risk Assessment

It aids in effectively assessing the creditworthiness of potential clients. Businesses can mitigate the potential risks of extending credit by evaluating the financial information provided.

Financial Management

The form helps in managing the company’s cash flow more efficiently. Understanding the credit background of customers enables better planning and allocation of resources.

Legal Protection

Having a formal credit application process in place can provide legal backing in case of disputes. It ensures that all transactions are documented and credit terms are clearly outlined.

Customer Relationship Management

It allows for establishing clear payment terms upfront, reducing misunderstandings, and fostering better customer relationships.

Components of a Business Credit Application Form

Components of a Business Credit Application Form include:

• Business Information : This section gathers essential details about the business, including the legal business name, type of business entity (e.g., LLC, corporation, partnership), tax ID number, business address, and contact information.
• Ownership and Management : Information regarding the ownership structure and key management personnel, including names, titles, contact details, and ownership percentages.
• Bank and Trade References : Listing the business’s banking information and trade references to assess financial stability and creditworthiness. This could include the bank name, account types, account numbers, and contact information for trade references.
• Credit Request : Details about the type and amount of credit being sought, including terms and conditions the applicant is willing to comply with.
• Financial Information : Provision of recent financial statements such as balance sheets, income, and cash flow statements. This may also include projections for startups or businesses seeking credit for expansion.
• Tax Information : Agreement to provide tax returns and other tax-related documents upon request.
• Signature and Date : A section for the authorized signer(s) to declare that all information provided is accurate and to consent to credit and reference checks.

Why Businesses Need to Fill Out a Business Credit Application Form

Filling out a business credit application form is crucial for companies looking to establish or expand their borrowing capabilities. This formal documentation allows businesses to access credit from lenders, suppliers, or leasing companies, facilitating the acquisition of necessary products, services, or equipment without immediate payment.

By completing this application, businesses demonstrate their financial stability and creditworthiness, paving the way for potential partnerships and ensuring trust between the company and its creditors. Ultimately, this process is essential for fostering growth, managing cash flow, and securing the financial flexibility required in today’s competitive market.

Tips for Using a Business Credit Application Form Effectively

Here are some tips for using a Business Credit Application Form Effectively:

1. Ensure Clarity and Simplicity

Ensure your business credit application form is easy to understand and fill out. Complex terms or vague instructions can lead to incorrect or incomplete information, which might delay the processing. Clear and concise questions can enhance the accuracy of the data received.

2. Request Essential Information Only

Limit the questions to essential information that directly affects the credit evaluation process. This includes the applicant’s business name, contact details, business structure, financial information, and references. Overloading the form with unnecessary questions can deter potential applicants.

3. Incorporate Privacy and Security Statements

Assure applicants of their data’s privacy and security by including statements on how their information will be used and protected. This establishes trust and encourages more businesses to apply, knowing their sensitive information is handled carefully.

4. Provide Instructions for Completing and Submitting the Form

Include clear instructions for filling out the form and the subsequent steps once it is completed. Detail the submission process, whether online, via email, or in-person, and specify any required documentation accompanying the form.

5. Follow Up Promptly

Once the application is received, ensure a quick and efficient review process. Keeping applicants waiting can lead to frustration and might drive them to seek credit elsewhere. Prompt follow-up demonstrates professionalism and a high level of customer service .

How to Create a Business Credit Application Form Template

Creating a business credit application form template involves several key steps to ensure it collects all necessary information from applicants in a structured manner. Follow these steps to develop an effective template:

• Gather Essential Information : List all the essential information you need from applicants. This typically includes company name, contact information, business type, tax ID numbers, trade references, and financial information.
• Design the Layout : Use a clean, professional layout for the form. Consider using sections to organize information logically, such as company details, references, and financial information.
• Incorporate Legal Statements : Include legal statements regarding the accuracy of the information provided and permission for credit checks. This often requires input from legal counsel to ensure compliance with local laws.
• Provide Instructions : Clearly state what applicants should do with the form once completed, such as where to send or upload it. Please include any additional documents they need to provide.
• Review and Test : Review the form for clarity and completeness before finalizing. Testing it with a small group of users may be helpful to ensure it is user-friendly and collects the information effectively.
• Update Regularly : Finally, review and update the form regularly to incorporate any credit policy or legislation changes.

In conclusion, a well-crafted Business Credit Application Form is an essential tool that benefits both the lender and the borrower. It streamlines the process of evaluating creditworthiness, ensuring businesses can access the financial resources they need while allowing lenders to make informed decisions.

By incorporating comprehensive and clear fields for information, this template aids in establishing a transparent and efficient pathway toward successful financial transactions. Remember, the strength of your credit application can significantly influence the outcome of your request, making it imperative to approach this document with attention to detail and accuracy.

Similar Posts

26+ free donation pledge form templates (doc, excel).

A Donation Pledge Form Template is a document designed to facilitate making commitments by individuals or organizations to donate a specific amount of money or resources to a cause or charity. This template typically includes fields…

26+ Free Rolling Forecast Templates – EXCEL & PDF

A Rolling Forecast Template is a dynamic financial model that allows businesses to project future results based on the latest data, rather than being confined to a static fiscal year. It extends beyond the traditional budgeting…

30+ Free Art Lesson Plan Templates – PDF, Word

An Art Lesson Plan Template is a structured guide educators use to design effective, engaging, and organized art lessons. It outlines the key components of the lesson, including objectives, materials needed, step-by-step instructions for activities, assessment…

28+ Free Sample Research Report Templates – PDF, DOC

A Research Report Template serves as a structured framework designed to guide the writer through meticulously documenting findings from a research project. It typically includes an abstract, introduction, methodology, results, discussion, and conclusions. Still, it can…

16+ Free Return Merchandise Form Templates (PDF, DOC)

A Return Merchandise Authorization (RMA) form template is a preformatted document that businesses provide to customers who wish to return purchased goods. It outlines the necessary information required from the customer, such as product description, reason…

30+ Free Sample Witness Statement Templates (PDF, DOC)

A Witness Statement Template is a structured format used to document the account or testimony of an individual who knows relevant to a particular event, incident, or situation. It presents the witness’s observations or experiences in…

Sample Letters

Unique letters by an experienced writer

Sample Business Credit Application

The terms under which the credit facilties are agreed will depend on factors such as :

• length of time as a customer
• previous payment history
• size of orders
• potential growth in purchases
• good references

Business credit application letter – Sample 1

[ Your Company Name ] [ Your Company Address ]

[ Company Name ] [ Company Address ]

Dear [ Name of Recipient ],

Our company, [ NAME OF YOUR COMPANY ], is looking to open a line of credit with [ COMPANY OF RECIPIENT ]. We have been operating in the industry for [ NUMBER OF YEARS ] in [ LOCATION OF YOUR COMPANY ] and we have been using your services for a long time.

[ Describe the reason why you need the credit and where it will be used ]

Bankers and trade references can be provided on request.

If you require other information to be provided or there are forms that we need to submit, please let me know.

Thank you for your kind consideration.

Yours Sincerely,

[ Your name ] [ Position ]

Sample 2: Date Name Position Company Address

Dear [Mr. or Ms. Last Name]: This is to request a credit line for our company.

We would like to tell you that we are impressed on the services that you are offering and we know several people who recommended your services to us.

[COMPANY INFORMATION]

We attached some purchase orders from our clients. What we provided are only some of the documents that we have and all of these are still incomplete as they are only meant to provide you an idea on our services. You can also check with our background to know the credit standing of our company.

If you will need other supporting documents or there are application forms that we need to fill up, please feel free to contact us anytime.

Truly yours,

[Name] [Position]

Date Name Position Company Address

Dear [Mr. or Ms. Last Name]:

Our company, [NAME OF COMPANY] would like to establish a line of credit with [COMPANY OF RECIPIENT]. My employees have been going into your store several times every month and it would be easier if we will be able to pay it by the end of each month. Based on the per month purchases that my employees have been making, we would like to request a [AMOUNT OF CREDIT].

If you want to have an idea on our company’s credit worthiness, you can try to contact some of the companies that we have dealt with on the past few years:

[LIST OF COMPANIES AND CONTACT INFORMATION]

Thank you for your kind consideration and we are looking forward to hear from you.

[YOUR NAME] [POSITION]

Search for a letter

I’m Sue and I’ve written all the letters on this website. I hope you’ll find them useful.

Most recent letters

• Sample letter apologising for bad behaviour
• Is letter writing still relevant in today’s digital world of communication?
• Welcome to Sample Letters
• 25 ways to say I Love You at Christmas
• Sample message or letter to a retiring boss

Word & Excel Templates

Printable Word and Excel Templates

New Credit Application Letter to Customers

People who regularly buy products from a brand eventually develop trust and a strong relationship. Owing to this, they get the entitlement to apply for buying products on credit. When products are purchased on credit, the customer saves himself from having to pay individually for every purchase.

There may be many issues such as lack of money or unavailability of cash that may hinder the customer to complete the process of buying a product. Therefore, they choose to write the credit application letter in order to request for getting permission to buy things first and pay later.

What is a new credit application letter to customers?

Usually, a customer writes a request letter to a business and asks for the opening of a credit account. In some cases, the business also writes this letter to customers when it wants its buyers to buy products without paying on the spot.

When to write?

Now the question is what makes a business write this letter. There are certain situations and some of these are given below:

When a customer has requested the procedure:

A common situation is when customers request a business to provide them with the information about the entire procedure of getting new credit. In response to the letter or email from the customer, the business replies with this letter and attaches an application form so that the customer can fill it out and initiate the procedure.

When sales of a business are reduced:

Oftentimes, a business realizes that its sales are declining because it does not offer its products on credit, and people who cannot pay immediately switch to those brands that provide them with the opportunity to pay later. So, in order to inform the buyers that buying products with the intent to pay later is possible now, they write this letter.

How to write?

In order to write a letter that is professional and addresses important details in an effective manner, you can follow the tips given below:

Start the letter with admiring the buyers:

As soon as you start the letter, admire the customer for being a loyal buyer and for staying with the company despite the fact that there are many options available. Express your plans to serve the business with better services. This part of the letter pleases the buyer and makes him feel valued. For a business to be successful, it is very important to give due value and respect to purchasers.

Ask the customers to fill out the form:

If you want shoppers to start buying products from you on credit, ask them to fill out the form that you have attached with the letter. Describe that filling this form will be considered as a request from consumers to make some purchases from the business without paying on a spot.

Develop trust:

If you know that the consumer might not be comfortable sharing personal information by filling this form, tell how you are intended to use the shared information and what steps you will take to keep the information protected. 

Sample letter:

Subject: New credit application for [X]

Dear value customer,

We are so pleased to know that you are interested in our company and it has always been our topmost priority to serve our customers with the best services.

It is our humble request to our respected customers to submit a credit application. After receiving this application, we will be in a better position to offer our products at the best-discounted prices. We are cognizant of the fact that the information we require from you is a bit sensitive and you may not be comfortable sharing it. However, we collect this information from all our customers. In addition to it, we always take care of this information. It is our top priority to save you from having to pay a higher price just because of the bad credit of other people.

We have enclosed an application form in this letter that you are requested to fill out at your earliest convenience. This way, we will be able to process the information in a better way.

We are looking forward to a humble response from your side.

File: Word (.docx) & iPad Size 22 KB

• Umrah Leave Request Letter to Boss
• Ramadan Office Schedule Announcement Letters/Emails
• Letter to Friend Expressing Support
• Letter to Employer Requesting Mental Health Accommodation
• Letter Requesting Reference Check Information
• Letter Requesting Salary Certificate
• Letter Requesting Recommendation from Previous Employer
• One Hour Off Permission Letter to HR
• Payroll Apology Letter to Employee
• Advice Letter to Subordinate on Effective Communication

Letters.org

The Number 1 Letter Writing Website in the world

Credit Application Letter

Last Updated On July 16, 2018 By Letter Writing Leave a Comment

When an object is bought without paying money, it is said to have been purchased on credit. The credit application letter is usually issued by guarantors, bankers and the person who give surety in case the debtor is not able to make the payment of the dues. The letter should be drafted in a way that it should take into confidence the owner of the goods regarding the sincerity of the party.

A credit application letter is a request made to the concerned authority to extend the credit period. It can be done orally, but it is wise for you to write a letter so that the record is maintained.

Credit Application Letter Writing Tips

• As it is a formal letter, it has to be simple, precise and easy to understand.
• The content of the letter should be straightforward and short. But at the same time, it should contain all the necessary information.
• The letter must be clear, understandable and to the point.
• The language used must be formal and convincing enough.

Credit Application Letter Template

Use our free Credit Application Letter to help you get started.

______________ (Your name)

______________ (Your address)

__________________

Date: __________ (date of writing letter)

__________ (customer’s name)

__________ (customer’s address)

Subject:___________

Dear Mr. /Ms__________ (name of the concerned person),

We are happy to know that you are interested in the company and we work hard to serve the best to our customers. You have been one of the most valuable clients of our business.

We have attached a credit application form with this email so that we know what our customers like and dislike about our services. The information that we need from you is private, so we make certain to keep the details protected.

(Mention the reasons why you want them to fill the credit application form)

(Mention how will it help them and the company)

Kindly fill the form and send back to us. We will provide you the third-day payment term after the approval of the form.

Thanks and regards,

……………………….(name and designation)

Sample Letter

From, Rajesh Koothrapalli, 45 Winston Place, Tower Drive, Hyderabad

Bhaskar Ranjan,

45, Highrise Towers,

Subject: Credit Application letter

Dear Mr. Ranjan,

We are glad that you have an interest in our company for business purpose and we strive to serve our customers to the best of our interests. We recognize the fact that you have been a valuable customer for our company for the past several years.

We request our customers to give a credit application so that we can offer our products at competitive and reasonable prices. We are aware of the fact that the information we request is sensitive. However please understand that we seek the same information from all our customers so that we can protect you from making payment of higher prices because of other persons’ bad credit.

We request you to fill up the enclosed application form and send it back to us at the earliest. We can offer you a thirty-day payment term after approval.

Looking for a favorable response,

Thanking you,

Yours Sincerely,

Rajesh Koothrapalli

Email Format

Below is an email format of a Credit Application Letter.

To: [email protected] From: [email protected]

We are happy that you have a business interest in our company and we always strive to serve our customers to the best of our abilities. You have been one of our valued customers all these years.

We are seeking a credit application form from our clients so that we can offer them our goods at competitive and reasonable prices. Though we are aware of the fact that the information we want is sensitive, we give you an assurance that the same information is sought from all the customers so that we can give protection to you from making payment of higher prices because of the fault of other clients’ bad credit.

We have enclosed a credit application letter along with this letter. Please fill in the details at the earliest and send it to us. After we receive the letter from you, we can give you a thirty-day payment term after approval.

Related Letters:

• Sample College Application Letter
• Sample Loan Application Letter
• Application Letter to Bank Manager
• Sample Job Application Cover Letter
• Job Application Letter
• Transfer Application
• Application Letter by Fresher
• Application Letter for Referral
• Business Application Letter
• College Application Letter
• General Application Letter
• Good Application Letter
• Grant Application Letter
• Letter Of Intend Application
• Job Application E-Mail Template
• Job Application Letter Format
• Job Application Letter Template
• Receptionist Application Letter
• Sample Application Letter
• Solicited Application Letter
• Summer Job Application Letter
• Work Application Letter
• Unsolicited Application Letter
• Corporation Application Letter
• Rezoning Application Letter

Leave a Reply Cancel reply

You must be logged in to post a comment.

• Who is LendingTree Best For?

What is LendingTree?

How lendingtree works, key features of lendingtree personal loans.

• LendingTree Personal Loan Pros and Cons

LendingTree Personal Loan Application Process

• LendingTree Frequently Asked Questions
• Why You Should Trust Us

LendingTree Personal Loans Review 2024

Affiliate links for the products on this page are from partners that compensate us (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate personal loans to write unbiased product reviews.

LendingTree can be a good choice for borrowers who want to compare many personal loan offers at once. Some of LendingTree's partner lenders will get you your loan proceeds quickly . 

Depending on your credit score and annual income, your APR will range from 5.99% to 35.99%. If you need to get a loan with a bad credit score , it's a good option to have.

Compare Personal Loan Rates

LendingTree is an online lending marketplace. Its platform allows bo rowers to compare offers from multiple providers to find the best terms on a wide range of products, including personal loans, mortgages, credit cards, and more.

By providing your information one time, you can get rate quotes and other details about loans you may qualify for all at the same time and compare them side-by-side. This can save a lot of time and make it much easier to find a lender that's right for your your credit profile than going through the process of prequalifying for a personal loan with each one individually.

LendingTree loan amounts range from $1,000 to $50,000. LendingTree's partner lenders offer loans all across the country.

You can find loans at Lending Tree with APRs ranging from 5.99% to 35.99%. The minimum loan term is 12 months, and the maximum is 144 months. You can pay off loans from LendingTree's partner lenders in full at any time with no early payment penalty.

After you've verified your information, the partner lender will get you your money with varying speeds, sometimes by the next business day. 

If LendingTree shows you loan offers with high interest rates, you may want to look into credit cards for people with bad credit and compare rates between a card and a loan. You might be eligible for a lower APR and better terms with a credit card. Weighing the benefits and drawbacks of personal loans vs. credit cards will help you get the best financial deal possible. 

LendingTree Personal Loan Pros & Cons

Steps to apply through lendingtree.

• Provide details on LendingTree's website. You'll need to input your email and basic personal information. Then you'll be asked how much you want to borrow and how you plan to use the money. To get you a rate quote, LendingTree will run a soft credit check, which doesn't affect your credit score. 
• Pre view different loan offers and choose an option . LendingTree will give you loan offers from partner lenders with a variety of rates and term lengths. Pick one you can fit into your monthly budget. 
• Submit a full application. After you've been preapproved, you'll need to fill out a comprehensive application with more detail about your credit history than was part of the initial application. The final approval will require a hard credit check, which will reduce your credit score slightly for a short period of time.
• Receive your funds after signing your agreement . After you're approved, you will be presented with a loan agreement spelling out all the details. The time it will take to get your money after you sign off on it will vary depending on the partner lender you choose. 
• Work loan payments into your monthly budget . Make sure you have enough money to cover all of your financial responsibilities. 

Required information and documentation

Getting approved for a personal loan can require extensive documentation. While this varies among lenders, you can expect to need at least:

• Pay stubs/proof of income
• The last couple years of tax returns
• Documentation of 401(k)s and other financial accounts
• Rent/mortgage history
• Proof of collateral, if you're pursuing a secured loan

Make sure you have these on hand before starting the application process.

Is LendingTree Safe?

Customer reviews of LendingTree are mixed. 

The lending platform has a 4.3 out of 5 rating on TrustPilot , with 81% of more than 13,000 reviewers giving it five stars. Positive reviewers touted fast and easy application and approval, as well as quick funding times after they were approved for loans. Many of the complaints from dissatisfied customers included unwanted phone calls and text messages after sharing their information with LendingTree and disappointment that they didn't qualify for a loan after receiving marketing solicitations from LendingTree indicating that they had already been preapproved.

The Better Business Bureau assigns LendingTree an A+ rating , the highest available. However, customer ratings on the BBB website — which aren't used in the calculation of its ratings — are skewed heavily toward the low end of the 1-to-5 scale, averaging a little more than 1 out of 5 among 125 reviews. The complaints are similar to those found on TrustPilot about unwanted soliciations after sharing their information with LendingTree.

Compare LendingTree Personal Loans

LendingTree Personal Loans vs. FinMkt Personal Loans

Both companies are personal loan marketplaces, but FinMkt is more opaque about its terms. Both lenders have partners that can deposit money into your account in as little as a day.

Both marketplaces allow you to use your loan funds for just about anything, including debt consolidation, vacations, and home improvement. 

LendingTree FAQs

LendingTree's partners pay a commission when borrowers are matched and decide to proceed with a loan offer, allowing the service to be free for consumers.

LendingTree provides access to a wide range of interest rates by allowing multiple lenders to offer loans through its platform. However, it cannot guarantee the best rate because individual borrowers' qualifications and market conditions vary.

LendingTree performs a soft credit check when it matches you with potential lenders, which does not affect your credit score. However, proceeding with a full loan application through a lender will involve a hard credit pull, which is likely to lower your credit score slightly for a short time.

The funding time can vary depending on the lender, but some borrowers may receive funds as soon as the next business day after loan approval.

Why You Should Trust Us: How We Rated LendingTree Personal Loans

We rate all personal loan products in our reviews and guides on a 1-5 scale. The overall rating is a weighted average that takes into account seven different categories, some of which are judged more heavily than others. They are:

• Interest rate (20% of rating)
• Fees (20% of rating)
• Term lengths and loan amounts (15% of rating)
• Funding speed (15% of rating)
• Borrower accessibility (15% of rating)
• Customer support (7.5% of rating)
• Ethics (7.5% of rating)

Each category's weighting is based on its importance to your borrowing experience. Rates and fees have the most direct impact on the overall cost of your loan, so we weigh those the most heavily. Customer support and ethics are still very important parts of the borrowing experience, but do not directly tie to a personal loan's terms, so they have less of an impact on the overall rating.

See our full  ratings methodology for personal loans  for more details.

Editorial Note: Any opinions, analyses, reviews, or recommendations expressed in this article are the author’s alone, and have not been reviewed, approved, or otherwise endorsed by any card issuer. Read our editorial standards .

Please note: While the offers mentioned above are accurate at the time of publication, they're subject to change at any time and may have changed, or may no longer be available.

**Enrollment required.

Watch: What happens when the US debt reaches critical levels?

• Main content

Skip to Content

University of Colorado Denver

• Campus Directory
• Events Calendar
• Human Resources
• Student Services
• Auraria Library
• CU Denver Police
• University Policies

Schools and Colleges

• College of Architecture and Planning
• College of Arts & Media
• Business School
• School of Education & Human Development
• College of Engineering, Design and Computing
• Graduate School
• College of Liberal Arts and Sciences
• School of Public Affairs

Campus Affiliates

• CU Anschutz Medical Campus
• CU Colorado Springs

Foundations of Sustainable Business Certificate

Application materials.

Undergraduate online application  or Graduate online application

 $50 domestic, $75 international application fee 

 Copy of your degree bearing transcripts – unofficial is sufficient

 English language proficiency – if applicable

Undergraduate Apply Now ​

Graduate  Apply Now ​

This certificate introduces the foundational knowledge and concepts for success in any sustainable business career. You’ll be able to compare and contrast competing conceptualizations of sustainable business models, redesign supply chains and products for waste reduction and circularity, set and achieve net-zero carbon targets, apply and report using various sustainability disclosure standards, manage and lead innovative sustainability initiatives and projects, and be aware of various impact investment strategies. Offered online only.

To earn the Certificate, you will need to complete five graduate courses at the Business School of three credit-hours each for a total of fifteen credit-hours. You’ll take sustainable business courses across the traditional disciplines of accounting, finance, management, international business, and business analytics.

Take five sustainable business courses on the following topics:

• Key concepts and issues in sustainable business
• Sustainable supply chains and circularity
• Sustainability accounting, finance, and impact investing
• Corporate decarbonization strategies and carbon accounting
• Managing and leading sustainability initiatives

Flexibility to apply to a future MS degree . The Foundations of Sustainable Business Certificate can be stacked or combined with two additional Certificates from the list below to earn the Master of Science in Sustainable Business if you choose to later apply to the entire MS program.

• Environmental Sustainability Certificate
• Managing for Sustainability Certificate
• Risk Management and Resilience Certificate
• Social Enterprise Certificate
• Sustainable Energy Certificate
• Urban Sustainability and Infrastructure Certificate

Application Deadlines

December 1st, how to apply.

Admission to our post-bachelor certificates is open to recent non-business undergraduate graduates and professionals. Candidates must have graduated with a current cumulative undergraduate GPA of 3.0 (2.5 for Digital Marketing) or higher 

Applicants are required to submit all application materials, including the online application and copy of your degree-bearing transcripts. As an applicant, please complete the  Graduate Non-Degree Admissions  application and fill out the following on the Academic Interests page:

• Select : Certificate
• Select : On-Campus
• Certificates : Business School Certificates
• Subplan : depends on your certificate
• Select the term you wish to start taking classes

For any questions, please contact our admissions team at  [email protected]  or 303-315-8200.

Start your application as a certificate student

• MBA Programs
• MS Programs
• BSBA Program
• For Current Students
• Faculty & Staff Intranet
• Website Feedback
• Privacy Policy
• Legal Notices
• Accreditation

© 2021  The Regents of the University of Colorado , a body corporate. All rights reserved.

Accredited by the Higher Learning Commission . All trademarks are registered property of the University. Used by permission only.

Discover business cover letter examples and more.

Tell hiring managers why you’re perfect for the job. Learn how to write a business cover letter with plenty of examples and a free downloadable template.

Your resume provides a high-level overview of your skills and experience — but a cover letter provides the hiring manager with more specific information about why you’re perfect for the job, both as a professional and as a person. A good cover letter can make or break any job application.

When to use a business cover letter.

A resume will only get you so far in a job hunt. Any time you submit a job application, you should include a business cover letter to accompany your resume. Think of it as a proposal to the hiring manager as to why you’re a good fit for the position.

Some clubs and organizations, especially mission-driven organizations, ask for cover letters from prospective members. They might want to see why you’d be a beneficial member who could further their mission before allowing you to join, which is the perfect time for a business cover letter.

Finally, you might want to include a cover letter if you plan to apply for a certification program. Some certifications have prerequisites. A business cover letter, along with your resume, is a great way to showcase your skills and that you’ve met all the requirements to earn the certification.

Download a free business cover letter template.

Not sure where to begin? Whether you’re looking for business cover letter examples for inspiration or want an outline to get started, you can download a free cover letter template online.

Once you download the template, you can convert the PDF to Word to customize the information to suit your skills and experience. You can also edit the PDF online to add text, leave sticky notes, and more.

To give you some ideas, here’s a quick business cover letter example of what you might want to make yours look like:

San Jose, CA | [email protected] | 123-555-4564

Dear Jane Doe, VP of Human Resources

I came across your job posting for an Account Executive on the Company website, and given my extensive business background, I believe I would be an asset to your organization.

For the past seven years, I have worked as an Account Executive for Big Business, LLC., handling dozens of accounts from businesses both domestic and abroad. I have a certification in Business Development from the ALCOP, and I am also proficient with all major project management software, including Jibberjab, Smile, and Wink.

In addition to my business background, I am a strong communicator with experience leading small teams to achieve set goals within projected timelines.

My schedule is flexible, and I would be interested in setting up a time to discuss the Account Executive position further. Thank you for your time, and I look forward to speaking to you.

Tips to write a business cover letter.

A business cover letter is a balancing act between covering as much information about yourself as possible while keeping it short, so it’s easy for hiring managers to read.

Always use professional language. In a business setting , efficiency is key. Hiring managers read through many applications and don’t have time for fluff. Keep your business cover letter short and straight to the point. Highlight your strong points as quickly as possible.

Be sure to proofread your cover letter for mistakes before sending it. Nothing comes off as more unprofessional than a typo in an important business letter.

Once you’re happy with the final result, remember to save your business cover letter as a PDF. PDFs maintain their formatting regardless of device. You can easily convert Word to PDF online to transform your cover letter into a sharable document that’s ready to send to hiring managers.

The best business cover letter format.

There are several differences between generic cover letters and business cover letters. Overall, business cover letters should be more professional, both in tone and layout. Similar to a standard business letter, professionalism and conciseness is key here. But rather than sell products or services, you’re selling your skills and experience.

To keep your cover letter on track, here’s an outline of the important information and sections to include in your business cover letter template:

• Personal information – Start your cover letter with your name, email, and telephone number at the top of the page in a block format. Address or city is optional.
• Date – Every business letter should be dated. Add the date under your contact information.
• Salutation – Greet the hiring manager. Include their name and perhaps even their job title, just to show you’ve done the research.
• Opening paragraph – Explain that you’re interested in the position and how you heard about the opening. Include the exact job title.
• Second paragraph – Provide a summary of your relevant experience and critical hard skills that make you the best person for the job.
• Third paragraph : Briefly discuss the soft skills that would make you an asset to the business and a good team player.
• Closing paragraph : Let the hiring manager know about your availability to discuss the job further. Thank the hiring manager for their time by name.
• Signature – End the letter with a professional signature.

You should also use a business cover letter format that’s clean and in a block format, with a highly legible font. Use single spacing and keep your margins consistent to maintain a business feel. The easier it is for a hiring manager to read your cover letter, the better.

Frequently asked questions.

Should i write a new cover letter for each application.

Each cover letter should be specific to the job you’re applying to. However, you can create a business cover letter template that covers basic information and quickly customize it before applying to a job to save time creating letters from scratch.

How long should a cover letter be?

Your cover letter should be three to four paragraphs, or approximately 250 to 400 words. Always try to keep it to one page.

Is a cover letter the same thing as a CV?

While they are both very similar, a cover letter isn’t quite the same as a CV. CV stands for curriculum vitae, which focuses mainly on academic achievements. Cover letters focus on professional experience. In the business world, cover letters are preferred.

Keep exploring

Content as a Service - acrobat-hub - Wednesday, October 4, 2023 at 08:45