Get a free Business Credit Application template, Consumer Credit Application template, Notice of Credit Limit form and Business Credit Letter of Reference for your small business below.
The Business Credit Application template can be used when another business such as a distributor or vendor wishes to establish credit terms or a line of credit with your company. This template helps you gather important information in order to evaluate whether the borrower is reliable and will pay back their debts to you.
The Consumer Credit Application template can be used to address when an individual consumer or customer wishes to establish credit terms with your company. This template will allow you to do a prepare a loan application and ask the right questions so you can minimize the risk of a customer not paying back what they owe.
The Notice of Credit Limit template is a letter/form to consumer to address the need for a credit limit and explains in detail the amount and why their credit was limited.
The Business Credit Letter of Reference (also called letter of good credit or letter of good standing) is a letter that outlines your payment history with a business that you have purchased from in the past. Potential creditors use this letter to learn more about your payment history and determine the risk of providing credit to your company.
Why are Business Credit Templates Necessary?
Small business owners need a guide for the credit process in order to stay on track. Small business owners or entrepreneurs often need help when they are seeking outside financing for the first time. Each credit facility may have different account or income standards, and documents to complete.
The key to establishing a business credit profile and score is to search and find companies that will establish credit for your small business without using a credit check and then report the payment experience to the business credit bureaus. They will be able to help you establish your business credit profile by reporting the information to proper agencies.
If you would like your personal credit separated from your business credit profile and score , here are some general steps you need to take:
- Form a corporation or LLC to operate your small business. With these types of businesses you can establish a business credit profile that is separate from your personal debts. You might be able to apply for credit under your business name and obtain credit without a personal credit check, chances are that you will only have to ask. A social security number and an authorized signature may be required by a credit facility before being issued a credit card.
- Be in full compliance with the business credit market requirements.
- Be fully prepared to address the need to provide a professional business plan and your business transactions or financial statements.
- Find those companies or a lender willing to grant credit to your business without having a check done of your personal credit.
- Always manage your debt and account and keep statements in order so you do not fall into any trouble making payments and you do not negatively affect your credit score.
- Always make monthly payments on time to credit grantors in order to keep your business credit profile active.
How to Fill out a Business Credit Application Form
The key to properly filling out a business credit application form template is to pay attention to details and be truthful. The bank / lender / vendor needs to know specific personal and financial information to make a proper credit analysis before granting credit.
The basics of the name of the business, address and phone number will be requested and legal business entity in addition to the personal information of the owners/members/partners such as names and contact information. The business’s FEIN (Federal Employment Identification Number), information about what the business does (or in the case of personal credit, where the customer works) and names and contact information for references.
It’s common for people to try and hide any credit issues but they are often discovered. It’s the best policy to be upfront and explain the circumstances as they may still give you a chance if you don’t try to hide the facts.
Click on the link to download the business credit application templates:
Sample Customizable Business Credit Application
Sample Business Credit Application Form