One Best Tool To Reduce Bad Debts
Credit application form, especially for B2B industry, is one of the most helpful tools for businesses to avoid bad debts. In a typical scenario, supplier could request customers to fill up a credit application form before trade starts, assess the application with relevant information, check up customers’ credit records and then decide whether to offer a credit account or keep their trading terms in cash.
The benefits of a good credit application form including but not limited to:
1. Make sure the right entity you are trading with, so you would know which business should chase during internal/external debt collections.
2. Have customers’ full contact details, easier to find the person in charge when they have arrears.
3. Put industrial or business specific clauses to minimise potential disputes.
4. Nominate debt collection costs to the customer, so never worry about fees to hire debt collectors in future.
5. Charge interest against the overdue, usually this rate would be a lot higher than standard bank interest.
6. Set guarantor(s) to get your money more secure.
A customised credit application form may cost around $2k - $3k for lawyer to draft, whereas some debt recovery agencies may offer a general version with lower cost, which is worth to have one even your budget is limited.
Let us know if you are interested to have a credit application form, no matter a business specific one or a budgeted one, we CAN help!
Need more advice about debt collection? Read our blog “How Debt Collection Agency Works?”
Consider our “Commercial Debt Collection” service
Learn more about “Debt Collectors Victoria”