Bank Reference

The credit The privilege of buying goods, services or borrowing money in return for a promise of future payment. application (See Credit Application.) should contain a section for the applicant The party (generally buyer/importer) for whose account a letter of credit is established. letter of credi A financing instrument A right to the payment of money such as agency notes, commercial pape The unsecured promissory notes of large, financially sound corporations. r, T-Bills, certificates of deposit (CD's), banker's acceptances and repurchase agreements. issued by a bank in favor of an exporter The person or company that sells or arranges to transport goods out of a country. that substitutes the bank's creditworthiness for that of the importer. t is established. to list his or her bank name, address, account number, phone number, and bank contact name. In order to obtain a rating on the applicant's account, the credit professional should ask the applicant to sign a "Request for Bank Credit Information Form" at the time the credit application is submitted since some banks will not release information about their customers without a signed release.

Many banks will not provide credit information verbally or in writing without written permission from their customers. Therefore, many vendors obtain written authorization prior to sending the inquiry to the customer's bank. This procedure usually makes a difference in if and how quickly creditors submitting these inquiries receive the requested information.

Occasionally, a customer's bank will be slow in responding to a routine inquiry about one of their clients. When this happens, and assuming the creditor A person, business or governmental agency with a claim against a debtor or debtor's business. claim A right to payment or other equitable remedy in the event of a breach of contract. against a debtor or business entity that owes money. or debtor's business. clai A right to payment or other equitable remedy Relates to the judicial means or court procedures by which legal and equitable rights are enforced. in the event of a breach of contract. m against a debto or business entity that owes money A medium of exchange; coined or stamped currency. . r or debtor 's business. company needs the bank reference Information about a credit applicant's banking relationship. in order to a decision about whether or not to extend credit to an applicant, it is perfectly acceptable to inform the applicant of the problem and ask them to contact their bank to request that the process be expedited. There is nothing unlawful or unethical about doing so - irrespective of what the bank may say after being contacted by their customer.