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New
Account Checklist
- Was the
credit application and credit agreement completed without modifications?
___
- Did an
officer, or the owner sign it? ___
- Was the
personal guaranty signed? ___
- Did the
applicant provide at least three trade references? ___
- Did they
provide a bank reference including the bank name, address, phone number,
account number, and name of the account officer? ___
- Did the
applicant authorize its bank to release information at our request?
___
- Are the
names of the owners or officers listed? ___
- If the
applicant claims to be tax exempt, was the resale certificate completed
and signed? ___
- Did the
applicant indicate the credit limit and terms the company wants or expects?
___
- Did the
applicant provide financial statements if requested or required to do
so? ___
Welcome
Letter/New Account Package
Many companies
have a large number of new customers placing orders. It is desirable to
turn around requests for open account terms as quickly as possible. One
of the tools used to accomplish this is the new account credit package.
The credit package may be mailed or faxed to the customer by the sales
department, or by customer service, or the credit department. Ideally,
this will be done even before the first order is received. A credit package
generally includes the following:
- Welcome
letter (explaining general company practices as well as special items,
such as the terms of sale)
- The seller's
credit application form, along with instructions on completing the application
- An explanation
of the seller's terms and conditions of sale
- Authorization
for the applicant's bank to release credit information. (This release
may be included in the credit application itself but ideally will be
a separate document sent to the customer and requiring the signature
of an officer of that company)
- A sales
tax exemption certificate (if applicable)
Source:
Michael Dennis, author of "Credit and Collection Handbook" available
at the NACM Bookstore.
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