When you have a new ‘version’ of a credit application do you send it out to your already established customers to complete it? Or do you just provide it to your new customers you are onboarding?
What ripple effect do you forsee in having already established customers being asked to complete a new ‘version/form’ when they already have one on file.
Also, found an interesting resource
Thanks for any feedback :)
Here is an interesting resource that could help you @Steve https://academy.highako.com/credit-policy-trade-creditors
If the language hasn't changed in our Credit Agreement section (and it has not in some time) we do not ask established customers to complete the new form.
When I am presented with a new credit application from an existing supplier, the first thing I do is ask for a redline of the changes between the version that we have signed and the new version. I rarely hear anything back in response to that request.
Whenever any of our credit forms are revised, they are only used ‘going forward’.
We don’t require our customers, which already have established accounts and history, to fill out credit applications after they complete the initial application.
This might vary by company dependent on their type of business where owners might also be signing guarantee at the same time
We have updated our credit applications a few times over the years and generally do not ask existing customers to complete the updated form unless there is an ownership/guaranty change . We also request updated applications on occasion for those customers seeking higher credit limits if it affords us the opportunity to seek a guaranty on the account
If the changes are just cosmetic and the language basically the same with no critical changes, we use it moving forward for new customers and updating files case by case.
Also, if you send a blanket mailing to all customers, you stand to lose valuable personal guarantees in the process since the new app becomes the prevailing credit agreement.
We only use it for new customers