The main goal of any Credit Policy is no other than to maximize the company’s sales while minimizing its risks. For this, we are going to introduce you in this post a quite simple and easy to implement tool that will save us, if we do it properly, a lot of trouble when managing our Working Capital: The Credit Application Form.


The first criterion that we should consider when preparing our Credit Application Form would be knowing if we are dealing with a new client/consumer or if it is already known to us.




Every day, millions of credit applications are being processed around the world for a myriad of products on the market. Despite advances in technology, today we can find sectors where a place is being reserved within the point of sale to conduct the procedures related to the financing of the product or service purchased. Normally it is someone from the Sales Department who fills in the data and it is the consumer who assists him or her. Sometimes, once the consumer provides the data, the response to their Credit Request is obtained immediately, once the data is processed according to the approval decision matrix, since this part of the process is done online.


Regardless of how the process is being conducted, the purpose of the Credit Application Form is none other than to collect the necessary information to determine if we grant the requested credit, which must answer, at least, the following questions:


Who is the client?

Where does he live?

What type of credit are you requesting?

How much?

Do you have previous credit experiences?