The Old Credit Application Process is Inefficient
Credit applications are often the first step in establishing a relationship with a new customer and learning about a prospective client before entering a business and financial relationship.
Requiring a credit application will help prevent delinquent payments, bad debt and financial loss. Once the application is completed, you will have a snapshot of the company’s financial health and a risk assessment.
But the current manual process -- with templates and Word documents and emailed forms -- is marred by a slow and cumbersome process that goes back decades. Suppliers ask their potential customers to fill out paper credit applications manually. Vendor references and banks are then asked -- sometimes by fax -- to provide information on the creditworthiness of the business.
The old system is fraught with inefficiency and in many cases error. Many applications get lost and are never answered, leaving buyers without the credit terms they are seeking.
Fortunately, there is a solution. By using a digital credit application management system like Nectarine Credit, you are moving your customer onboarding and credit checks to a new and more efficient level.
5 Reasons to Use Digital Credit Applications
- Digital Credit Application Management Systems Are More Accurate. Paper and email applications are more likely to have errors. Mistakes -- even simple innocent mistakes like typos -- are more likely to take place on paper and email applications than on digital credit applications. Digital systems have an audit trail as well as secure and encrypted databases to store customer files.
- Monitor Your Customers. Customer creditworthiness changes. So having customers fill out a credit application one time is not enough. The best way to monitor for changes is to use a platform like Nectarine Credit. With just a click of a button, you can receive automatic updates on your customers' vendors and financials. If necessary, have them fill out and sign a new application to have new and updated legal contract. All with the click of a button.
- Legally Binding Contract. The agreed upon terms, conditions and the guarantees of a credit application are a legally binding contract and will make a significant difference in the collections process and can be relied on should litigation take place if a customer cannot pay. Electronic signatures on digital applications have a more sound and secure audit trail than paper, which can get lost or destroyed.
- Save Time. Digital credit applications take just a few minutes to create and customize. You can send your application out to your customers with just a click of a button. You can monitor and request credit application updates from your customer with just the click of a button. Then you can approve or deny them credit after a quick review of their completed application.
- Ease of Use. Digital credit application management systems give users a bird's eye view of all of their applicants in one place. Users can drill down to manage each applicant individually.
Nectarine Credit offers credit providers an automated digital credit application solution. You can get started for free. The process is simple:
- Fill out your company’s basic information
- Create a credit application with customized fields
- Upload your credit terms or use our free boilerplate terms
- Start sending it out to new and existing customers
- Review your customers’ applications for creditworthiness and then approve or deny them credit
After your customer has completed their application, you will have access to their full legal name, address and all of the relevant know-your-customer (KYC) checks. You’ll also be able to review their federal tax identification number and relevant uploaded documents like financials and tax exemption certificates.
Then you can manage that customer’s application by giving approval and setting their credit terms and limit, denying them credit terms -- or requesting more information. You can view, and dig deep into all of your customer applications in one easy-to-use dashboard.
You’ll have insight into your customers’ bank balances, as well as payment history with vendors.
It’s really that simple.
If you'd like to see a demo of Nectarine Credit's platform, contact us here.