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Businesses nationwide are making the move back to house credit, and the nation’s truckstops and travel plazas are no exception. When done right, house accounts can boost customer loyalty and save operators money, but they also carry risk. What’s more, thin margins on fuel mean operators have little room for error when determining who is a worthy credit risk.
Operators need to establish a customer’s credit worthiness before extending credit, and a detailed, signed credit application can help operators protect themselves. Operators don’t just need to gather information on credit reports — they need to gather the right information.
What Should a Credit Application Include:
You should collect personal information, including:
- Full name
- Social security number
- Driver’s license number
- Credit card information on their credit applications
- Where to find them if things go bad
You should also collect:
- Business name
- Mailing and physical addresses
- Phone, cellular phone and fax numbers
- Email address
- Website address
- Names of principals in the business
- When the business was founded
- Customer’s bank’s name, address, phone number and types of accounts
- Three vendor references with names, addresses and phone numbers
Credit applications should also outline the terms of payment in detail and allow for any penalties arising from non-payment or late payment, including any late fees or interest they may charge, attorney or court fees or collection costs.
Lastly, credit applications should always be signed by the customer, and the business owner should keep the original copy with the original signature.
/// Read the original full article, Payment Plan: Be Smart About Extending House Credit.
Photo Credit: oersin/bigstock.com
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