The conditions of sale shall mention the period during which the credit is granted, as well as a possible account and the nature of the credit instrument used. We have also included in this sub-dossier a brief guide on credit control and the granting of commercial loans to clients. Debt securities can subsequently solve the problems associated with the existence of a credit agreement. One of the problems with debt notes is that they are signed after the delivery of the goods. One way to get a loan commitment from a customer before the goods are delivered is a business project. The selling company usually writes a business project inviting the client to pay a set amount until a specific date. The project is then sent to the customer`s bank along with the shipping invoices. The granting of credit allows the borrower to benefit from comfort (which leads to more transaction activity) and recurring interest income for the lender. Granting credit to a borrower carries a risk of default, as a borrower may not be able to pay the necessary debt obligations. The Trade Credit Application Form is suitable for any size of client transactions or transactions and can be used regardless of whether your client is a company, partnership or individual entrepreneur.
We have also attached a cover letter form that you can use if you send the form to your clients to fill it out and a sample letter that you can use if you accept the application. The extension of the duration of the credit effectively reduces the price paid by the customer. As a rule, this increases the turnover.