Glossary: Onboarding
Credit application
A credit application is a form a business buyer completes to ask for credit terms, such as Net 30. It gives the seller what it needs to judge the risk: the legal entity, trade references, bank details and how much credit the buyer wants.
In detail
Selling on net terms means lending money to the buyer, and the credit application is how the seller decides whether to lend. It is separate from a wholesale application, which asks for access to prices. Many sellers approve the account first and invite the buyer to apply for credit after a few paid orders.
A typical form asks for the legal name, registration number, years in business, address, an owner or officer, the tax ID, bank name, two or three trade references, expected monthly purchases, the requested credit limit and terms, and a signature and date. It should also say that you may contact the references and request a credit report, and it should link to your terms, including late fees. Have a lawyer review the wording.
Review each application. Call the references, check a credit report from a bureau, and ask for financial statements on large limits. Then approve the terms and limit asked for, approve a lower limit, or ask for prepayment or a deposit. Record the decision and review the limit each year.
Bank details and signatures are sensitive. Collect only what you use, keep the answers where only finance can read them, and do not tag customers with them or put them in order notes.
Example
A packaging supplier sends a credit application to a restaurant group asking for Net 30 and a $10,000 limit. Two trade references confirm on-time payment, so the supplier approves Net 30 with a $5,000 limit, to be reviewed after six months.
In BSS B2B apps
BSS B2B Solution's registration form can collect the business details a credit review needs, with file uploads up to 10 MB per file. Its Net Terms module sets the payment terms on the draft order, and it does not manage credit limits or run credit checks. Some form features and Net Terms need a paid plan, see the pricing page.
Learn more
Read the Customer onboarding hub for guides, use cases and setup docs, or the complete Shopify B2B guide.