# Customer Credit Application Template for Wholesale Distributors

> Source: https://netray.co/tools/distributor-customer-credit-application-template
> Publisher: Netray (netray.co), AI and integration engineering for ERP and manufacturing systems.
> Section: Free Tools

## Short answer

A credit application form for new distribution customers with trade references, requested terms and a credit review block you complete before creating the customer.

## Category

cost-finance

## Erp

Epicor Prophet 21

## Industry

Wholesale Distribution

## Audience

- Credit manager
- Controller
- Inside sales

## Tool

**Kind:** template

**Output:** document

**Fields:**

#### Your company

**Key:** company

**Type:** text

**Default:** Lakeshore Industrial Supply

#### Applicant legal name

**Key:** applicant

**Type:** text

**Default:** Brazos Fabrication LLC

#### Trade name

**Key:** dba

**Type:** text

**Default:** Brazos Fab

#### Billing address

**Key:** address

**Type:** textarea

**Default:** 4410 Industrial Blvd, Waco, TX 76710

#### Tax ID on file

**Key:** ein_note

**Type:** select

**Options:**

- Yes, provided separately
- Pending

**Default:** Yes, provided separately

#### Years in business

**Key:** years

**Type:** number

**Default:** 9

#### Business type

**Key:** type

**Type:** select

**Options:**

- Corporation
- LLC
- Partnership
- Sole proprietor
- Government
- Non-profit

**Default:** LLC

#### Sales tax exempt

**Key:** exempt

**Type:** select

**Options:**

- No
- Yes, certificate attached
- Resale certificate attached

**Default:** Resale certificate attached

#### Estimated monthly purchases

**Key:** monthly

**Type:** number

**Default:** 18000

#### Credit limit requested

**Key:** limit

**Type:** number

**Default:** 30000

#### Terms requested

**Key:** terms

**Type:** select

**Options:**

- Net 30
- Net 45
- 2% 10 Net 30
- Prepay
- Cash on delivery

**Default:** Net 30

#### Trade reference 1

**Key:** ref1

**Type:** text

**Default:** Midland Fastener Corp, accounts receivable

#### Trade reference 2

**Key:** ref2

**Type:** text

**Default:** Gulf Coast Hydraulics, credit department

#### Bank reference

**Key:** bank

**Type:** text

**Default:** First Central Bank, commercial banking

**Blocks:**

#### Customer Credit Application

**Body:** Submitted to: {{company}}

#### Applicant

**Body:** Legal name: {{applicant}}
Trade name: {{dba}}
Billing address: {{address}}
Business type: {{type}}
Years in business: {{years}}
Tax ID: {{ein_note}}
Sales tax status: {{exempt}}

#### Credit Requested

**Body:** Estimated monthly purchases: {{monthly}}
Credit limit requested: {{limit}}
Terms requested: {{terms}}

#### References

**Table:**

**Columns:**

- Type
- Name and contact
- Verified date
- Result

**Rows:**

**0:** Trade 1

**1:** {{ref1}}

**0:** Trade 2

**1:** {{ref2}}

**0:** Bank

**1:** {{bank}}

#### Credit Review (internal)

**Table:**

**Columns:**

- Check
- Result
- Initials

**Rows:**

**0:** Credit bureau report pulled

**0:** Business registration verified

**0:** Personal guarantee required

**0:** Approved limit and terms

#### Authorization

**Body:** The applicant certifies that the information above is accurate and authorizes the verification of credit references. The applicant agrees to the seller's terms of sale in effect at the time of each order.

#### Signatures

**Signatures:**

- Applicant authorized signer
- Credit manager
- Sales manager

**Notes:** This is a starting point, not legal advice. Have counsel review the authorization and any personal guarantee language, and follow your state's rules. Do not collect full tax ID or bank account numbers in an unsecured form.

## Content

**Intro:** Every new account is an unsecured loan. A consistent credit application, with references you actually call, keeps the customer master clean and gives collections something to point to later. This template produces a ready-to-send form and an internal review block.

**Sections:**

#### How to use the form

**Body:** Fill in the fields you already know, export to PDF, and send it to the applicant to complete and sign. When it returns, the credit team verifies references, pulls a credit report and records the approved limit and terms in the internal review table. Only then is the customer created or released from credit hold in the ERP.

**Bullets:**

- Call the references, do not just file them
- Match the legal name to the state registration
- Keep resale or exemption certificates with the file
- Set the limit before the first order ships

#### Sizing the credit limit

**Body:** A common rule of thumb is to size the limit to about one and a half to two times the expected monthly purchases under net 30 terms, because an invoice can be outstanding for up to 30 to 45 days. With 18,000 estimated monthly purchases, a limit of 27,000 to 36,000 is consistent with the 30,000 requested. Start lower for new businesses and raise it after a clean payment history.

#### Terms and risk

**Body:** Terms are a pricing lever. Discount terms such as 2% 10 Net 30 cost about 36 percent annualised, so offer them deliberately. Newer companies, thin trade references or a limited liability structure often justify a personal guarantee or a prepayment period. Document the reason for any exception on the file.

#### Common mistakes

**Body:** Releasing an order before the application is complete, accepting references that are the applicant's relatives or affiliates, and failing to re-review dormant accounts are the usual failures. Schedule an annual review of the larger accounts and refresh the credit file when an account asks for a big increase.

**Cta:** If you want credit holds and limit reviews driven from ERP aging data with a human approving every change, we can talk through a read-only approach.

**Faq:**

#### Can I use this form with any ERP?

**Answer:** Yes. It is a document template and works independently of the ERP. It is labelled for Prophet 21 distributors because credit limit and terms map to the customer setup fields, but the form is useful anywhere.

#### Should I collect a tax ID number on this form?

**Answer:** Collect it through a secure channel where possible. If your process requires it on paper, handle the document as sensitive. The template only records whether it was provided, to avoid circulating the number in a web form.

#### What is a reasonable starting limit?

**Answer:** Many credit teams start new accounts at a small multiple of the first expected order, for example the first one or two months of purchases, then raise it after several on-time payments. Your own risk appetite and insurance terms decide.

#### Does a signed application make the customer legally bound?

**Answer:** It is evidence of the agreement to your terms, but enforceability depends on the wording and your jurisdiction. Have your attorney review the language before using it for real accounts.

## Search terms

customer credit application template, credit application form distributor, new customer credit form, trade credit application pdf, wholesale credit application, credit limit request form, p21 new customer setup, business credit application template

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