Is it necessary to obtain a new credit application when a customer changes address?

The answer depends on whether or not anything else has changed in addition to the address, which can be difficult to find out without a new credit application.

If your customer has changed addresses because of a merger or acquisition, you will definitely need to process a new credit application, as the company’s financial health and structure may be different than when you originally evaluated its credit. If the customer’s “ship to” address has changed, but all other information remains the same, it is not necessary to obtain a new application unless you feel there is cause to do so.

Contact the customer and ask about the change. If it's just a new address, then you do not need to have them complete a new credit app.

Note that it is good practice to conduct periodic reviews of existing customers, to remain aware of their overall status and any changes in their fortunes for good or bad that might cause you to alter the amount of credit extended or terms, etc.

Have more questions? Submit a request

0 Comments

Please sign in to leave a comment.
Powered by Zendesk