Credit Approval Process Checklist ( FINANCE )

This checklist ensures that all necessary steps are followed for approving credit applications to minimize financial risk and ensure proper documentation.

• Receive Credit Application

  Collect the completed credit application form from the prospective client.

• Verify Client Information

  Check the accuracy of the client's information provided in the application, including contact details and business structure.

• Conduct Credit Check

  Perform a credit check using a reliable credit reporting agency to assess the client's creditworthiness.

• Review Financial Statements

  Analyze the client's financial statements for the last two years to understand their financial health.

• Assess Payment History

  Evaluate the client's payment history with previous vendors to ascertain reliability.

• Determine Credit Limit

  Based on the findings from the credit check and financial analysis, establish an appropriate credit limit for the client.

• Obtain Management Approval

  Submit the credit application and supporting documentation to management for final approval.

• Notify Client of Decision

  Inform the client of the credit approval or denial decision and provide any necessary next steps.

• Document the Process

  Ensure that all documentation related to the credit application and approval process is stored in the client's file for future reference.