Receivable Solutions, Anywhere You Need Us An International Credit Application Presented by: David Greenberg.

Receivable Solutions, Anywhere You Need Us

An InternationalCredit Application

Presented by:David Greenberg

Receivable Solutions, Anywhere You Need UsCredit Application

Why you should obtain an application: The more information you have about your buyer, the

more collectible your account will become. False answers on a credit application can become

grounds for a case of credit fraud in some jurisdictions.

Credit applications do NOT make you less competitive.


Obtain a credit application to determine … Exact legal entity Precise party authorized to contract for the buyer Banking affiliations Personal Guarantees To set venue, forum and choice of law

Obtain a fully completed and signed credit application

Build in favorable trading terms and conditions

Do NOT let your sales personnel complete them

Credit ApplicationAny extension of credit is really a loan until you receive the money.

Receivable Solutions, Anywhere You Need UsCredit Application

Credit Applications are NOT a schmorgasbord!

They are the full course gourmet meal!

Customers and sales personnel don’t get to pick and choose which data will be supplied.


Due diligence: When the application has been fully verified, keep the

ORIGINAL in a safe and secure archive. When you get that application, don’t just file it!

Verify its accuracy!

Compare it to a current/fresh credit report.

Check the local country’s business register

• See: ABC-Amega’s Credit to Cash Advisorhttp://www.credit-to-cash-advisor.com/Resources/CompanyRegisters.html

Credit Application

Credit ApplicationSAMPLE CREDIT APPLICATION COMPANY NAME: __________________________________ PHONE: __________________________ STREET ADDRESS: ____________________________________ FAX: __________________________ CITY: _______________________________ STATE: _______ ZIP: ______ COUNTRY ______________ BILLING ADDRESS (IF DIFFERENT FROM ABOVE):_____________________________________________________________ CITY: _______________________________ STATE: _______ ZIP: ______ COUNTRY ______________ EMAIL: _______________________________ CREDIT LINE SOUGHT: __________________________ COMPANY IS A: CORPORATION PARTNERSHIP PROPRIETORSHIP OTHER/SPECIFY CORPORATE REGISTRATION NO. __________________V.A.T. NO._______________ANNUAL SALES_____________ Authorized Signatories per Official Government Company Registration Documents:: Name (exactly as on the register) ___________________________ Title _________________________ Name (exactly as on the register) ___________________________ Title _________________________ ARE FINANCIAL STATEMENTS AVAILABLE? YES NO # YEARS IN BUSINESS

________________NOTE: IF IN BUSINESS LESS THAN FIVE YEARS, YOU MUST COMPLETE PERSONAL GUARANTEE

Credit ApplicationCOMPANY DIRECTORS/ OFFICERS/ PRINCIPAL NAME 1: _________________________________________________TITLE: ___________________ HOME ADDRESS: _________________________________________ PHONE: __________________ NAME 2: _________________________________________________TITLE: __________________ HOME ADDRESS: _________________________________________ PHONE: __________________ NAME 3: _________________________________________________TITLE: ____________________ HOME ADDRESS: _________________________________________ PHONE: ____________________ BANKING DETAILS BANK NAME: _________________________________ ACCOUNT #: ____________________________ Beneficiary Name: ___________________________________________________________________ BRANCH ADDRESS: ___________________________CITY/STATE/ZIP: _________________________ BANK PHONE_____________________________ Swift Code: _______________________________ IBAN Number: _____________________________

Credit Application

TRADE REFERENCES VENDOR 1: ______________________________ CONTACT: ___________________________________________ PAYMENT ADDRESS: ______________________ CITY/STATE/ZIP: ______________________________________ PHONE: _____________________ FAX: _______________________ACCOUNT #: _________________________ VENDOR 2: _____________________________ CONTACT: ___________________________________________ PAYMENT ADDRESS: ______________________ CITY/STATE/ZIP: ______________________________________ PHONE: _____________________ FAX: _______________________ACCOUNT #: _________________________ VENDOR 3: _____________________________ CONTACT: ___________________________________________ PAYMENT ADDRESS: ______________________ CITY/STATE/ZIP: ______________________________________ PHONE: ____________________ FAX: ________________________ACCOUNT #: _________________________

(Continued on reverse)

CONDITIONS (TERMS ARE NET 30 DAYS UPON CREDIT APPROVAL) TERMS OF SALES, INCLUDING TERMS OF PAYMENT AND CHARGES, FOR EACH PURCHASE ARE

AGREED TO BE THOSE SPECIFIED ON THE FACE OF EACH INVOICE. THE CUSTOMER HEREBY AGREES TO PAY ALL COSTS OF COLLECTION OR LEGAL FEES SHOULD SUCH ACTION BE NECESSARY DUE TO NON-PAYMENT. THE ABOVE INFORMATION IS WILLINGLY SUPPLIED AND THE CREDITOR IS AUTHORIZED TO CONTACT THE ABOVE BANK AND TRADE REFERENCES IN ORDER TO ESTABLISH THE CREDITWORTHINESS OF THE ABOVE NAMED COMPANY. IF THE APPLICANT IS NOT A CORPORATION, THE CREDITOR IS AUTHORIZED TO OBTAIN CREDIT REPORTS ON THE PROPRIETORS, PARTNERS OR PRINCIPALS. SHOULD A CREDIT AVAILABILITY BE GRANTED BY THE CREDITOR, ALL DECISIONS WITH RESPECT TO THE EXTENSION OR CONTINUATION SHALL BE IN THE SOLE DISCRETION OF THE CREDITOR. THE CREDITOR MAY TERMINATE ANY CREDIT AVAILABILITY WITHIN ITS SOLE DISCRETION.

DISPUTES: ANY DISPUTE OR CONTROVERSY ARISING FROM THIS AGREEMENT WILL BE

RESOLVED BY ARBITRATION BY THE AMERICAN ARBITRATION ASSOCIATION AT ORANGE COUNTY, CALIFORNIA. THE LANGUAGE OF THE ARBITRATION SHALL BE ENGLISH. THE NUMBER OF ARBITRATORS SHALL BE ONE. THE PARTIES AGREE THE AMERICAN ARBITRATION ASSOCIATION’S RULES FOR ARBITRATION SHALL APPLY. THE LAWS OF THE UNITED STATES OF AMERICA SHALL APPLY TO AND BE USED IN ANY RESULTING ARBITRATION. THE ARBITRATOR’S AWARD SHALL BE BINDING AND FINAL. THE LOSING PARTY SHALL PAY ALL ARBITRATION EXPENSES, INCLUDING ALL ATTORNEY’S FEES.

I HAVE READ AND UNDERSTAND THE ABOVE TERMS AND CONDITIONS, AND HEREBY AGREE TO

THEM: APPLICANT’S NAME: _______________________________________ TITLE: ____________________ DATE: ______________________ APPLICANT’S SIGNATURE: _________________________________

Credit Application

FOR PROPRIETORS, PARTNERS, & S-CORPORATIONS I AUTHORIZE THE SELLER AND THEIR ASSIGNS TO OBTAIN A CONSUMER CREDIT REPORT ON MY

CREDIT HISTORY. DATE: ________________ APPLICANT’S SIGNATURE: ________________________________ PERSONAL GUARANTEE THE UNDERSIGNED, FOR CONSIDERATION DO HEREBY INDIVIDUALLY AND PERSONALLY

GUARANTEE THE FULL AND PROMPT PAYMENT OF ALL INDEBTEDNESS HERETOFORE OR HEREAFTER INCURRED BY THE ABOVE BUSINESS. THIS GUARANTEE SHALL NOT BE AFFECTED BY THE AMOUNT OF CREDIT EXTENDED OR ANY CHANGE IN THE FORM OF SAID INDEBTEDNESS. NOTICE OF THE ACCEPTANCE OF THIS GUARANTEE, EXTENSION OF CREDIT, MODIFICATION IN TERMS OF PAYMENT, AND ANY RIGHT OR DEMAND TO PROCEED AGAINST THE PRINCIPAL DEBTOR IS HEREBY WAIVED. THIS GUARANTEE MAY ONLY BE REVOKED BY WRITTEN NOTICE WHICH SHALL BE SENT TO THE CREDITOR’S CREDIT OFFICE BY CERTIFIED MAIL. ANY REVOCATION DOES NOT REVOKE THE OBLIGATION OF THE GUARANTORS TO PROVIDE PAYMENT FOR INDEBTEDNESS INCURRED PRIOR TO THE REVOCATION. I AUTHORIZE THE SELLER AND THEIR ASSIGNS TO OBTAIN A CONSUMER CREDIT REPORT AND TO CONTACT MY REFERENCES AS NECESSARY. AS GUARANTOR, I AM ALSO BOUND BY THE ABOVE ARBITRATION CLAUSE.

GUARANTOR’S NAME: _________________ SIGNATURE: ________________________________ HOME ADRESS: ____________________ CITY/STATE/ZIP: _______________________________ DATE: _________________________ TAX I.D. OR S.S. NO. _______________________________

Credit Application


Credit Application

Handling Objections in Latin America/BRICCustomers may tell you it is not customary for them to see a

request for a credit application or that other vendors do not require them.

Tell them any extension of credit is essentially a loan until the credit has been paid.

Would they expect to go to their own bank to request a loan without filling out an application? Of course not! They should understand it is the same concept with credit terms.

orPlay “Blame the Banker” or “Blame the Credit Insurance

Company” (my apology to those bankers & insurers in the audience here).

Simply tell your customer you have no choice – the Credit application is a requirement of the trade financing bank or the credit insurance company.

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Credit Application

Efficacy of special clauses in Latin America/BRICPersonal Guarantees are enforceable.

Do your due diligence on credit worthiness of guarantorsThis can give you deeper pockets to bail you out if things

go wrongArbitration clauses are enforceable*

This can mitigate differences in legal systems & languageCan provide for less cost overall than litigationCan be on your own home turf

If possible, do these special clauses bilingually to avoid any misunderstanding.

*1958 NY Convention on Enforcement of Foreign Arbitration Awards

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David E. Greenberg, AVP International OperationsABC-Amega Inc1100 Main StreetBuffalo NY 14209-2356Tel. +001-716 – 878 – 0443Fax. + 001-716 – 878 – [email protected]