Credit Application Review Checklist

Before you start

An application is only useful if it is complete and truthful. Have the supporting tools open so you can verify as you read, rather than approving on trust and checking later.

• The fully completed and signed application in front of you.
• ABN Lookup and the ASIC register open in your browser.
• A note of your credit policy limits so you know what needs escalation.
• Two contact channels for any trade references the applicant has listed.

Step 1 — Check completeness and authority

1. Confirm every mandatory field is filled — blanks are where bad debts hide.
2. Check the application is signed and dated, and that the signatory has authority to bind the business.
3. Confirm the entity name, structure and ABN are stated clearly and consistently throughout.
4. Make sure your trading terms are referenced and that the applicant has agreed to them.
5. If a personal guarantee is required, confirm the guarantee section is completed and signed separately.

Step 2 — Verify the entity

1. Match the ABN to the legal name on ABN Lookup and confirm the GST status.
2. For companies, confirm the ACN, registration status and directors on ASIC.
3. Check the entity is not deregistered, under external administration or recently changed names.
4. Confirm the registered and trading addresses look genuine, not a virtual office with no substance.
5. Note how long the business has traded — a brand-new entity carries more risk than an established one.

Step 3 — Assess references and standing

1. Call at least two trade references and ask about limit, terms, payment behaviour and any disputes.
2. Be wary of references that are too glowing or that the applicant is unusually keen to provide.
3. Consider a bank reference or a commercial credit report for larger requested limits.
4. Compare the requested limit to the estimated spend — a request far above need is a flag.
5. Run the application against your scoring or risk rules and record the recommended limit.

Common mistakes

• Approving an incomplete form because the salesperson is in a hurry.
• Accepting trade references at face value without actually phoning them.
• Granting the full requested limit when the spend does not justify it.
• Missing that the signatory has no authority to commit the business.
• Filing the application without recording who approved what and why.

A careful review here prevents most write-offs later. Use the Merion tools to support your decision, and document your reasoning. This is general information, not credit or legal advice — apply your own policy and seek professional input on material exposures.