Steplane › Guides › Credit application template
Updated 19 October 2026 · Written by Paul, founder of Steplane, a logistics process specialist with over 13 years in logistics, including at some of the biggest freight forwarders in the world.
In short: A freight credit application collects the customer's exact legal name and registration number, VAT number or EIN, contacts, bank and trade references, the limit and terms requested, consent to credit checks and a signature on your trading terms. Then check the company in the official register, check the VAT number or tax ID, take a credit report, call the references, and set a written limit and stop-credit rule.
A credit application is not paperwork for its own sake. A freight company pays carriers, agents and often duties before the customer pays it, so every job on credit is a loan. The form gives you the exact legal entity to invoice, the customer's consent to check it, and a signature on your trading terms.
Below: the fields to collect, the checks for Europe, the UK and the US, how to set limits, stop-credit rules, and a free Word template.
Each field has a purpose. If you cannot say what you will do with a field, leave it out: long forms come back half empty.
| Field | Why you need it | How you check it |
|---|---|---|
| Exact legal name and registration number | Decides who you can claim from if they do not pay | Company register extract (EU national register, UK Companies House, US state business search) |
| VAT number (EU, UK) or EIN (US) | Correct invoicing and VAT treatment; identity check | VIES (EU), HMRC VAT number check (UK), IRS Form W-9 (US) |
| Registered and invoice address | Legal notices go to the registered address; invoices to accounts payable | Compare with the register. A mismatch is a question, not always a problem |
| Date established and legal form | New companies and sole traders carry more risk | Register entry |
| Owner or director name | Who signs, and who may give a personal guarantee | Register list of directors or officers |
| Accounts payable contact | Who you chase. Saves days on the first overdue invoice | Call the number from the company website or register, not from the email |
| Credit limit and terms requested | Starting point for your decision | Compare with expected monthly spend |
| Bank and two trade references | Real payment behaviour with other suppliers | Call them. Ask: how long trading, usual limit, pays on time? |
| Signed acceptance of your trading terms | Your terms (payment, liability, lien, set-off) only apply if agreed before the job | Signature, name and version of the terms on the form |
| Consent to credit checks | Lets you take a credit report and call references | Signed declaration |
| Personal guarantee (optional) | For new, small or weak companies, a person stands behind the debt | Signed by the guarantor; take local legal advice on the wording |
If you do customs work, add the EORI number (EU, UK) and ask how duty and import VAT will be paid. Duty paid on the customer's behalf can be larger than your freight bill.
Run the same five checks everywhere. Only the tools change.
| Check | EU | UK | US |
|---|---|---|---|
| Company exists and is active | National business register. Many can be searched from the EU e-Justice portal | Companies House: status, officers, filed accounts, overdue filings | Secretary of State business search in the state of registration |
| Tax identity | VAT number in VIES. Keep a dated screenshot or the consultation number | HMRC check of a UK VAT number | Signed IRS Form W-9 with the legal name and EIN |
| Credit report | Business credit report from a credit reference agency in the customer's country | Business credit report; filed accounts at Companies House | Business credit report; payment history with other suppliers |
| Trade references | Two suppliers, ideally in transport | Two suppliers | Two suppliers; for brokers, ask other carriers or forwarders |
| Bank reference | Optional; slow in many countries | Optional | Optional; confirms the account exists |
| Warning signs | Very new company, recent change of directors or address, free email domain | Overdue accounts or confirmation statement, recent change of directors | Recently formed entity, address is a virtual office, contact details differ from the record |
A valid VAT number or an active registration only proves the company exists. It says nothing about whether it pays. Keep the date and result of every check in the customer file.
Set the limit from what the customer will owe you at its peak, not from what it asks for. In freight, exposure builds up before the first invoice goes out.
| Customer risk | Example terms | Example limit rule | Review |
|---|---|---|---|
| New, no credit history, or weak report | Prepayment or cash before release | No credit until three jobs paid | After 3 jobs |
| New, good report and references | 14 days | One month of expected billing | After 3 months |
| Established, pays on time | 30 days | Peak exposure as calculated above | Every 12 months |
| Duties and import VAT paid for the customer | Pay before release or own deferment account | Separate from the freight limit | Each shipment |
The legal frame:
The example rules are starting points. Set your own and write them down.
Freight bad debt often grows because the next load still goes out while the last invoice is unpaid. Agree the rules inside your company before you need them, and tell the customer in your terms.
| Trigger | Action | Owner | Record |
|---|---|---|---|
| Invoice 1 day overdue | Reminder email to accounts payable | Finance | Reminder in the customer file |
| Invoice 7 days overdue | Phone call; ask for a payment date | Finance | Call note with promised date |
| Balance over the limit | New bookings need finance approval | Finance | Approval note on the job |
| Invoice 15 days overdue, or promised date missed | Stop new bookings. Tell sales and operations the same day | Finance | Customer status = on stop |
| Cheque or direct debit returned | Stop credit; prepayment only until cleared | Finance | Status change with date |
| Change of owner, name, address or bank details | Repeat the credit checks before the next job | Finance | New dated checks |
| Insolvency news, or court claims by other suppliers | Stop credit; check what goods you still hold | Management | Decision note |
If your trading terms give you a lien, it only helps while you still hold the goods. Check your terms before releasing cargo to a customer who is on stop. Disputed invoices should go to a separate list so they do not hide real late payment.
Download the credit application (Word)
Two pages, editable in Word. Every field is in [brackets] so you can replace it with your own wording.
Check the guarantee wording with a local lawyer before you use it. Rules on personal guarantees differ by country and state.
The full process from new customer to first job on credit: process and rollout plan, new customer form, company and credit check, customer register (Excel) with your limits and overdue days, and a trading terms summary. EU and US versions.
Get the customer onboarding and credit kit
€49 (about $55) per kit, one-time. EU and US versions. Any 3 kits €99, all 6 kits €199. 14-day money-back guarantee.
The exact legal name and registration number, VAT number or EIN, addresses, an accounts payable contact, the limit and terms requested, bank and trade references, consent to credit checks, and a signature accepting your trading terms. Add an optional personal guarantee for new or small customers.
Check the company in the official register, check the VAT number in VIES (EU) or the tax ID on a W-9 (US), take a business credit report and call two trade references. Record the date and result of each check.
Base it on peak exposure: monthly billing times the days money is out (payment terms plus the days from loading to invoice), divided by 30. Start lower for new customers and raise it after a few months of on-time payment.
Common terms are 14 to 30 days for established customers and prepayment for new or risky ones. In the EU, business-to-business terms over 60 days are only allowed if expressly agreed and not grossly unfair.
When an invoice passes your agreed overdue limit, when the balance goes over the limit without approval, when a payment is returned, or when the owner or bank details change. Write the rule down and tell sales and operations the same day.
Ask for one when the company is new, small, or its credit report is weak. It is optional on the template. Rules on guarantees differ by country and state, so have the wording checked locally.
No. VIES only confirms that the VAT number is valid. It says nothing about whether the company pays its bills. You still need a credit report and references.
Answer simple questions about how your company works today. You get the process map with owners, triggers and records, the money leaks with estimates and a written procedure. Free, no sign-up.
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