Before credit is extended to any customer, steps should  always  be taken to determine the  credibility  of the applicant with  proper  due diligence. The more you know about your  potential customer  the easier it will be to navigate and determine risk. 

Being as your application form is a  contract, it specifies the rights and obligations of both the customer and creditor. This information can help  increase  sales of your company’s products and services to new customers at the start of their business and to existing customers as the business grows.

The process of acquiring the  properly  requested information from your potential customer can also be indicative of future dealings with your customer and should be considered in the credit review process.