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What Can I and Should I Ask a Potential Customer's Bank Officer?
By Michael Dennis and Steven Kozack
Question: What can I ask and what should I ask a bank officer about a customer applying for open account terms?
Answer: You should ask for the following information about a customer or applicant:
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Date account opened
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Average balance
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Any NSF checks? If so, how many?
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Is there Overdraft protection?
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Is there a Line of Credit? If so, for how much?
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How long has the Line of Credit been in existence?
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Any additional comments?
You could ask a number of questions in addition to the standard questions although I doubt many bank officers would answer these questions. Here are some examples of probing questions:
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What is the customer's credit limit?
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How much do they owe?
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Have you increased or decreased the line in the last two years? By how much? Why?
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When was the account last reviewed?
When is the next review scheduled? -
What are your impressions of the debtor company?
Do you anticipate the company will be able to pay our invoices as they come due? -
Do you expect any problems when their line of credit comes up for renewal?
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