Filling Out Credit Applications

Often when shippers reach out to a freight forwarder to handle their ocean freight shipping, the shipper could pay for it by credit. They could pay it as a COD, which is Cash on Delivery, but many shippers choose to go the credit route more often. If a shipper chooses to pay with credit, and they are shipping with a particular freight forwarder for the first time, then the shipper must complete a credit application prior to their freight shipment being fully booked and picked up. The credit application can be written or online.

Every freight forwarder’s credit application is unique. Generally speaking, the credit application might include some basic information such as the business name, address and all vital contact information. Then the credit application might ask for the shipper to identify their tax ID number and type of business. The credit application might ask the shipper if they are certified for C-TPAT (Customs Trade Partner Against Terrorism). Finally, most credit applications will request trade references and bank references on the form. The references must include full contact information as well.

Once the credit application is submitted, then the freight forwarder will determine if the business qualifies for credit or not. If qualified, then the container shipment process can begin. Credit applications might seem like a daunting task, but they have been a regular part of the international shipping experience for some time and they will continue to be used as long as there are shippers who wish to pay with credit.