The credit application — the document that captures a new customer's legal entity, directors, agreed terms and personal guarantee — has traditionally been a paper process. It has been emailed as a PDF, printed, signed by hand, scanned and filed. That process still works, but it introduces friction, delay and the risk of an incomplete return. Electronic credit applications solve all three.
What an electronic credit application is
An electronic credit application is a web-based or software-delivered form that a new customer completes online. It captures the same information as a paper form — legal entity name, ACN/ABN, directors, address, trade references, agreed credit limit — and collects a legally binding electronic signature under the Electronic Transactions Act 1999 (and its state equivalents). The completed application is stored digitally, timestamped and linked to the customer record.
Why they outperform paper
Three advantages stand out. First, completion rate: a digital form can enforce required fields before submission, which means it is returned complete. A paper form can be returned unsigned, undated or with fields left blank. Second, speed: a digital application can be completed and returned the same day, compared to days or weeks for a paper round trip. Third, storage: digital applications are searchable, retrievable and not vulnerable to physical loss. When an account goes bad two years later, the credit file is a click away.
Are electronic signatures legally binding?
Yes, in the relevant circumstances. The Electronic Transactions Act provides that a signature requirement can be met electronically where the signatory consents to signing electronically and the method reliably identifies the person and their approval. Common platforms — DocuSign, Adobe Sign, and purpose-built credit platforms — are designed to meet this standard. The key is that the platform records the signatory's identity, IP address, timestamp and consent, and that your terms of trade explicitly permit electronic execution.
What to look for in a platform
An audit trail is non-negotiable: the platform should produce a certificate of completion that records who signed, when, from where, and on what device. Storage should be secure and long-term — you need to retrieve the application years after it was signed. Integration with your accounting or CRM system reduces double-handling.
If your credit application process is still paper-based, the upgrade is low-cost and the return in documentation quality is significant. Talk to Merion about how a stronger credit application supports recovery outcomes.