Credit Account Agreement Template
A credit account agreement is the document a new customer signs to trade with you on credit — the place to capture identity, terms and the protections you'll rely on later.
What's included
- Understand the role of the credit account agreement at onboarding
- Capture accurate identity and contact details
- Bind the customer to your terms of trade
- Build in guarantee and consent where appropriate
- Know what to have reviewed before rollout
9 min read
The template
This general template onboards a customer onto a credit account. It pulls together identity, terms acceptance and optional protections. Replace each [placeholder] and tailor to your business.
CREDIT ACCOUNT APPLICATION & AGREEMENT Supplier: [Your business] ABN [ABN] 1. Applicant Legal name: [name] Trading name: [name] ABN/ACN: [number] Type: [company/sole trader/partnership] Registered/principal address: [address] Accounts contact: [name, email, phone] 2. Credit requested Requested limit: [$amount] Terms: [number] days from invoice 3. Trade references 1. [name / contact] 2. [name / contact] 4. Agreement to terms The applicant agrees to be bound by the Supplier's Terms of Trade (attached / at [URL]), including payment, interest, retention of title, recovery costs and default. 5. Personal guarantee (if a company) [Director name] guarantees the applicant's obligations (see attached guarantee). 6. Consent The applicant consents to the Supplier making credit enquiries and reporting payment conduct as permitted by law. Signed for the applicant: ____________ Name/Title/Date: ________
Why onboarding is the moment
Almost everything that helps you recover later is easiest to secure before the first invoice goes out: correct legal identity, accepted terms, a guarantee, and consent to make enquiries. Once an account is overdue, a customer has little incentive to sign anything. Getting the identity right is particularly important — recovering against the wrong entity wastes time and money.
How to use it
Attach your terms of trade and any guarantee so they are accepted in the one signing. Verify the ABN/ACN against the business name and keep the completed application on file. Set the credit limit deliberately rather than rubber-stamping the figure requested. For the payment-period and interest settings that feed clause 2 and your attached terms, use the free Payment Terms Generator.
Not legal advice
This is a general template and general information only — not legal advice. A credit account agreement ties together terms, guarantees and consents that each have legal effect. Have the package reviewed by a lawyer before you roll it out to customers.
Tips
- The credit account agreement captures everything at onboarding.
- Getting the legal identity right is critical for later recovery.
- Attach terms and any guarantee so they are accepted together.
- Set credit limits deliberately, not on request alone.
FAQ
Why verify the ABN or ACN?
So you contract with — and can later pursue — the correct legal entity. Suing the wrong party is a common, costly mistake. This is general information, not legal advice.
Do I need a guarantee on every account?
No. Guarantees are common for company customers and higher-risk accounts. Decide based on exposure and risk appetite.
What consents should the form include?
Typically consent to make credit enquiries and report payment conduct, within what the law permits. Have the consent wording reviewed.
Templates are a head start — not legal advice
Customise to your business and have important documents reviewed. Need to recover a debt? We can help.