Why you should eliminate your paper-based credit application process

Why You Should Eliminate Your Paper-Based Credit Application Process

May 18, 2022Credit Applications

If you are still having your customers fill out paper-based applications for credit or during the process of setting up a payment plan, it may be time to rethink your process. Do you have a reason for not switching to digital, or is it simply that you haven’t considered changing what has been working for so many years?

Paper-based applications are not as common as they used to be, and even asking your customers to fill out a form, sign it, and scan it back to you can result in a time-consuming hassle for all parties involved just for a line of credit. There are several additional advantages of converting your credit application forms to a digital process and allowing your customers to apply for credit online.

1. Minimize Your Paper Waste

Perhaps the most obvious advantage of switching to digital applications is that you will no longer be printing, storing, or shredding large amounts of paper. This fact can save you and your employees time and save space in your workplace — plus your business will be greener as a result.

2. Become More Efficient

Searching for a paper credit application or trying to read a customer’s messy handwriting can turn into an administrative nightmare. Your staff will thank you for converting your application process to a digital one when they can simply run a search for a customer’s name, application status, or payment plan information with a few clicks.

On top of the workflows that are automated, its a win-win for your staff and your customers.

3. Secure Your “Paper Trail” 

Occasionally, an unscrupulous customer may back out of a loan agreement. A paper-based credit application may serve as a contract in these cases, but if you can’t locate it at a moment’s notice or find the copy with your customer’s signature on it, you’re in trouble.

An application that has been digitally signed is legally binding and more secure than a paper copy, and you can access it whenever you need it.

4. Find a Specific Digital Credit Application

Everyone has lost a stack of important documents from time to time. It’s easy, especially now that most documents are backed up digitally, to misplace or even accidentally throw away paper applications. Converting your paperwork to a digital credit application process allows you to keep your papers together in the virtual realm, and you can get in touch with your clients faster than before when you can access all of their information in one convenient location.

5. Attract More Customers

Filling out paper-based applications may not seem eventful to clients from older generations, but to younger people who are accustomed to digital forms, paper applications may make your company look outdated or out of touch. Show everyone that you are ready to do business — and work with clients — in the fast-paced, digital world that most of them are used to living in.

Learn More About Implementing a Digital Credit Application Process

Do you have questions or concerns about your old system of using paper-based applications? If you wish to convert your credit application process to a digital one and automate your processes, we can help.

Get in touch with Pencil for better small- to mid-size business solutions today.