Questions & Answers: Processing Credit Requisitions | Retail Class 11 - Commerce PDF Download

Q1: What is Credit requisition?
Ans: A credit requisition is a request for credit. A valid credit requisition includes the amount and type of credit requested. It also includes the applicant’s credit score, report and means of security for the loan. Normally, credit limits are prescribed by the vendor.

Q2: What information is required for Credit Requisite Documentation? Or Explain the information required in credit requisition.
Ans: The credit requisition document requires information about the following:

• The desired items or services: Customers who are seeking credit facility must mention the details of desired items or services to be purchased on credit from the retail store.
• Possible vendors to fulfill order: It must contain the details of the possible vendors who can supply the required goods to the customer or buyer.
• Any budget quotations or proposals received: It should contain the information about the vendor’s name and other details of quotations or proposals received.
• Delivery instructions: The credit requisition should contain the information about delivery instructions of the goods.
• Capture initial capital details: The detailed information about initial capital must be provided in the credit requisition.
• Contact information: The buyers who want to purchase the goods on credit must mention their contact information in this requisition.
• Related accounting detail: It should also provide information about related details of accounting.

Q3: Discuss the Process of applications.
Ans: The following performance criteria must be followed for processing applications from retail customers for credit facilities.

• Identify the customer’s needs and provide credit facilities.
• Clearly explain about features and conditions of credit facilities to the customer.
• The customer should submit the application, and the requisition must be approved by the retailer.
• Promptly refer to difficulties in processing applications.
• Once approved, the requisitions go to the Sales Manager for authorization procedures.