Lowenstein Sandler and Credit Research Foundation Publish Updated Model Business Credit Application and Terms and Conditions for Trade Credit Professionals

In collaboration with the Credit Research Foundation, Lowenstein Sandler has released an updated edition of its Model Business Credit Application and Terms and Conditions of Sale, originally published in March 2023 and now revised to reflect industry developments through October 2025. Prepared by members of the firm's Bankruptcy & Restructuring Department, the white paper is designed to help companies strengthen their credit evaluation processes, enhance contractual protections, and reduce collection risk across the lifecycle of a trade credit relationship.

Authored by partners Andrew Behlmann and Bruce S. Nathan, and counsel Michael Papandrea, the resource offers a practical, customizable framework for preparing and implementing a comprehensive business credit application and robust terms and conditions of sale. It addresses essential information-gathering at the inception of the credit relationship; best practices for execution and authorization; and the legal terms that most effectively support collection and mitigate downside exposure in the event of customer distress or default.

The updated white paper includes model language and implementation guidance on topics such as customer due diligence; banking and loan disclosures; personal and corporate guaranties; Equal Credit Opportunity Act notifications; payment and invoice terms; enforcement and remedies (including acceleration, delinquency charges, attorneys' fees, and adequate assurance); setoff and recoupment; claims and returns management; warranty limitations; force majeure; choice of law and jurisdiction; jury trial waivers; credit card surcharges and payment structuring; and execution formalities. It also provides practical considerations for tailoring provisions to specific industries, transaction structures, and risk profiles.

The Model Business Credit Application and Terms and Conditions of Sale is intended as a reference framework for credit professionals and in-house teams, and it can be adapted to reflect industry practices and company-specific needs.

About Lowenstein Sandler LLP
Lowenstein Sandler is a national law firm with over 400 lawyers based in New York, Palo Alto, New Jersey, Utah, and Washington, D.C. The firm represents leaders in virtually every sector of the global economy, with particular emphasis on investment funds, life sciences, and technology. Recognized for its entrepreneurial spirit and high standard of client service, the firm is committed to the interests of its clients, colleagues, and communities.