First, businesses should be proactive and keep an eye out for changes to a customer’s address, ownership and employee turnover. All three can be a good or bad sign and it is the job of the credit department to determine which it is. Second, it is good practice to conduct periodic reviews of existing customers, to remain aware of their overall status and any changes in their fortunes for good or bad that might cause you to alter the amount of credit extended or terms, etc.

If your customer has changed addresses because of a merger or acquisition, you will definitely need to process a new credit application, as the company’s financial health and structure may be different than when you originally evaluated their credit. If the customer’s “Ship to” address has changed, but all other information remains the same, it is not necessary to obtain a new application unless you feel there is cause to do so.

Contact the customer and ask about the change. If it’s just a new address, then you do not need to have them complete a new credit app.