When a business decides whether to extend net-30 or net-60 terms to a new B2B customer, it may run a soft credit inquiry on the business principals or the entity itself. Unlike hard inquiries, which appear on credit reports and can temporarily lower scores, soft inquiries aren't visible to other creditors and don't impact the score. They give the creditor enough information to make a credit decision (payment history, existing obligations, derogatory marks) without penalizing the customer for the inquiry.

Soft inquiries fit at account opening and when considering a credit limit increase for an existing customer. For large credit limits, they aren't a substitute for a full credit application. Under $10,000, a soft inquiry plus trade references is often enough. Above that, most businesses require a formal signed credit application, which usually authorizes both soft and hard inquiries.

In AR management, soft credit inquiries help separate new customers likely to pay on time from those presenting elevated collection risk. A new customer with a thin credit file or recent derogatory marks may be offered shorter terms (net-15 instead of net-30), a smaller credit limit, or a required deposit. Using credit information proactively at account opening is much cheaper than collecting from a customer who can't pay.