COMPANY COMMERCIAL CREDIT POLICY
PURPOSE
To define the requirements for establishing and maintaining credit lines and payment terms for Campbellfield Concrete & Mini-Mix’s (CCMM) account customers. This Policy applies to all sales of CCMM products to account customers in Victoria. All organisations within CCMM responsible for the sale, contract approval, order acceptance, scheduling and shipment of products must adhere to the policy and guidelines below.
POLICY
In order to facilitate the flow of orders and shipment of products, it is CCMM Policy that credit will be extended to all account customers who demonstrate both the ability to pay and history of timely payments of debts. The credit department will evaluate all new account customers to determine what payment terms and methods will be required and what level of credit will be established. Credit checks will be performed through CreditorWatch. The credit department establishes set limits for all active new account customers.The credit limit CCMM gives your company to trade with, may or may not be what you were expecting, however this limit may be requested to be raised once a credit history (minimum 3 months) has been established with us. Purchases which exceed the established credit limit or which will result in the account balance exceeding the limit will have approval of the credit manager before shipment. Such limits are based on trade information and financial information from CreditorWatch.
The credit department will also periodically review and re-evaluate payment terms and credit limits of existing customers to support new customer requirements and to manage risk as financial and business conditions change. In its day-to-day operations, the credit department will consistently adhere to all company policies regarding fair and equitable treatment in customer communications and relations.
RESPONSIBILITY
The credit manager is responsible for managing the credit review and approval process and accounts receivable balance to minimise the collection exposure in accordance with the overall operational and financial objectives. The credit manager establishes limits of up to $100,000 and may delegate a portion of this to other department members. Higher limits are approved by the Directors.
It is the responsibility of the credit department to authorise all communications with their managers and customers regarding credit acceptance status, credit limits and payment terms and methods.
When accounts cannot be collected with normal means, the credit manager authorises the use of a Collection Agency or Attorney.
TERMS OF SALE
The standard terms of sale are Net 30 EOM (CCMM will issue a statement on the first day of each month, also issuing invoices throughout that month by email. The balance is due and payable prior to the 10th of the month. EG, purchases during June are summarised on a statement as of June 30 and are due prior to July 10.
Accounts forty (40) days or more past due will be placed on credit hold. Additional shipments will have the approval of the credit manager or will be shipped only on a C.O.D basis.
Credit Limits are enforced as soon as the new account has been approved.
When purchases exceed the established credit limit or which will result in the account balance exceeding the limit due to pre-purchases. The full amount of your account or minimum of 50% of your credit limit is payable immediately.
Accounts exceeding their credit limit and do not place a minimum of 50% payment against their account, will be placed on credit hold and risk their credit limit being reduced. Additional shipments will have the approval of the credit manager or will be shipped only a C.O.D basis.
The credit manager has the responsibility for all credit and collection functions. The credit manager will keep the sales department and all managers informed of all actions involving customers.
Accounts wanting to increase their credit limit will need to have at least 3 months credit history with CCMM. To be able to apply for a credit limit increase the account needs to be paid in full, an email or letter on the company letterhead needs to be sent to the credit department requesting the amount for increase. Be aware this does not automatically mean your credit limit has been increased. The credit manager will review your credit history with CCMM and return a notification if the increase has been approved or not.
COLLECTION
We strive to have a consistent and courteous approach to collection. All customers are called when their account is due or after their account is due or over their credit limit by a CCMM representative. Emails/Letters are sent to all Directors of the company to notify them of the account due or over credit limit.
If no payments are received after 5 - 10 business days, you will receive letters/emails of demands, (Reminder Notice, Final Notice, Letter of Demand, 60days Overdue, 90days Overdue). If there is still no response, the account is considered for legal action, a default will be placed against the company, as well as any caveats, through CreditorWatch.
In the case of bankruptcies, the credit department files proofs of claim. The department represents our company with creditor committees and coordinates activities with attorneys.