A credit application must be completed for all credit accounts. No purchase orders or shipment requests shall be processed without written approval of such applications by the Finance Department.
The standard credit terms are Net 30 (thirty) days.
The Finance Department will establish a credit limit if an account qualifies. The criteria are based on the applicant’s credit strength, financial health, and forecasted purchase volume.
Any account that goes over 30 (thirty) days past due will be assessed finance charges per the credit application. Any account that ages over 60 (sixty) days past due will be placed on Cash in Advance terms regardless of the credit limit. The account will remain on Cash in Advance terms until the account regains good standing on all of its obligations AND is cleared by Finance Department.
When Cash in Advance terms are in effect, the account must pay by credit card. The payment must clear before the order can be processed.
For an account applying for a credit limit of $25,000 or greater, the account must provide a copy of reviewed financial statements for up to the last three years. For accounts applying for a credit limit of $200,000 or greater, owner and spouse’s personal guarantee is also required.
As deemed necessary by the Finance Department based on an analysis of an account’s financial health, an irrevocable standby letter of credit (LOC) may be required from the account.