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Our payment terms & credit policy

Our full terms and conditions can be found here.

1. Purpose

The purpose of this Policy is to outline procedures for:
- Opening new customer credit accounts and establishing customer credit limits
- Reviewing and varying customer credit limits; and
- Outlining the collection process from customers for goods sold on credit.

2. Scope

2.1 Invoices under $5,000 – invoiced in full before the commencement of the job. Payment is required upfront and prior to any work being completed.
2.2 Invoices over $5,000 – deposit for 50% of the estimated final invoice is sent, payment required before work commences. Balance due before release of any goods or services.
2.3 Trade Accounts – Customers that spent over $5,000 per month are eligible to apply for a trade account. All new customers must submit a credit application form and be approved prior to any trading terms being offered.

3. Purchase orders

3.1 If purchase orders are required, this information must be provided at the time of quote acceptance.
3.2 Please send all purchase orders via email to accounts@emroy.com.au.
3.3 Additional identifying information may be added after an invoice is generated by emailing the accounts team.

4. Procedure to open a new account:

4.1 All new customers must complete a credit application (Credit Application) in full.
4.2 The accounts team will review the customer’s credit worthiness by obtaining a credit report from an accredited provider for all accounts in excess of $20,000 credit limit.
4.3 The customer’s trade references, as detailed in the customer’s Credit Application, will be checked.
4.4 Any credit terms greater than $10,000 require a personal guarantee to be signed.
4.5 If the credit limit has been reached or exceeded, all orders will be placed on hold until the account has been paid in full.

5. Key factors in determining credit worthiness

5.1 The following factors when determining a customer’s credit worthiness:
- completed credit application;
- full compliance with our terms and conditions of trade by the customer;
- registration of business;
- favourable trade references (at least 2, preferably 3);
- length of time in business; amount of credit requested; validation process though accredited credit provider.
5.2 If the customer refuses to sign a Guarantee, the account is referred to the director for written approval to open without guarantee.

6. Relevant changes to existing customers

6.1 If a Relevant Change occurs with respect to an existing customer, a new Credit Application will be sent to the customer to complete in full and return to our account department, in which case the procedure for new customers outlined in clause 3 of this Policy will apply.
6.2 The Relevant Changes are:
- increase in credit limit;
- change of owner;
  change of directorship;
- change of trading name;
- any other circumstance determined by the director or accounts team.
6.3 If necessary, the accounts team may close the customer’s account upon the Relevant Change occurring.

7. Collection of overdue accounts

The following table outlines the actions that may be taken by accounts with respect to overdue accounts:

No. of days overdue

Action

1-2

Accounts may be put on hold. If account is on hold, accounts may offer customers ‘payment before delivery’ account after appropriate discussions between accounts and sales teams.

2-21

Accounts and sales team to follow up payment with customer.

21-30

Customer to be issued with a letter of demand from Emroy requiring payment within 7 days. Accounts team to reconsider credit limit.

30+

Matter referred to recovery team for legal review. Trade account subject to closure.