We recently engaged a service provider to do a comprehensive review of our credit policy.
As a result, we have been advised that we have to bring all our credit applications in line with current legislation. We know that this is not ideal, but we will shortly be sending out credit applications to update all accounts that we currently hold.
We have also signed up with Credit Guarantee. What does this mean to you?
- We will be somewhat constrained by the credit limit agreed upon by Credit Guarantee.
- We are obliged to report our sales to all our customers to Credit Guarantee on a monthly basis.
- If there are challenges, as we all experience from time to time, we are obliged to report any extensions to credit terms to Credit Guarantee
While this sounds daunting and certainly caused us to pause before we signed up, the actual effect has been that we have been able, in most cases, to increase credit limits. A happy surprise.
We look forward to a continued great relationship with you.