If you have sought our assistance in the making of effective Contracts because your business provides goods or services to your Customers on credit, you should now endeavour to obtain a completed Credit Application from all of your existing and recurring Customers.
The obtaining of a signed Credit Application will ensure that:
- Your Customer has acknowledged prior disclosure and acceptance of the Terms & Conditions of Trade, and
- The Terms & Conditions of Trade will be incorporated into Contracts that you make with the Customer in future.
We suggest that you use the following Letter Template to submit Credit Applications and disclose your new Terms & Conditions of Trade to your existing recurring Customers.
Please note that we have recently reviewed our Terms & Conditions of Trade. Our new Terms & Conditions of Trade will apply to all future Orders and Agreements with your business.
We enclose a copy of our Terms & Conditions of Trade for your attention. Please take the time to read them carefully.
We also enclose a Credit Application. Please complete, sign and return the Credit Application to confirm your receipt and acceptance of our Terms & Conditions of Trade. Your prompt return of the signed Credit Application is appreciated and will avoid delays associated with the completion of a Credit Application at the time of your next Order.
If your business has an existing Credit Account with us, please note that the enclosed Terms & Conditions of Trade will apply to all Orders submitted after the date of this letter.
Please do not hesitate to contact us should you have any questions.
You should keep copies of the letters that you send out in your Customer files as evidence of the fact that disclosure of your Terms & Conditions of Trade was made should any dispute about such disclosure or incorporation arise in future.
As your business receives enquiries for new Customers or recurring Orders from a Customer that has not previously signed or accepted a Credit Application, provide a Credit Application to the Customer and insist that it be completed, signed and returned.
What to do with completed Credit Applications
Upon receipt of a completed Credit Application consider making enquiries with a Credit Reporting Agency and Trade References provided for the purpose of assessing the Customer’s history and creditworthiness. The signed Credit Application includes the consents that your business requires to obtain a Credit Report in relation to the Customer.
The Credit Application allows you to specify payment terms for a particular Customer different to those for Customers who do not have a Credit Account with your business. If you are prepared to extend credit to the Customer, include the payment terms that you are prepared to offer and the credit limit you approve for the Customer at the bottom of the Credit Application, then date and sign the acceptance of the Credit Application and send a copy to the Customer for their records.
Credit Applications & Quotations
When making subsequent Contracts with Customers who have submitted an accepted Credit Application you should still utilise the Quotation Template to create certainty in relation to the price and description of goods or services to be supplied in respect of a particular Contract.