Credit Policy of Suumaya Trans Logistics Limited
A credit policy is a set of guidelines that a company follows when granting credit to its customers. The credit policy outlines the terms and conditions under which credit will be extended, as well as the processes and procedures for evaluating and managing credit risk.
The purpose of this credit policy is to establish a framework for the responsible granting of credit by the logistics company. The policy aims to ensure that credit is granted only to those customers who are likely to repay it, and to minimize the risk of bad debt.
Credit will be granted only to customers who meet the following eligibility criteria:
The customer must have a good credit history and reputation.
The customer must provide proof of identity and address.
The customer must provide financial statements and other relevant information to support their creditworthiness.
The credit limit for each customer will be determined based on a credit risk assessment, which will take into account factors such as the customer’s financial position, payment history, and overall creditworthiness. The credit limit will be reviewed regularly to ensure it remains appropriate.
Customers are expected to make payments within the terms agreed upon at the time of sale. Late payments will incur interest charges and may result in the suspension of credit facilities.
The company will regularly monitor the creditworthiness of its customers and take appropriate action if their financial situation changes. This may include reducing the credit limit, requiring collateral, or requiring payment in advance.
This credit policy provides a clear and consistent framework for granting credit to customers. By following this policy, the logistics company can minimize its exposure to credit risk and ensure that it only extends credit to customers who are likely to repay it.