This policy outlines the requirements for establishing payment terms with the company's customers, as well as the monitoring of those terms. The policy also notes alternatives to be made available to those customers that do not qualify for company credit.
This policy applies to all sales made within the Republic of India, excluding sales to the central government and state governments.
Customer – will refer to all entities and persons, living or otherwise who make purchases on the website sourcegoodfood.com.
Credit Team – The persons associated with sourcegoodfood.com who are authorised on behalf of sourcegoodfood.com to take decisions with respect to extending credit to customer.
Company – SourceGoodFood.com and its parent company and its affiliates
Points - Credit reward points accumulated with each transaction.
The company will extend credit to customers if they meet its threshold criteria for the granting of credit. The basic form of credit is a maximum credit of INR 3,00,000, with no security interest for customers and is subject to points accumulated. The maximum credit can be expanded with the approval of the credit team and to the maximum extent of points accumulated. In situations where a customer's ability to repay is in question, a personal, corporate, or bank guarantee may be required. All terms are net 30 days, with no exceptions if a longer payment term is requested.
Each point is equivalent to INR 1 credit for a fixed period 30 days from the date of invoice for which the point was utilised.
The credit team will review the credit applications of all new customers to determine their worthiness to receive credit, and the amount of that credit. The eligible credit level is visible to the customer in the accumulated credit reward points. The credit level may be reduced if a customer has a low credit score on the credit report, if it has been formed within the past two years, if the customer companies current ratio is less than 1:1 or has poor payment / repayment history.
The credit team will periodically review the repayment history of existing customers to determine whether their existing credit levels are reasonable, or need to be revised. This review shall also be conducted whenever business conditions warrant a general retraction or expansion of credit levels.
The terms of sale offered to customers are standardized under existing sales programs and promotions. The credit team will adjust standard terms of sale to maximize sales outcomes, though such changes require the approval of the credit manager. The basic underlying sales terms offered to customers is net 30 days.
Only, the credit team is authorised to extend credit to customers, and to communicate with them regarding their credit status. The credit team is tasked with instructing customers regarding their payment responsibilities.