Maintaining a 30 Day Trading Account

All accounts operate on a strict 30-day net basis and payment is required within 30 days from the end of the month. (Credit Application form Appendix B)

Under our Standard Conditions of Supply, where you are overdue with any payment, Climat Trade Centre Victoria reserves the right to:

• • change you to a cash on delivery account, requiring you to pay for products before they are supplied

and

• terminate or suspend performance of the whole or any outstanding part of any order.

In its sole discretion and for the time being, Climat Trade Centre Victoria will typically follow the procedures set out in this section in respect of credit accounts.

In the event the credit limit (as granted by Climat Trade Centre Victoria) in dollar value is reached prior to the expiry of the 30 day accounting period, then we may request an “on account” payment to retain the account within the limit and so avoid possible disruption to supply.

Orders placed on any account which have an invoice unpaid within its time limit or which is over the approved maximum credit limit will automatically fail credit and unless extenuating circumstances exist or satisfactory arrangements for payment are agreed, the orders will be held until payment is received. Every effort is made by Climat Trade Centre Victoria credit staff to contact your accounts payable staff within one hour of your failed order to arrange for payment of the account and release the hold of the order.

Accounts unpaid at 45 days will have future credit suspended until all overdue amounts are paid and Climat Trade Centre Victoria can be convinced of your ability to meet our credit requirements. This may require a complete review of your account performance with other suppliers, and analysis of financial information. Provision of a bank or personal guarantee may be required to keep your account open.

If negotiations to achieve settlement of overdue accounts fail, and after consultation with the Specialist State Sales Manager, unpaid accounts beyond 90 days may be placed for collection through the Courts. However please note that before legal action is commenced in most cases a final notice will be dispatched allowing an additional 7 days to pay.

To ensure that the reconciliation of accounts is both simple and straight forward, under no circumstances should an invoice be short paid by you.

The above does not constitute any change in policy, it is merely clarification of procedures to avoid any misunderstanding of our credit operations.