Credit Accounts

Credit Account Process

Setting Up a Client Credit Account

• Q1: My client would like a credit account. What should I do first?

  • A: That's great! Moving a client to a credit account can make their ordering process much easier, and it's recommended for clients who request it.

• Q2: What information do I need to gather from a client to apply for a credit account?

  • A: You need to collect the following details from them:

    • Email address

    • Company name

    • Registered Postcode

    • Company number

The Credit Account Approval Process

• Q4: What happens after I submit the client's details for a credit account?

  • A: The team will conduct a credit check on the client.

• Q5: What credit score is required for a client to be approved for a credit account?

  • A: The client must have a strong credit score of 51 or above. If their score is low, there's a risk of financial loss or ongoing debt chasing.

• Q6: What is the process if the client's credit score is strong enough?

  • A: If their score is strong, we will send two forms to the client: a Direct Debit (DD) mandate and a Credit Application Form.

• Q7: What does the client need to do with these forms?

  • A: The client needs to complete and sign both forms and send them back 

• Q8: Is there any other action required from the client regarding the DD Mandate?

  • A: Yes, the client also needs to post the original signed DD Mandate to us at the address below:

    • Route 1 Print
    • Unit A Brookfields Park,
    • Manvers Way,
    • Manvers,
    • Rotherham,
    • S63 5DR

• Q9: What are the final steps to activate the credit account once all forms are processed?

  • A: On the 1st working day of the month, we will double-check that all forms have been correctly submitted. These forms will then be emailed to the Accounts department. After this, we will update the client's account status in SAMS from "payment upfront" to "Credit Account."

Credit Account Payment Terms & Ordering

• Q11: How do the payment terms work for a credit account?

  • A: Payment terms are 30 Days Direct Debit (30 Days DD).

• Q12: Can you provide an example of how the 30 Days DD terms function?

  • A: If a client's account is switched to credit on February 1st, they will not pay for any orders placed during February until March. They will receive a statement around March 5th detailing all orders from February. Clients then have an opportunity to contact us to dispute any orders or order values. Following this, the payment will be collected via Direct Debit from their registered bank account on March 21st.

• Q13: Does having a credit account change the way clients place their orders?

  • A: No, clients will order in exactly the same way as before. The only difference is that the 'Card/PayPal' payment options will be removed from their checkout, and the only option available will be 'Raise Order'. This applies to orders they place manually as well.

• Q14: Can a client with a credit account choose to pay by BACS instead of Direct Debit?

  • A: No, this is not currently possible. To ensure the process is as straightforward as possible, the only type of credit account offered is based on 30 Days Direct Debit terms.

Managing Credit Accounts: Debt and Statements

• Q15: How might a client on a credit account accrue debt?

  • A: Debt can occur if a scheduled Direct Debit payment fails.

• Q16: Who is responsible for chasing any outstanding debt on a client's credit account?

  • A: The client's assigned Account Manager is responsible for chasing any debt in all instances.

• Q17: What should a client do if they believe there's an error on their credit account statement?

  • A: The client can reply directly to the statement email, clearly explaining what they believe the error is. This query will go to Accounts who will investigate.

• Q18: Is there a deadline for clients to raise issues with their statements?

  • A: Yes, clients have 10 days from the date of the statement to raise any queries or disputes.

• Q19: What are the common reasons a client might be declined for a credit account?

  • A: A client may be refused a credit account for several reasons, including:

    • A poor credit score (below 51).

    • Difficulty in finding or verifying the client's company information.

    • The client is requesting credit for personal use rather than for a registered company.

• Q20: Can a client be approved for credit if they are initially declined for one of the listed reasons?

  • A: No. If a client is declined for these specified reasons, the decision is final, and they will not be granted a credit account.

Credit Invoicing Timeline

• Q1: What determines which month's statement a credit job will appear on?

  • A: Credit invoicing is based on the dispatch date of a job.

• Q2: What happens if a client places an order near the end of one month, but the job is dispatched in the following month?

  • A: If a client orders close to the end of a month, and the job is then dispatched early in the next month, the charge for that job will appear on the statement for the month in which it was dispatched.

• Q3: Can you provide an example of this?

  • A: Yes. For example, if a client places an order on the 31st of May, but the order is dispatched on the 2nd of June, this job would appear on June's statement (which would typically be issued in early July for payment later that month).