Limits to obtaining and maintaining trade credit

The main limits to obtaining or maintaining trade credit are:

1) overdue debts towards the Mills for delayed payments, which also results in sales being stopped until the arrears are settled.

2) a reduction or withdrawal of the trade credit limit in the event that during a two month period the customer has made purchases which differ considerably from the limit granted.

3) trade credit may not be used to finance fixed assets or investment activity.

4) The time for which the trade credit is to be granted is established on an individual basis for each customer, and we take into account such factors as financial liquidity, brand recognition, the course of previous transactions and the trust which a given company enjoys. The main factor which significantly influences the date for postponing payment is the amount of credit.

DOCUMENTS REQUIRED FOR A TRADE CREDIT APPLICATION TO BE CONSIDERED

A trade credit application is considered after the following documents are provided or updated:

1) trade credit application download

2) registration documents - current extract from the National Court Register, no more than 3 months old, or certification of an entry in the company register (depending on the company’s legal form),

3) in the case of limited liability companies - a declaration by the Management Board of the level of authorisation to represent the company in light of Art. 230 of the Commercial Companies Code. and the company deed,

4) collateral

5) balance for the last finished financial year and report on revenue and costs for the last quarter of the current year