Credit and Collection Policy
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Purpose
To describe Cyexx's credit and collection policies and procedures. These procedures will
govern alliance with customer base, primarily for granting credit limits for the sale of the products and services offered by
Cyexx. Furthermore, the collection procedures will be outlined by order of sequence.
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Summary
All customers seeking a line of credit must complete a credit application. Customers that are not approved for credit by the
Credit Manager MUST PREPAY their order to obtain delivery. A customer can re-apply for a line of credit after
establishing a customer relationship with the Cyexx.
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Credit Procedure
All customers of the Cyexx, whether external and internal are to be
treated with respect and courtesy in an efficient and timely manner. Customers will be contacted a reasonable period of
time regarding Cyexx's credit decision and the basis which determined our decision. The
extension of credit is based on the approval process of the Credit Manager or other members of Management of the
Cyexx. The regulations are as follows:
1. All customers must submit a credit application in order to receive a line of credit.
2. Commercial accounts that have not been in business for 5 years or more may be required to complete a
personal guarantee form.
3. All customers that pay according to Purchase Order numbers can provide these numbers once credit has been
approved and set with a credit limit. The customer must keep a current pay history otherwise the credit account
will be placed as inactive status until the account is paid to the current balance.
5. All customers without an existing line of credit or Purchase Order set up with the
Cyexx must pre-pay all materials ordered.
6. All Credit Customers must pay the invoice in full on or prior to the due date listed on the invoice unless otherwise
specified in a separate purchase agreement such as Hosting Agreement, Managed Agreements,
or other special payment arrangements.
7. Additional information such as financial statements, credit card payment authorization form, pre authorized
payment agreement form, tax id forms and third party guarantee forms may be required to complete the credit
procedure.
8. Accounts that remain inactive due to past-due balances and/or no activity for a maximum 24 month period will be
deleted. Deleted accounts will require credit to be re-established according to our current credit procedures.
Collection Procedures
Credit Accounts: Customer statements will be processed and
mailed prior to the 15th of every month.
1. Each customer will be notified of the Cyexx's efforts to collect past due invoices
within the first 45 days of delinquency.
2. If payment is not received by the initial due date indicated on the invoice, the customer will be charged a 1.5%
finance charge, (not to exceed 18% APR) as agreed on the credit application &
Invoice.
Customer will also be accessed a $15.00 late fee for processing.
3. Customer accounts that exceed 60 days past due will be notified. If payment is not received within 10 days the
Credit Limit of their account will be lowered to the current outstanding balance, thereby preventing release of
further orders. The Management and Customer Relations staff will be notified of all accounts that have exceeded
60 days past due and their assistance may be solicited. Each salesperson will be notified regarding accounts of
substantial amounts.
4. Past due customers of 90 days or more will be reported to Management for approval to invoke third party and/or
legal assistance.
Retail Sales Accounts:
1. Each Retail Sales customer will be notified of the Cyexx's efforts to collect past due
invoices when the account becomes 14 days past due.
2. If payment is not received by the initial due date indicated on the invoice, the customer will be charged a 1.5%
finance charge, (not to exceed 18% APR) as agreed on the Invoice. Customer will
also be accesses a $15.00 late fee for processing.
3. If payment is not received within 10 days of the initial notification of their delinquency the account will be
SUSPENDED according to the terms specified in the Agreement and/or Invoice.
4. Customers that exceed 60 days past due will be reported to Management for approval to invoke third party and/or
legal assistance. The account must be paid in full, and the Customer will have to re-apply for another line of credit
with a reduced credit limit. If the customer continues to violate the credit terms and agreement, future sales will be
on a PRE-PAYMENT BASIS ONLY.
Returned Check Procedure/NSF
1. All returned NSF checks would be charged a $30 NSF fee
or 5 Percent of the face value, regardless of the purchase (materials or
certificates), to be paid prior to the acceptance of a new order.
2. When a check is returned due to insufficient funds the account that the check is posted may be considered
past due and collection procedure will begin with a Returned Check Notice mail certified to the issuer of the
check.
3. If the total amount due listed above is not paid within 30 days of the mailing of the Returned Check Notice,
thereafter we may file a civil action to seek damages of two time the amount of the check (with a minimum
damage of one hundred dollars ($100.00) and a maximum damage of five hundred dollars ($500.00) for
allegedly giving a worthless check in violation of law (OCGA 13-6-15), in addition to the amount of the check and
the fees specified above.
4. Appropriate relief will then be sought before a court of proper jurisdiction for full payment of the check plus all
costs, damages, and witness fees.
5. Cash or bank official check will be the only acceptable means of redeeming the dishonored check.
6. In the event that two returned checks are received within a 12 month period the account will be changed to
accept cash or bank official check will be the only acceptable means of payment.
Exceptions
The President, Administrator and Credit Manager may grant exceptions on a case by case basis.
expenditure-deposit
expenditure-deposit
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