Yes, at PharmAlliance International Labs Private Limited, we may offer credit terms to established distributors with a proven track record of reliability, financial stability, and adherence to payment terms. Credit terms allow distributors to make purchases on credit and pay for the goods at a later date, typically within an agreed-upon period. Here’s how our credit terms for established distributors work:
Credit Application Process: To qualify for credit terms, distributors must undergo a credit evaluation process conducted by our finance or accounts receivable department. This process may involve submitting a credit application, providing financial statements, bank references, trade references, and other relevant information.
Credit Limit Determination: Based on the results of the credit evaluation, we determine the credit limit for each established distributor. The credit limit represents the maximum amount of credit extended to the distributor, indicating the total value of purchases they can make on credit within a specified period.
Payment Terms: The payment terms specify the terms and conditions under which credit purchases must be repaid. Common payment terms include net payment due within a certain number of days from the date of invoice, such as net 30 days, net 60 days, or net 90 days. Distributors are expected to adhere to the agreed-upon payment terms to maintain their credit privileges.
Billing and Invoicing: We issue invoices to distributors for credit purchases, detailing the products ordered, quantities, prices, total amount due, and payment due date. Distributors are responsible for reviewing invoices promptly, verifying the accuracy of the information, and making timely payments according to the agreed-upon payment terms.
Late Payment Penalties: Failure to adhere to payment terms may result in late payment penalties or finance charges applied to overdue balances. Late payment penalties encourage prompt payment and help offset the costs and risks associated with delinquent accounts.
Credit Monitoring and Management: We regularly monitor the credit status and payment behavior of our distributors to ensure compliance with credit terms and manage credit risk effectively. Distributors with a history of timely payments and good credit standing may qualify for higher credit limits or more favorable terms in the future.
Overall, our credit terms for established distributors aim to facilitate business growth, foster long-term relationships, and provide financial flexibility while maintaining prudent credit risk management practices. Our finance team works closely with distributors to establish credit terms tailored to their needs and ensure smooth and mutually beneficial transactions.
