Credit and Account Policy

Effective: July 2025
Company Name: Warrior Welders Ltd
Registered Address: Warrior Welders Ltd, Unit 1A Lapdown Workshops, Lapdown Lane, Tormarton, Badminton, Gloucestershire, GL9 1JE

Email: info@newsite25.warriorwelders.com

1. Purpose

This policy establishes the terms and conditions under which credit accounts are extended to customers of Warrior Welders Ltd. The purpose of this policy is to ensure financial stability, mitigate risks and maintain consistency in managing customer credit accounts.

2. Scope

This policy applies to all customers who wish to open a credit account with Warrior Welders Ltd and to those who are already existing credit account holders.

3. Credit Account Terms

Customers who meet the criteria outlined in this policy may be granted a credit account Warrior Welders Ltd. The credit account terms are as follows:

• Credit Period: 30 days following the end of the invoice month (meaning that the invoice is due on the 30th of the month following the invoice date)
• Credit Limit: £3,500 following a positive credit reference check. If a review of financial history, order history and the evaluation of their creditworthiness demonstrates a higher or lower risk, the credit limit may be adjusted accordingly. This adjustment may result in an increase or decrease in the assigned credit limit based on the findings of the review.

• Credit Reference: New customers will be subject to a credit reference check. Customers with positive credit references may have an opportunity for a higher initial credit limit or more favourable terms.

4. Credit Limit Determination

• New Accounts: New customers requesting a credit account will be set a credit limit of £3,500 following a positive credit reference check. If a review of financial history, order history and the evaluation of their creditworthiness demonstrates a higher or lower risk, the credit limit may be adjusted accordingly. This adjustment may result in an increase or decrease in the assigned credit limit based on the findings of the review.
• Existing Accounts: Credit limits for existing customers will be reviewed periodically, typically every 12 months or upon request and may be adjusted based on payment history, credit score and any changes in the customer’s financial status.

The following criteria will be considered when setting the credit limit:

• Customer Credit Score: Based on third-party credit reports or internal financial evaluations.
• Payment History: Past payments with Warrior Welders Ltd or other vendors.
• Business Relationship Length: Duration of business and payment relationship.
• Order Volume and Frequency: Typical order size and frequency of purchases.

5. Credit References

New customers are required to provide one credit reference from reputable suppliers or financial institutions. These references will help Warrior Welders Ltd assess the customer’s creditworthiness and ability to manage credit accounts responsibly.

5a. Required Information for Credit References:

• Name and contact information of the credit reference (including address, phone number, and email).
• A brief description of the customer’s payment history and account standing with the reference.
• The reference’s relationship with the customer (i.e., supplier, bank, etc.).

5b. Using Credit References:

• Credit references will be used solely for the purpose of evaluating the customer’s creditworthiness. They will not be shared with third parties outside of the credit assessment process.
• Warrior Welders Ltd reserves the right to contact these references directly for additional information if deemed necessary.

6. Payment Terms

• Payments are due 30 days following the end of the invoice month (meaning that the invoice is due on the 30th of the month following the invoice date)
• Late Payments: Payments not received within the 30-day period will incur a late fee of 1.5% per month.
• Account Suspension: If the outstanding balance is not paid within 90 days, the account will be suspended and further orders will not be processed until the outstanding balance is paid in full or a new agreement is reached.

7. Credit Limits & Adjustments

• Maximum Credit Limit: £3,500. However, if a review of financial history, order history and the evaluation of their creditworthiness demonstrates a higher or lower risk, the credit limit may be adjusted accordingly. This adjustment may result in an increase or decrease in the assigned credit limit based on the findings of the review.
• Credit Limit Review: Credit limits will be reviewed periodically (at least once every 12 months) or in response to significant changes in the customer’s financial circumstances.
• Over-limit Requests: Customers who wish to increase their credit limit must submit a written request, including updated financial documentation and a reason for the increase.

8. Payment Methods

• Accepted Payment Methods: Customers can make payments via bank transfer, credit card and cash.
• Account Reinstatement: Once overdue payments are cleared, the customer’s account may be reinstated with the original credit limit or a revised credit limit based on the payment history and the company’s assessment.

9. Consequences of Default

If a customer fails to make payment within the agreed credit terms (30 days), the following actions will be taken:

1. Late Payment Fees: A 1.5% monthly interest rate will be applied to any overdue invoice.
2. Account Suspension: The customer’s account will be suspended after 90 days of non-payment.
3. Collection Efforts: Accounts overdue by more than 120 days may be sent to a collections agency and the customer will be responsible for any additional costs incurred in the collections process.
4. Legal Action: Warrior Welders Ltd reserves the right to initiate legal action to recover overdue amounts if payment is not made within 150 days.

10. Customer Responsibilities

Customers are responsible for the following:

• Timely and accurate credit references.
• Ensuring all payments are made within the agreed terms.
• Any disputes regarding invoices must be communicated in writing within 7 days of the invoice date. Failure to do so will be considered an acknowledgment of the charges.
• Notifying Warrior Welders Ltd immediately of any changes in their contact information or business status that may affect the terms of this agreement.

11. Policy Changes

Warrior Welders Ltd reserves the right to amend or update this policy at any time. Customers will be notified in writing of any material changes that may affect their accounts or payment terms.

12. Contact Information

For any questions regarding this policy or your account, please contact:

• Email: info@warriorwelders.co.uk
• Phone: 01225 312177
• Address: Unit 1A, Lapdown Workshops, Lapdown Lane, Tormarton, Badminton, Gloucestershire, GL9 1JE

Acknowledgement of Terms

By requesting and/or using a credit account with Warrior Welders Ltd, the customer acknowledges that they have read, understood, and agree to the terms outlined in this policy.