CREDIT LIMITS Setting Limits Clause Samples
The 'CREDIT LIMITS Setting Limits' clause establishes a maximum amount of credit that one party may extend to another under a contract. In practice, this clause specifies a monetary threshold, and transactions or orders exceeding this limit may require additional approval or may not be permitted until outstanding balances are reduced. By clearly defining the boundaries of credit exposure, this clause helps manage financial risk and ensures that both parties are aware of and agree to the extent of credit available, thereby preventing disputes and potential financial losses.
CREDIT LIMITS Setting Limits. 3.1 We may set (and alter) a Credit Limit for a Customer. Unless We explicitly give one such limit will be zero. You must truthfully and accurately tell Us everything You know or should know might influence Us in setting or continuing a Credit Limit. We will choose the method to tell You We have acted under this Condition 3.1 and need not give You any reason for any decision We make under it
3.2 You can ask Us (verbally or in Writing) to set, or after, a Credit Limit If You do You must give Us all information We ask for and the Credit Limit You want.
3.3 Credit Limits only cover Debts created after they are set. if at any time Unpaid Debts created after this exceed that Customer's Credit Limit, the excess amount will be Disapproved Debts.
3.4 Debts fall within or outside Credit Limits based upon invoice date (earliest before latest).
3.5 We are not a credit reference agency. Us setting a Credit Limit is no indication of a Customer's ability to pay you will tell no one, including Your Customers, anything about any Credit Limit (including if it exists).
3.6 An Approved Debt will automatically become a Disapproved Debt:-
(A) when its Approval Period ends;
(B) on the Insolvency or threat of proceedings for or other steps towards Insolvency of the Customer;
(C) if You break any Promise relating to that Debt; or
(D) when this Agreement ends. We may at any time treat all or any part of an Approved Debt as a Disapproved Debt. If an Approved Debt becomes a Disapproved Debt You must at once Repay it in the currency of the Current Account relating to it If We require it You will also then pay any other amounts You owe Us.
3.7 If at any time a Customer's Unpaid Debts exceed that Customer's Credit Limit but any report or account We give to You describes such excess as an Approved Debt the excess will only be an Approved Debt so far as it is within the relevant Credit Limit and does not break the High involvement.
CREDIT LIMITS Setting Limits. 3.1 We may set (and alter) a Credit Limit for a Customer. Unless We explicitly give one, such limit will be zero. You must truthfully and accurately tell Us everything You know or should know might influence Us in setting or continuing a Credit Limit. We will choose the method to tell You We have acted under this Condition 3.1 and need not give You any reason for any decision We make under it
3.2 You can ask Us (verbally or in Writing) to set, or alter, a Credit Limit If You do You must give Us all information We ask for and the Credit Limit You want.
CREDIT LIMITS Setting Limits. 3.1 We may set (and alter) a Credit Limit for a Customer. Unless We explicitly give one such limit will be zero. You must truthfully and accurately tell Us everything You know or should know might influence Us in setting or continuing a Credit Limit. We will choose the method to tell You We have acted under this Condition 3.1 and need not give You any reason for any decision We make under it
3.2 You can ask Us (verbally or in Writing) to set, or after, a Credit Limit If You do You must give Us all information We ask for and the Credit Limit You want.
3.3 Credit Limits only cover Debts created after they are set. if at any time Unpaid Debts created after this exceed that Customer’s Credit Limit, the excess amount will be Disapproved Debts.
3.4 Debts fall within or outside Credit Limits based upon invoice date (earliest before latest).
3.5 We are not a credit reference agency. Us setting a Credit Limit is no indication of a Customer's ability to pay. you will tell no one, including Your Customers, anything about any Credit Limit (including if it exists).