Credit Policy – Field Quick Guide
Scope: Short Cash & Company Credit customers (Abu Dhabi, Al Ain, Western Region). This page summarizes the approved Credit Policy for fast daily reference—always defer to the full policy for details and exceptions.
At a Glance
- Default for new customers: Cash for first 3 months; then apply for credit as per DoA.
- Short Cash Declaration: due by the 15th of every month (late submission ⇒ Salesman block by CM).
- Bounced cheque (insufficient funds/closed account) ⇒ Immediate block. Reinstatement only with bank guarantee.
- ERP/SAP: All workflows (block/unblock, monitoring, reporting) executed in SAP.
Customer Classification & Credit Types
- Categories: TT (Groceries, Traditional Eateries), HORECA, MT (Super/Hyper), E‑commerce, Wholesale (WS), Convenience/Mini Market.
- Types: Cash → Short Cash (limited credit) → Company Credit (agreement-based).
Eligibility & Documents
- Trade License · TRN · Owner ID/Passport (Short Cash) · POA for bank signatory (optional).
- Company Credit: Signed agreement required. Minimum monthly revenue to qualify: AED 7,500 (exceptions require GM approval).
Approval Authority (DoA) – Snapshot
| Facility | Limit | Final Approval |
|---|---|---|
| Short Cash | ≤ AED 10,000 | Sales Director |
| > 10,000 – 25,000 | Finance Manager | |
| > 25,000 – 200,000 | General Manager | |
| > 200,000 | Managing Director | |
| Company Credit | AED 7,500 – 10,000 | Sales Director |
| > 10,000 – 25,000 | Finance Manager | |
| > 25,000 – 200,000 | General Manager | |
| > 200,000 | Managing Director |
With signed agreements (OP–HORECA, MT, TT company credit): routing typically follows CM → SD → FM → GM → MD.
Blocking & Reinstatement
| Block Triggers | Reinstatement | Notes | |
|---|---|---|---|
| Short Cash | Policy breach; Late >15 days above credit terms ⇒ convert to Pure Cash; 3+ violations ⇒ Permanent Cash. | After full payment realization, per DoA. | Any invoicing to blocked customer requires DoA. |
| Company Credit | Policy breach (auto/manual block). Delay >45 days above credit terms requires DoA to continue facility. | After full payment realization + DoA. | Any invoicing to blocked customer requires DoA. |
Dunning Process & Timelines (Company Credit)
- 0 (Due Date): System email to customer.
- +5 days: Reminder follow‑up (system email).
- +15 days: Sales call + email from Sales.
- +30 days: Customer meeting (email from Sales + on‑site meeting).
- +60 days: Escalation – email from FM to SD & GM.
Billing & Route Compliance
- Stamped invoice must be submitted same day; failure ⇒ customer block.
- Short Cash Declaration must reach AR by 15th monthly (signed).
Cheque Handling
- Bounced cheque (insufficient funds/closed account) ⇒ Immediate block.
- Reinstatement only upon bank guarantee + DoA.
SAP / ERP Notes
- Embed approvals, blocking/unblocking, monitoring & reporting in SAP.
- Ensure audit trail and periodic review (bi‑annual for existing customers).
This guide summarizes the approved Credit Policy. For full definitions, matrices, and exceptions, refer to the full policy page.