Trade credit


Trade credit, also referred to as commercial credit, is a type of credit that a seller extends to a buyer in business-to-business transactions.

It is distinguished by a delayed payment period in relation to the sale. If the buyer pays promptly after the sale, they may receive a discount. However, if payment is deferred, the full payment is required.

General conditions for obtaining trade credit:

The credit limit is determined individually for each counterparty after analyzing their financial situation.

The credit line amount depends on the size of the trade cooperation and the possible presentation of collateral for our receivables.

Trade credit is granted only to customers with positive financial assessments.

An assessment is conducted to determine the level of financial risk associated with trading with new and returning customers. The rating depends on whether the customer will be able to fulfill their financial obligations within the agreed timeframe.

Any counterparty intending to initiate or already cooperating with Podlaskie Zakłady Zbożowe S.A. may apply for a trade credit limit.

The following documents are necessary for issuing such option:

  1. Submission of registration documents:
    • Business activity registration (enrollment to CEIDG),
    • Tax identification number (NIP),
    • Statistical number (REGON),
    • National Court Register (KRS).
    • For limited liability company: a statement of the authority to represent the company by the Management Board in the light of Art. 230 of the Commercial Companies Code (KSH). / According to the Art. 230 of the legal regulations „…the assumption of an obligation to perform an act with a value exceedingly twice the amount of the share capital requires a resolution of the shareholders, unless otherwise provided by the company’s agreement.”
  2. For Customers with a Stable Market Position- after receiving all necessary documents (registration, financial and security documents) enabling a positive assessment of the financial situation and credit risk.
  3. In the case of significant Limits and Long Deferred Payment Periods, after proposing additional collateral options, such as:
    • Promissory note without protest,
    • Mortgage,
    • Guarantee,
    • Transfer of ownership, etc.,

These collateral options should be accepted by the Board of Podlaskie Zakłady Zbożowe S.A. as adequate to the risk incurred.

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