Credit Terms

Credit Terms

    1. Introduction

    These credit terms and conditions apply to clients seeking to establish a credit relationship with Solwave Technologies. The approval of credit terms is at the sole discretion of Solwave Technologies and may be accepted or rejected based on the evaluation of the provided documents and financial stability.

    1. Active Trade History

    2.1 Minimum Requirement

    • The CLIENT must have at least six (6) months of active trade history with Solwave Technologies, including a record of consistent orders and payments within this period.
    • Clients with less than six (6) months of trading history will not be eligible for credit terms.
    1. Know Your Customer (KYC) Documents

    As part of the credit application process, the CLIENT must submit the following documents for validation and evaluation:

    3.1 Business Documentation

    • Company Profile detailing the business nature, services offered, market position, and objectives.
    • Certificate of Incorporation/Business Registration Certificate.
    • Valid Trading License.
    • CR12 (Certificate of Registration of Directors and Shareholders).
    • Certified copies of National IDs or Passports of company directors.
    • Current Tax Compliance Certificate.
    • KRA PIN Certificate.
    • KRA VAT Certificate (where applicable).

    3.2 Financial Documentation

    • Six (6) months’ bank statements from the CLIENT’s business account.
    • Three (3) years’ audited financial statements, including:
      • Auditor’s Report.
      • Balance Sheet.
      • Income Statement.
      • Cash Flow Statement.
      • Statement of Changes in Equity.
      • Notes to the Financial Statements.

    3.3 Contact Information

    • Name of contact person for credit-related matters.
    • Email address and phone number.
    1. Evaluation of Credit Terms

    4.1 Credit Terms Decision

    • Solwave Technologies will evaluate the CLIENT’s financial standing, trade history, and compliance with documentation requirements based on:
      • The CLIENT’s ability to meet payment obligations.
      • Financial health, as evidenced by audited financial statements and bank records.
      • Compliance with tax and business registration regulations.
      • Stability of business operations.

    4.2 Approval and Rejection

    • Solwave Technologies reserves the right to accept or reject credit applications based on evaluation findings.
    • In cases of rejection, the CLIENT will be notified with an explanation.
    1. Credit Limit and Payment Terms

    5.1 Credit Limit

    • A credit limit will be assigned based on the CLIENT’s financial capacity and trade history.

    5.2 Payment Terms

    • Standard payment terms will range between seven (7) to thirty (30) days from the invoice date.
    • Extended credit terms may be considered for businesses with strong financial history and consistent trade activity.

    5.3 Late Payments

    • Delayed payments beyond agreed terms will result in:
      • Late payment fees as per the contract.
      • Suspension of credit facilities until outstanding dues are cleared.
    1. Review and Renewal of Credit Terms

    6.1 Review Process

    • Solwave Technologies will periodically review the CLIENT’s credit terms based on continued trading activity and updated financial statements.

    6.2 Renewal

    • Credit terms may be renewed or revised at the end of each review cycle based on compliance with trade history and documentation requirements.
    1. CLIENT Responsibilities
    • Ensure the accuracy and completeness of submitted documents.
    • Promptly notify Solwave Technologies of changes in business status or tax compliance.
    • Adhere to agreed payment terms and conditions.
    1. Final Decision

    Solwave Technologies reserves the right to:

    • Approve or deny any credit application.
    • Set specific terms or limits based on financial evaluation.
    • Modify or revoke credit terms in cases of non-compliance or changes in financial health.
    1. Credit Application Process

    9.1 Submission

    • The CLIENT must submit all required documentation to initiate the credit evaluation process.

    9.2 Evaluation

    • Solwave Technologies will conduct a detailed review of the CLIENT’s financial standing and trade history.

    9.3 Approval or Rejection

    • Credit applications will be either approved or rejected based on financial and business assessments.
    • In the case of rejection, the CLIENT may request clarification.

    9.4 Notification of Approval

    • Successful applicants will receive written notification of their approved credit limit and applicable payment terms.
    1. Credit Terms and Conditions

    10.1 Payment Terms

    • Standard payment terms are generally between thirty (30) to sixty (60) days from the invoice date.
    • Late payments may incur additional charges or interest.

    10.2 Interest on Overdue Payments

    • Interest on overdue amounts will be charged at a rate determined by Solwave Technologies.
    • Late payment fees may apply.

    10.3 Credit Limit

    • The CLIENT’s credit limit will be reviewed periodically and adjusted based on financial performance.

    10.4 Suspension or Withdrawal of Credit

    • Solwave Technologies reserves the right to suspend or withdraw credit facilities in cases of repeated late payments or non-compliance.

    10.5 Retention of Title

    • Goods supplied under credit terms remain the property of Solwave Technologies until full payment is received.

    10.6 Default on Credit

    • If the CLIENT defaults on credit obligations, Solwave Technologies may take legal action to recover outstanding debt.
    • The CLIENT will be responsible for any legal and collection costs incurred.

    10.7 Review and Adjustment of Credit Terms

    • Periodic reviews will be conducted to assess the CLIENT’s credit performance and make necessary adjustments.
    1. General Terms and Conditions

    11.1 Documentation Updates

    • The CLIENT must notify Solwave Technologies of any changes in business or tax compliance status.

    11.2 Confidentiality

    • All CLIENT information provided in the credit application will be treated with strict confidentiality.

    11.3 Dispute Resolution

    • Any disputes regarding credit terms, payments, or services shall be resolved through direct negotiation, mediation, or arbitration.

    By applying for credit with Solwave Technologies, the CLIENT acknowledges and agrees to these terms and conditions. The CLIENT consents to the use of submitted documents for credit evaluation and compliance purposes.