Credit Terms Template — B2B Supplier

Credit Terms — Template

TERMS AND CONDITIONS OF CREDIT

[Your Business Name] (ABN [Your ABN]) — "[Supplier]"

1. Application of Terms
These Terms and Conditions of Credit ("Terms") apply to all sales of goods and/or services by the Supplier to the Customer on credit and form part of any agreement between the Supplier and the Customer. By submitting a credit application, placing an order on credit, or accepting goods or services supplied on credit, the Customer agrees to be bound by these Terms.

2. Payment Terms
2.1 All invoices are due and payable within [7 / 14 / 30] days of the date of invoice ("Due Date"), unless otherwise agreed in writing.
2.2 Payment must be made by [EFT / cheque / BPAY / other method] to the account details stated on the invoice.
2.3 The Customer must pay all invoices without set-off, deduction, or counterclaim unless otherwise agreed in writing by the Supplier.

3. Interest on Overdue Amounts
3.1 If any invoice is not paid by the Due Date, interest shall accrue on the outstanding amount at the rate of 10% per annum (simple interest), calculated daily from the Due Date until the date of actual payment.
3.2 The Supplier's right to charge interest does not affect any other right or remedy available to the Supplier.

4. Late Fee
4.1 If any invoice is not paid by the Due Date, a late fee of $[Fixed Amount, e.g. $50.00] per overdue invoice shall be payable by the Customer to the Supplier.
4.2 Alternatively, or in addition, a late fee of [X]% per month may be charged on the outstanding balance for each month or part month that the amount remains unpaid after the Due Date.
[Delete whichever clause does not apply, or adapt to suit your business.]

5. Recovery of Collection Costs
The Customer agrees to pay all reasonable costs incurred by the Supplier in recovering any overdue amount, including (without limitation) debt recovery agency fees, solicitor fees (on a solicitor-client basis), court filing fees, and any other enforcement costs.

6. GST
6.1 Unless otherwise stated, all prices and amounts stated in invoices are inclusive of GST where applicable.
6.2 "GST" has the meaning given in the A New Tax System (Goods and Services Tax) Act 1999 (Cth). The Customer must pay any GST applicable to a taxable supply on the same terms as the consideration for that supply.

7. Credit Limit and Suspension
7.1 The Supplier may set and vary a credit limit for the Customer at any time without notice.
7.2 The Supplier may suspend or withdraw the Customer's credit account at any time, including where: (a) any invoice is overdue; (b) the Customer exceeds its credit limit; or (c) the Supplier has reasonable grounds to doubt the Customer's creditworthiness.

8. Personal Guarantee
Where the Customer is a company, a director of the Customer agrees, by signing the credit application to which these Terms are attached, to personally guarantee the payment of all amounts owed to the Supplier by the Customer, now and in the future. This guarantee is a continuing guarantee and is not discharged by partial payment.

9. Jurisdiction
9.1 These Terms are governed by the laws of the State of [Your State, e.g., Queensland / New South Wales / Victoria].
9.2 The Customer submits to the non-exclusive jurisdiction of the courts of that State for the resolution of any dispute arising under or in connection with these Terms.

10. Variation
The Supplier may vary these Terms at any time by providing written notice to the Customer. Continued use of credit after the notice period constitutes acceptance of the varied Terms.

CUSTOMER ACCEPTANCE

By signing the credit application, the Customer confirms that it has read, understood, and agrees to be bound by these Terms and Conditions of Credit.

Authorised Signatory: _____________________________ Date: ___________
Full Name: ____________________________
Position: _____________________________
Company Name: ________________________
ABN / ACN: ____________________________