CREDIT MANAGEMENT CORPORATE CREDIT POLICY. Corporate Vetting Product Page 1 of 7

Transcription

1 CREDIT MANAGEMENT CORPORATE CREDIT POLICY Corporate Vetting Product Page 1 of 7

2 TABLE OF CONTENTS Section Topic A Amendment History 1 Purpose 2 Types of business entities 3 Brief description of entities 4 Required documents for vetting purposes A. AMENDMENT HISTORY Version No Sections Influenced Description of Changes Date Changed By 001 All Creation of document 002 Change to Vetting TAT business rules Defining an SME Requirement for a processed cheque has been removed from the business rules 19/04/2011 Lionel Gaum 1. PURPOSE The purpose on this document is to provide guidance to Corporate credit vetting To ensure the underwriting of good quality of Corporate business and limit bad debt To reduce risk by adhering to the correct credit procedures 2. Credit Vetting An SME application will be defined as a company applying for 5 or more lines The Turnaround time for the Credit Vet is 24 hours (this TAT does not include activations) Corporate Vetting Product Page 2 of 7

3 3. TYPES OF BUSINESS ENTITIES 3.1 Sole proprietors 3.2 Section 21 (non profit organizations) 3.3 Trusts 3.4 Government 3.5 Incorporated 3.6 Partnerships 3.7 Close Corporation 3.8 Companies 4. BRIEF DESCRIPTION OF ENTITIES 4.1 Sole Proprietors This type of business is owned by person, the are no formal requirements to establish the sole proprietor 4.2 Section 21 (non profit organizations) This type of company is intended to specifically non profit organisations and therefore is suitable for promoting religion education, charity and social activities, that refers to schools, clubs and churches 4.3 Trusts A trust can be defined as a legal relationship which comes into effect when someone who wishes to form a trust hands over control to a trustee/s. trustee/s will administer the assets of the trust to the benefit of the beneficiary/ies 4.4 Government This refer to government itself or the departments within the government, no registration number required, as this is not a business 4.5 Incorporated Company usually associated with or formed by attorneys. 4.6 Partnerships A contract between two people (to maximum 20), people concerned agree to contribute capital and or skills to carry on business with the intention of making profit Corporate Vetting Product Page 3 of 7

4 4.7 Close Corporation Maximum membership of 10 people, separate legal entity from the members, more flexile and less costly as compared to a company thereby promoting small business 4.8 Companies The assets of the company are owned by the company it self, the shareholders have no automatic rights to participate in the affairs of the company 5. REQUIRED DOCUMENTS FOR VETTING PURPOSES 5.1 Sole Proprietors / Individuals Fully completed subscriber agreement (P1 and P2) together with signed T&C Bar coded copy of ID Bank statements [ 3months] for sole proprietors and self employed individuals Minimum 2 of trade references to be supplied[ Sole proprietors only 5.2 Section 21 Entities Fully completed Corporate Subscriber Agreement ( P1 and P2) together with signed T&C Bar coded copy of ID of authorized signatories signing the Resolution. Purchase order on the company letterhead (Full tariff and handset descriptions) Bank statements [ latest 3months] Copy of fundraising / NPO certificate. Funding letter required from main funders advising where funding for the next 24 months will be originating from. Income and Expenditure Statement capacity.) Corporate Vetting Product Page 4 of 7

5 5.3 Trusts Fully completed Corporate Subscriber Agreement (P1 and P2) together with signed T&C Official purchase order on company letterhead (Full tariff and handset descriptions) Bank statements ( latest 3months) Letter of Authority (magistrate court) capacity.) Bar coded ID documents for signatories in the resolution. 5.4 Government Fully completed Corporate Subscriber Agreement ( P1 and P2) with signed T&C Official government purchase order (Full tariff and handset descriptions) Bar coded Copies ID s of signatories signing the Resolution Resolution [Letter/ written confirmation from board of directors authorizing contractual capacity.] Data registration for service provider Legal Agreement / Sales Proposal [ where applicable] 5.5 Incorporated Fully completed Corporate Subscriber Agreement (P1 and P2) with signed T&C Official purchase order on company letterhead (Full tariff and handset descriptions) Copy of bank processed cheque capacity.) with ID documents of signatories signing the Resolution Articles of Association and personal sureties may be requested Bank statements (latest 3months) 5.6 Partnerships Fully completed Corporate Subscriber Agreement ( P1 and P2) with signed T&C Copy partnership agreement Corporate Vetting Product Page 5 of 7

6 Bank statements ( latest 3months) Bar coded ID documents for partners signing the Resolution capacity) 5.7 Close Corporation [CC] Fully completed Corporate Subscriber Agreement ( P1 and P2) with signed T&C Copy of CK documents Bar coded copies ID s of all members Bank statements (latest 3 months) Financial statements (Where applicable) 5.8 Registered Companies [LTD] and [PTY] LTD Fully completed Corporate Subscriber Agreement [ P1 and P2] with signed T&C Resolution [Letter/ written confirmation from board of directors authorizing contractual capacity.] Bank Statements (3 months latest) Company Registration documents -CM29 Bar coded ID documents copies of directors signing the Resolution Financial statements (latest 2 years) [ Where applicable] 6. CRITERIA FOR ADD ON LINES Add on lines will be assessed based on but not limited on the following Conduct of existing account on clarify ( no debit order rejections for the last 3 months Regular and timeous payment. Both individuals and the business must be credit checked. Favorable bank codes. Corporate Vetting Product Page 6 of 7

7 6. LEVEL OF AUTHORITY The following levels of authority apply to Corporate Vetting process only No of Services Up to 20 lines Up to 100 lines Up to 200 lines More than 200 Approval Levels Corporate Credit Vetter Credit Manager National Credit Manager Financial Director All government applications referred to the Corporate Credit Manager for approval 7. GENERAL This is a working document and serves as the guideline is by no means exhaustive. Credit Management reserves the rights to alter the document without prior notice and at its discretion. Corporate Vetting Product Page 7 of 7