What your payment terms and credit limits are

As a customer, it’s only right and fair that you know absolutely everything beforehand. We don’t want you to have hidden surprises, so we’ll always be as transparent as possible.  

We believe that honesty is the best policy, so wherever possible, we’ll always try and give you what you need to make an informed decision.  

That certainly applies when it comes to buying from us, as there are a few things that we are asked with regularity before purchase.  

In particular, the two things we frequently get are, ‘What are your payment terms?’ and ‘How much credit can I get with Multifix?’  

The short answer to these questions is ’30 days net EOM’ and ‘depends on your credit rating’, however, the long answer is somewhat more nuanced.  

As such, this article will explain our reasoning for both and by the end of it, you’ll hopefully be much more informed.  

The Multifix payment terms

At Multifix, we do like to trust our customers and give them some financial leeway when they come to use us as a supplier.  

As such, regardless of whether you’re a first-time buyer or a loyal client, whether you’re buying one box of screws or a £25k order, we’ll always give you net 30 days end of month to pay.  

This means that will have 30 days from the beginning of the following month to pay for what you have ordered with us.  

We understand that sometimes, you need something urgently. As such, the buy now, pay later scheme can be very helpful. 

That is why we have the policy in place, as ultimately, we want to make sure that you have the best service possible from us.  

The Multifix credit limits 

When it comes to credit limits, there are three different ways we can set your credit limit. The first is by asking credit insurers for a written limit. This is the most preferable way, however not the only one.  

The reason why it is most preferable is that while we have three methods, the written limit is the only one that isn’t capped at £18,000, including VAT. There is no cap for a written limit, as we have more assurances in place.  

The second method is a discretionary limit. In order to work this out, we will use a third-party credit intelligence company to determine what we can give you. We use Creditsafe, which is regularly used by other suppliers within the construction industry.  

The third method is based on your trading history. We will take your biggest payment over the last 12 months, multiply it by 1.25 and use that figure to determine what we can allow you.  

Being open with the financials 

As we stated earlier, we want to be completely transparent with you when it comes to financial factors such as credit limits and payment terms.  

It’s something that you need to know and we don’t want you to feel as if it’s something awkward to ask about.  

Hopefully though, with everything in this article, you’ll know exactly where you stand when it comes to both of these topics. Should you wish to find out more about how your credit account works though, you can read more here.  

If you would like to speak to Multifix to find out more about our credit limits or payment terms, you can get in touch with us here.