Credit Terms

These credit terms and conditions apply to clients seeking to establish a credit relationship with Rapidtech Digital Solutions. Credit terms will be evaluated based on the following parameters and documentation. The approval of credit terms is at the sole discretion of Rapidtech Digital Solutions, and may be accepted or rejected based on the evaluation of the provided documents and financial stability.

  1. Active Trade History
  • Minimum Requirement: The CLIENT must have at least 6 months of active trade history with Rapidtech Digital Solutions. This includes a record of consistent orders and payments made within this period. Clients with less than 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 KYC documents. These are necessary for the validation and evaluation of the CLIENT’s business and to comply with regulatory standards:

  • Company Profile: A detailed document outlining the nature of the business, services offered, market position, and business objectives.
  • Certificate of Incorporation/Business Registration Certificate: Official document from the relevant government authority confirming the legal registration of the CLIENT’s business.
  • Valid Trading License: A current and valid trading license that authorizes the CLIENT to conduct business in the relevant jurisdiction.
  • CR12: A copy of the CR12 (Certificate of Registration of Directors and Shareholders), which lists the key individuals involved in the ownership and management of the company.
  • Copies of IDs of Directors: Certified copies of the identity documents (National ID or Passport) of the company’s directors.
  • Current Tax Compliance Certificate: A valid certificate issued by the tax authorities confirming that the CLIENT is compliant with all tax obligations.
  • KRA PIN Certificate: A copy of the CLIENT’s Kenya Revenue Authority (KRA) Personal Identification Number (PIN) Certificate for tax purposes.
  • KRA VAT Certificate: A copy of the KRA VAT Certificate, confirming the business is registered for VAT where applicable.
  • 6-Month Bank Statement: A statement from the CLIENT’s business bank account for the last 6 months to show financial activity and cash flow management.
  • 3 Years Audited Financial Statements: Certified audited financial statements for the last 3 years. These documents should include:
    • Auditor’s Report
    • Balance Sheet
    • Income Statement (Profit & Loss Statement)
    • Cash Flow Statement
    • Statement of Changes in Equity
    • Notes to the Financial Statements
  • Contact Person: The CLIENT must provide the contact information of the primary point of contact for credit-related communications. This should include:
    • Name of Contact Person
    • Email Address
    • Phone Number
  1. Evaluation of Credit Terms
  • Credit Terms Decision: Credit terms will be evaluated based on the CLIENT’s financial standing, trade history, and compliance with the documentation requirements. The evaluation will include the following factors:
    • The CLIENT’s ability to meet payment obligations in a timely manner based on previous transactions.
    • The financial health of the CLIENT, as evidenced by the submitted audited financial statements and bank statements.
    • The CLIENT’s compliance with tax and business registration requirements.
    • The stability and history of the CLIENT’s business operations as outlined in the company profile and related documents.
  • Approval and Rejection: Rapidtech Digital Solutions reserves the right to accept or reject credit terms based on the information provided in the application and the evaluation of the CLIENT’s creditworthiness. In cases of rejection, the CLIENT will be notified with an explanation of the reasons for the decision.
  1. Credit Limit and Payment Terms
  • Credit Limit: Upon successful evaluation, Rapidtech Digital Solutions will assign a credit limit to the CLIENT based on their financial capacity, trade history, and risk assessment.
  • Payment Terms: The standard payment terms will be 7 to 30 days from the date of invoice. Extended credit terms may be considered for businesses with a strong financial history and consistent trade activity.
  • Late Payments: In case of delayed payments beyond the agreed terms, the CLIENT may be subject to:
    • Late payment fees as per the agreed contract.
    • Suspension of credit for further purchases until outstanding dues are cleared.
  1. Review and Renewal of Credit Terms
  • Review Process: Rapidtech Digital Solutions will periodically review the CLIENT’s credit terms based on continued trading activity, payment behavior, and updated financial statements. Any significant changes in the CLIENT’s business or financial health may prompt a reassessment of the credit terms.
  • Renewal: Credit terms may be renewed or revised at the end of each review cycle. The CLIENT must continue to meet the documentation and trade history requirements for renewal.
  1. Responsibility of the CLIENT
  • The CLIENT is responsible for ensuring the accuracy and completeness of the documents submitted for credit evaluation.
  • The CLIENT must promptly notify Rapidtech Digital Solutions of any changes in business status, financial position, or tax compliance.
  • The CLIENT agrees to adhere to all payment terms and conditions as outlined in the agreement and will accept any consequences for non-compliance.
  1. Final Decision

The approval of credit terms is ultimately at the discretion of Rapidtech Digital Solutions. The company reserves the right to:

  • Approve or deny any credit application.
  • Set specific terms or limits based on the CLIENT’s financial evaluation.
  • Modify or revoke credit terms in cases of non-compliance or changes in financial health.

By applying for credit with Rapidtech Digital Solutions, the CLIENT acknowledges that they understand and agree to these terms and conditions. The CLIENT consents to the use of their submitted documents for the purpose of evaluating their credit application and agrees to comply with the final terms granted.

Credit Application Process

  1. Submission:
    • Once the CLIENT has gathered and submitted the required documentation as listed above, Rapidtech Digital Solutions will initiate the credit evaluation process.
  2. Evaluation:
    • Rapidtech Digital Solutions will conduct a thorough review of the submitted documents, including the CLIENT’s financial standing, trade history with us, tax compliance, and overall business performance. The creditworthiness of the CLIENT will be assessed based on this information.
  3. Approval or Rejection:
    • Rapidtech Digital Solutions reserves the right to accept or reject any credit application. The decision will be based on the evaluation of the CLIENT’s business performance, financial health, and ability to meet the payment obligations.
    • In the event that the credit application is rejected, the CLIENT will be notified promptly and may request additional details or clarification on the reasons for the rejection.
  4. Notification of Approval:
    • If the credit application is successful, the CLIENT will receive written notification of their approved credit limit and the specific payment terms applicable to their account. The approved credit limit will be based on the CLIENT’s financial profile and history with Rapidtech Digital Solutions.

Credit Terms and Conditions

  1. Payment Terms:
    • The standard payment terms for clients granted credit are generally 30 to 60 days from the invoice date, unless otherwise agreed upon. The CLIENT will be informed of the specific payment terms associated with their credit facility.
    • Payment should be made in full on or before the due date. Late payments may incur additional charges or interest, as detailed below.
  2. Interest on Overdue Payments:
    • If the CLIENT fails to make payment within the agreed period, interest will be charged on the outstanding amount. The interest rate will be determined by Rapidtech Digital Solutions and communicated to the CLIENT at the time of credit approval.
    • In addition to interest charges, late payment fees may apply, as detailed in the payment agreement.
  3. Credit Limit:
    • The CLIENT will be assigned a credit limit, which is the maximum amount that they can charge to their account at any given time. This limit will be reviewed periodically based on the CLIENT’s payment history and business performance.
    • Rapidtech Digital Solutions reserves the right to adjust the credit limit at its discretion, including increasing or decreasing the limit based on the CLIENT’s financial behavior.
  4. Suspension or Withdrawal of Credit:
    • In the event of repeated late payments, failure to adhere to the agreed terms, or any other breach of the credit agreement, Rapidtech Digital Solutions reserves the right to suspend or withdraw credit facilities.
    • Should credit be suspended, the CLIENT will be required to settle any outstanding amounts before the reinstatement of credit terms.
  5. Retention of Title:
    • All goods supplied under credit terms remain the property of Rapidtech Digital Solutions until full payment has been received. The CLIENT shall not sell, transfer, or dispose of such goods until payment is made in full.
    • Rapidtech Digital Solutions reserves the right to reclaim the goods if payment is not received and credit terms are violated.
  6. Default on Credit:
    • If the CLIENT defaults on their credit obligations, Rapidtech Digital Solutions reserves the right to take appropriate legal action to recover the outstanding debt. This may include engaging third-party debt collection agencies or legal representatives.
    • The CLIENT will be responsible for all costs incurred by Rapidtech Digital Solutions in pursuing debt recovery, including legal fees and collection charges.
  7. Review and Adjustment of Credit Terms:
    • Rapidtech Digital Solutions reserves the right to periodically review the CLIENT’s credit account. If the CLIENT’s payment history is unsatisfactory, or if financial circumstances change, the credit terms may be adjusted or credit facilities may be withdrawn.
    • Adjustments to the credit limit or terms will be communicated to the CLIENT in writing.

General Terms and Conditions

  1. Documentation Updates:
    • The CLIENT must notify Rapidtech Digital Solutions promptly of any changes to their business or contact information, including changes to directorship, company registration status, or tax compliance status. Failure to provide updated information may result in a review or suspension of credit terms.
  2. Confidentiality:
    • Rapidtech Digital Solutions will handle all CLIENT information provided in the credit application with strict confidentiality. This information will only be used for the purposes of assessing the CLIENT’s creditworthiness and managing their credit account.
  3. Dispute Resolution:
    • Any disputes regarding the credit terms, payments, or services will be resolved through direct communication between the CLIENT and Rapidtech Digital Solutions. If a resolution cannot be reached, both parties agree to resolve the matter through mediation or arbitration in accordance with the laws of the jurisdiction in which Rapidtech Digital Solutions operates.