Credit Policy for Southwest Grain
Southwest Grain provides our creditworthy customers with short term convenient credit. We do not offer revolving credit accounts. All statement balances must be paid in full by the 11th of the month. Credit is a privilege and not a right; therefore the following conditions will apply.
- All new patrons must fill out either a Consumer or Commercial Credit Application and a Patronage Consent Form. Patrons who sell commodities to Southwest Grain must also complete a credit application in order to charge purchases. If existing patrons require a significant increase in their credit limit due to high dollar purchases, they will need to complete an updated credit application. All approved accounts will be given a credit limit based on their credit worthiness and credit needs. Accounts must not exceed their given credit limit. Southwest Grain reserves the right to declare any amount exceeding their credit limit due on demand.
- Southwest Grain offers a cash discount for purchases paid with currency or check. In order to get the cash discount, cash must be paid in advance, paid at the time of purchase, or paid within 10 days of delivery or pickup. In order to use the 10 day payment window, accounts must have an approved credit limit and be in good standing. Payment must be received within the 10 day payment window to receive the cash price. If Southwest Grain is not open on the tenth day, the payment must be made on the ninth day. It will be the patron’s responsibility to make sure any mailed payments reach us before the due date. Prepaid cash and cash payments will receive the best pricing on all products. Charge prices (Farm Plan, credit card or open account charges not paid within 10 days) will be higher.
- If charges are made and not paid within the 10 day payment window, the entire statement balance will be due by the 11th of the month following purchase. (Example: All purchases made in May would be due June 11th) Statement balances can not be sent to Farm Plan or a credit card for payment. Only individual invoices may be paid with a credit card or Farm Plan account. If your 10 day discount period has elapsed and you wish to pay your invoice with an alternate payment source, you must notify Southwest Grain of your intentions.
- If all charges are not paid in full by the 11th of the month following purchase, the account will be considered delinquent and collection proceedings will begin. Ag Liens may also be filed. Once an account is sent a certified letter, the patron must reapply for credit in order to charge. If we receive a judgment or file an Ag Lien, the patron must have board approval to charge. All delinquent accounts will receive a service charge of 1.5% per month (18% annually) on all past due amounts. Refusal to pay the service charge will terminate the patron’s charging privileges.
- If an account is on COD and payment is not available when the delivery arrives, the product will not be delivered. The patron will be assessed a $25 minimum service charge to cover the expense of the attempted delivery.
- Charge invoices must be paid on time regardless of a patron’s prepay dollars or amounts owed to them for delayed pricing or deferred payments.
- Southwest Grain does offer a budget billing program and a preferred open billing program for our creditworthy patrons. The budget billing program divides your yearly propane needs into 12 monthly payments. The preferred open billing program allows extended due dates for products during 3 defined periods of the year. If you are interested in these programs, please contact any Southwest Grain location.