Credit Policy Coop Embrun

(Effective September 2022)

Terms & Eligibility

A line of credit may be extended for residential, commercial or agricultural accounts. Unless otherwise specified, accounts are due and payable the 20th day following the month of billing.

Payments are applied based on the payment remittance (if provided); otherwise, they are applied to any outstanding balance from the previous billing cycle (which includes outstanding balances of principal and any applicable fees and monthly interest charges relating thereto), and then to any purchases made in the current billing cycle.

Any customer payment returned for insufficient funds will incur a $50 fee.

Accepted methods of payments are cash, cheques, online banking, debit, credit.

Credit card payments on statements are not accepted.

Independent

No credit at any time.

Energy

Tenants are eligible for credit if the landlord guarantees.

BUDGET BILLING PROGRAM (equal billing)
Residential customers are eligible to enroll in a budget billing program for the duration of the heating season (September to June). Equal monthly payments are made based on an estimate of the total heating cost for that customer for the season. Current customers must pay any outstanding balance prior to enrollment.

The customer must have the ability to complete pre-authorized payments to be eligible. Automatic payment is due the 20th of the month. Payment on any remaining balance from the season (as of June 30th) will be automatically processed on July 20th.

Crops

To guarantee prices, client must prepay in totality using cash, cheque, online banking, or FS Agri-Finance.

Wholesale

Payment on wholesale accounts is due ten (10) days from the invoice date. If payment or acceptable arrangements are not made, deliveries will stop until payment is received.

Pre-authorized Payment (PPA)

Customers have the ability to complete pre-authorized payments. Automatic payment will be drawn the 20th of the month.

Charge Cards

Individual Accounts

Members are entitled to one card for every name included on the account, up to a maximum of 2 cards. A $10 minimum fee for card reprint may be applied for lost or damaged cards.

Business Accounts

Commercial clients will automatically be issued 2 cards. In the case that more cards may be required, a minimum fee of $10 up to 5 additional cards will be applied. Any additional cards will be provided at a cost of $2/card. A $10 minimum fee for card reprint may be applied for lost or damaged cards.

Application Process

All clients applying for credit are encouraged to become a member of the cooperative. An application must be made and approved, and an account set up before any sale is made, card is issued, or tank is installed.

Applications will be approved at the following levels based on the amount of credit requested:

  • Less than $5,000: Controller
  • Under $200,000: Chief Financial Officer
  • Over $200,000: CEO/General Manager

The applicant will be notified within fourteen (14) business days if their application is approved or denied. Approved applicants will receive a welcome letter that reiterates the credit policy and terms of payment.

Individual Accounts

For individuals, the application and Equifax credit report will be evaluated. In general, an application is APPROVED if:

  • The credit score is 650 or above AND
  • There are no collection actions, public records (such as bankruptcy or judgment), or late payments

In general, an application is DECLINED if:

  • The credit score is below 650 OR
  • There are collections, public records, late payments, current balances past due, too many inquiries

Credit Limit

Credit limits are determined based on customer request and credit score. If the customer requests a credit increase, a new application may be required.

Past due accounts

Unless otherwise specified, all customer accounts must have their statements paid within twenty (20) days from the original monthly statement date. All customer accounts will be considered past due when a balance remains unpaid on the twenty-first (21st) day from the original monthly statement.

All customer accounts at sixty (60) days past due will receive written communication that the account will be placed on a credit hold if payment is not received.

All customer accounts at ninety (90) days past due will be placed on a credit hold. Written communication will be sent notifying the customer their account is on hold. The customer will also receive a phone call advising that a credit hold has been placed on their account. Any purchases must be cash only until the account is current. The delivering branch will be notified of these terms. Continued contact will be made to the customer by phone to attempt to secure payment.

All customer accounts one-hundred twenty (120) days past due will receive a final letter attempting to secure payment. Failure to respond will result in initiation of collections process by third party agency. In the event of default and if the account must be submitted to a collection agency, an amount equal to 30% of the balance owed at that date will be added to the account to provide for recovery costs.

Discount Eligibility

Any customer account with a past due balance is NOT eligible for any cash, prepay, or other discount programs until the outstanding balance is paid in full.

Patronage

All customer accounts with a past due balance will have any patronage earned applied toward the outstanding account balance. If patronage remains after the account is made current, the remaining patronage will be remitted to the customer.

Interest Charge

All customer accounts that are not paid by the month’s end following the statement due date will be subject to a 2% compounded interest charge.

FS Agri-Finance

Embrun Co-op has adopted FS Agri-Finance to better serve our grower clients.

This document is meant to act as an introduction to the service which can be offered by FS Agri-Finance to Embrun Co-op grower clients. All documentation issued by FS Agri-Finance takes precedence to the information in this document.  

General Terms & Conditions

Grower customers with a current Embrun Co-op account are eligible to apply for the FS Agri-Finance program. Approved customers receive a line of credit for purchases made from September to August. FS Agri-Finance accounts are subject to an interest rate of prime + 3%.

Accounts must be paid in full on or by March of the following year. If payment is not made on or by March 31st, the account will be considered past due and subject to 18% interest.

FS Agri-Finance payments must be made to Scotiabank directly.

Any payment made by the customer to the cooperative will be applied to any in-house balance on their Embrun Co-op account.

Application Process

For FS Agri-Finance accounts, a customer will complete the FS Agri-Finance application. If the line of credit requested is over $300,000, the past three (3) years of financial statements and income information will be requested. The financial statements will be used to determine minimum net worth, debt to net worth, and net worth trend. Approval will be determined by the CFO.

Past Due Accounts

Past due accounts with FS Agri-Finance will be managed by Scotiabank directly.