Balthier Advertising Agency Corporation Credit Policy

Objective
To ensure that all payments collected by collection personnel from customers are
remitted to the company within the prescribed payment terms, standard
discounts/payment schemes are followed, past due or uncollected accounts are avoided
through monitoring and updating of customers daily account balances.
General Policies

1. Company will bill client monthly unless otherwise provided on the advertising
purchase contract.

2. Invoices shall contain client name/product, date, time, ad specifications and cost.

3. Payment arrangement is 50% down payment after Cost Estimate is approved

and another 50% full payment after project is done unless credit has been
established. Once credit is established, payment by client is due within 30 days
after acceptance of invoice and delivery receipt.

4. For prompt payments, company will provide 2% discount on the total project
cost. If payment is not received within the specified time, client agrees to pay all
reasonable collection costs, costs of suit and reasonable attorneys' fees incurred
in enforcing the agreement. If payment is not received within the specified time,
the company also reserves the right to:

a. cancel existing projects

b. refuse new projects

c. pursue any rights and remedies it may have under applicable laws

d. interest charges may applied:

Terms Interest Rates

 (after delivery date )
1 – 30 days 2 % surcharge

31 – 60 days 2.5% surcharge

61-90 days 3% surcharge

5. When any part of an account for advertising becomes delinquent, then the entire
amount owed shall become due and payable and company may refuse to
produce further advertising materials.

6. There will be a Php 2,000.00 charge for any check not honored by the bank.
Returned checks must be replaced with certified/cashier/wire transfer funds
within 48 hours of notification. Company reserves the right to withhold further
advertising pending receipt of replacement funds.

7. In the event an account is referred to a third party for collection, clients agrees
to pay collection and/or attorney fees, as well as court costs incurred to effect
collection.

8. In case the company failed to collect past due accounts, bad debts will be
declared after six months.

9. Terms, conditions, rates or agreements not set forth herein or in then-current

rate schedules are not binding on company. Sales representatives and account
executives are not authorized to modify these terms and conditions.

Justification and Additional Input:

1. Concerns regarding PPD is finalized to 2% since as our first surcharge for 1

month past due is 2% also (just to be equal and data herein is just fictional
but as per Dr. G we must adapt the real situation).

2. Payment terms is break down to 50% DP and 50% FP.

3. We just need to emphasized here that after 6 months is the declaration of
bad debts ( because we need to stick on the story that it was stated there
they declared bad debts after 6 mos) Actually 6 mos. is too short to declared
bad debts pero since yun na ang nasa story need natin panindigan yun. More
focus tayo sa solution which is the bank assignment.

4. Si Peter will provide the agreement between Company and the bank (terms
and conditions)

5. If need pa po ang MOA, then good po. Kindly show us na lang po.