Document background
A Supplier Credit Agreement is essential for businesses operating in Australia that extend or receive trade credit in their commercial operations. This document is typically used when a supplier agrees to provide goods or services on credit terms, rather than requiring immediate payment. The agreement establishes the credit relationship, including credit limits, payment terms, security arrangements, and enforcement mechanisms. It must comply with Australian law, particularly the Personal Property Securities Act 2009, Competition and Consumer Act 2010, and relevant state legislation. The document is crucial for managing credit risk, establishing clear payment obligations, and providing legal remedies in case of default. It should be customized based on the specific industry, credit terms, and security requirements of the business relationship.
