Document background
The Del Credere Agent Agreement is essential for businesses operating in Nigeria that wish to expand their market reach while minimizing credit risk. This document is particularly valuable when a principal company wants to delegate both sales responsibilities and credit risk management to a trusted agent. The agreement, governed by Nigerian law, establishes a specialized agency relationship where the agent, known as a del credere agent, not only facilitates sales but also guarantees the creditworthiness of customers they bring to the principal. This arrangement is commonly used in international trade, distribution, and wholesale sectors where the principal may have limited knowledge of local customers' creditworthiness. The agreement includes comprehensive provisions for commission structures, guarantee obligations, credit assessment procedures, and reporting requirements, ensuring compliance with Nigerian commercial and banking regulations.
