Page 35 - Gulf Coast Division - Training Manual 5 -18

PAGE NUMBER
Ben E. Keith Company POLICIES/PROCEDURES DOCUMENT NUMBER
3 of 8
501
DATE ISSUED
SECTION: 5.0 CREDIT 11/1/2005
SUBJECT: CREDIT POLICY ORIGINATING DEPARTMENT
CORPORATE

3.0 Credit Applications

3.1 All new accounts are COD until a fully completed credit application is approved by
the Branch Credit Manager. No exceptions. Accounts may be sold NET 14 after
approval. It is the salesperson's primary responsibility working with the Branch Credit
Manager to see that credit applications are both complete and satisfactory.

3.2 No account may qualify for NET 30 or EOM billing until at least sixty (60) days of
timely payments have been received under the NET 14 status and approval of the
Branch Credit Manager has been obtained. Any exception to this requirement must
first be approved by the Branch Credit Manager. Net 30 or EOM billings are not to be
offered or suggested to any customer, but will be considered only if the customer
demands same.

3.3 A change in the ownership of a customer shall cause an account to be a new
account. It shall be the duty of the salesperson to keep abreast of such changes.
Any changes in ownership shall require a new credit application to be completed and
approved.

3.4 Any existing account may be requested to submit a new credit application annually.
The Branch Credit Manager will be responsible to inform the salesperson at the time
a new credit application is required.

3.5 Credit sales to a new customer before credit has been approved will be the personal
responsibility of the salesperson. Any bad debt write-offs resulting from such
shipments will be deducted in full from the salesperson's pay. No exceptions can be
made to this paragraph without the prior approval of the Vice President of Credit.

3.6 We discourage salesperson’s charging a customer’s purchase to their personal account.
If the invoice is unpaid at the end of the month, it will be deducted from the salesperson’s
pay.

3.7 Any new customer whose projected accounts receivable balance is $75,000 per month or
greater will be required to submit an audited financial statement with their credit
application. A copy of the financial statement is to be sent to the Vice President of Credit
for review and approval before any commitments or shipments are made. No exceptions
are to be made to this policy without the approval of the President of the Food Division,
Chief Financial Officer, and the Vice President of Division Management.

3.8 Terms for accounts that are in bankruptcy, receivership, or foreclosure will be CASH or
on a secured basis. Unsecured open account terms to an account that is in any of the
above legal proceedings may only be extended by the VP of Credit. The VP of Credit will
make the decision on any National Account. On Street & Program accounts, if the VP of
Credit considers extending open account terms he/she will first review with the Branch
Managers of the shipping branches so that they may decline to extend terms if they so
choose.

REVISION DATE OF LATEST REVISION SUPERSEDES ISSUE DATED
07/01/2015 07/01/2015 07/01/2014
APPLIES TO
Entire Company Food Division Only Beer Division Only Other (see text)