Credit Policy

This Credit Policy carries direct monetary consequences for both PrimeServe and the Buyer. Buyers are advised to read the policy carefully before applying for or accepting credit terms. Acceptance of credit terms constitutes a binding contractual commitment to pay on the due date.

1. Introduction

This Credit Policy governs the grant, use, monitoring, and recovery of business credit extended by Primeserve Facility Solutions ("PrimeServe") to its business buyers ("Buyer") for the purchase of products through the PrimeServe Platform. This Credit Policy is incorporated into and forms part of the Terms and Conditions.

2. Applicability

This Credit Policy applies to every Buyer that places an order on credit terms with PrimeServe. Buyers paying through advance payment, UPI, COD, or other non-credit methods are not subject to this Credit Policy in respect of those transactions.

3. Discretionary Nature of Credit

Credit is offered solely at the discretion of PrimeServe. No Buyer has an automatic right to credit. PrimeServe reserves the right to grant, refuse, suspend, modify, or withdraw credit at any time, without assigning any reason, subject to settlement of any outstanding amount.

4. Eligibility for Credit

To be considered for credit, the Buyer must:

• Be a verified business with a satisfactory operational history;
• Have a registered office or place of business within India, and operate within PrimeServe's serviceable area;
• Have a valid GSTIN (where applicable to the Buyer's turnover and business model);
• Submit the documents listed in clause 7 below;
• Not have any prior history of cheque bounce, credit default, or fraud reported in respect of PrimeServe or any related party;
• Pass internal verification by the PrimeServe credit team.

5. Credit Application Process

To apply for credit, the Buyer shall:

• Submit the credit application form available on the Platform or through PrimeServe's sales representative;
• Provide accurate and complete information regarding the business, ownership, financial position, and bank details;
• Submit the supporting documents listed in clause 7;
• Provide an authorization letter signed by an authorized signatory of the Buyer entity authorizing PrimeServe to verify the information and to process credit applications and transactions;
• Cooperate with PrimeServe in any reference checks, telephonic verification, or in-person visits.

PrimeServe shall communicate the outcome of the credit application within a reasonable period, typically within 7 (seven) to 14 (fourteen) working days of receipt of the complete application.

6. Verification by PrimeServe

PrimeServe may verify the information submitted by the Buyer through public registries (such as the GSTIN portal), trade references, internal reviews, telephonic interviews, on-site visits, and other reasonable means. The Buyer consents to such verification by submitting the credit application.

7. Documents Required

The following documents are typically required for a credit application:

• Copy of GST registration certificate (where applicable);
• Copy of PAN card of the business entity;
• Proof of business address (utility bill, lease deed, property tax receipt, or similar);
• A cancelled cheque from the Buyer's primary current account;
• Authorization letter signed by an authorized signatory, on the Buyer's letterhead;
• Bank statement for the last 6 (six) months;
• Trade references (where requested);
• Identity proof of the authorized signatory and key directors / partners / proprietors;
• Any other document PrimeServe may reasonably require to assess creditworthiness.

All documents shall be submitted in clear, legible scanned form. Submission of forged, fabricated, or misleading documents shall constitute fraud and shall result in immediate rejection of the application, blacklisting of the Buyer, and may attract legal action.

8. Credit Limit

Where credit is approved, PrimeServe shall communicate to the Buyer:

• The approved credit limit (in INR);
• The applicable credit period;
• Any conditions or restrictions; and
• The effective date of the credit facility.

The Buyer's outstanding balance (sum of all unpaid invoices) shall not, at any point of time, exceed the approved credit limit. Where the Buyer attempts to place an order that would breach the credit limit, the order may be held, partially fulfilled, or rejected at PrimeServe's discretion until prior balances are settled.

As the Buyer establishes a satisfactory payment record on PrimeServe, the credit limit may be reviewed and increased at PrimeServe's discretion. Buyers may also request a credit limit increase, which shall be evaluated based on payment history, order volumes, and updated documentation.

9. Credit Period

The standard credit period is 45 (forty-five) days from the date of invoice. The credit period may be customized for specific Buyers under a separate written agreement, particularly for enterprise Buyers with formal procurement and accounts-payable cycles.

Each invoice shall clearly state the invoice date and the corresponding due date. The Buyer is solely responsible for tracking due dates and ensuring timely payment.

10. Credit Approval and Rejection

PrimeServe reserves the right to approve or reject any credit application without assigning a reason. Rejection of a credit application does not preclude the Buyer from continuing to transact on the Platform on advance payment, UPI, COD, or other non-credit methods.

11. Credit Limit Revision

PrimeServe may revise (increase, decrease, or freeze) the credit limit of any Buyer at any time, based on payment behavior, order patterns, market conditions, internal risk assessment, or any other reasonable consideration. Buyers shall be notified of any reduction or freezing of the credit limit. Increases may be implemented automatically based on payment performance.

12. Credit Suspension or Withdrawal

PrimeServe may suspend or withdraw the credit facility, with immediate effect, in any of the following circumstances:

• Failure to pay any outstanding amount by the due date;
• Repeated short payments or unjustified deductions;
• Cheque bounce or payment dishonor;
• Material adverse change in the Buyer's financial position;
• Initiation of insolvency, winding-up, or liquidation proceedings against the Buyer;
• Submission of false or misleading information;
• Suspected fraud or unauthorized use of the Buyer's account;
• Violation of any provision of the Terms and Conditions;
• Court or regulatory order; or
• Any other circumstance which, in PrimeServe's reasonable opinion, increases the risk of non-payment.

Upon suspension or withdrawal, all outstanding amounts (regardless of original due date) may be declared immediately due and payable at PrimeServe's option.

13. Invoice Due Dates

Each invoice shall mention the due date, calculated as the invoice date plus the applicable credit period. Where the due date falls on a Sunday or a public holiday, the next working day shall be the effective due date.

14. Payment Obligations

The Buyer shall:

• Make payment in full (less only any agreed credit notes or set-offs) on or before the due date;
• Make payment by the methods notified by PrimeServe (typically NEFT/RTGS/IMPS to PrimeServe's designated current account, or through the integrated payment gateway);
• Quote the relevant invoice number(s) in the payment narration;
• Send the payment advice and UTR / transaction reference to the PrimeServe accounts team within 1 (one) working day of payment;
• Not deduct TDS unless required by law and against a valid TDS certificate issued in PrimeServe's name.

15. Partial Disputes

Where the Buyer disputes a portion of an invoice, the undisputed portion of the invoice shall be paid in full by the due date. The disputed portion shall be subject to the discrepancy reporting and resolution process under the Terms and Conditions and the Refund Policy. The Buyer shall not withhold the entire invoice amount on account of a partial dispute.

16. Late Payment Charges

Where any invoice remains unpaid beyond the due date, PrimeServe shall be entitled to charge late payment charges as follows:

• Interest at the rate of 2% (two per cent) per month, calculated on the unpaid invoice amount on a daily-accrual basis, from the day after the due date until the date of actual realization of payment; OR
• A flat charge of ₹100 (Rupees one hundred) per day, on the overdue invoice;
• Whichever is higher.

Late payment charges shall be invoiced separately and shall themselves be payable within 7 (seven) days of the date of such invoice. The charging of late payment charges shall be without prejudice to PrimeServe's other rights, including the right to suspend deliveries, withdraw credit, and initiate recovery proceedings.

17. Recovery Costs

Where PrimeServe is required to engage external collection agencies, legal counsel, or initiate legal proceedings (including arbitration or litigation) for recovery of overdue amounts, the Buyer shall be liable to reimburse all reasonable costs and expenses incurred, including legal fees, court fees, arbitration costs, and collection agency charges, in addition to the principal and late payment charges.

18. Credit Hold

Where any invoice is overdue or where the Buyer is otherwise in breach of this Credit Policy, PrimeServe may place the Buyer's account on credit hold, with the following consequences:

• New orders may not be accepted;
• Pending orders may be held or cancelled at PrimeServe's discretion;
• All future orders may be required to be paid in advance until the credit hold is lifted;
• All outstanding invoices may be declared immediately due and payable.

19. Order Blocking for Overdue Accounts

PrimeServe's order management system may automatically block the placement of new orders by any Buyer whose account is in arrears beyond a defined threshold. The Buyer shall not be entitled to claim any loss arising from such order blocking.

20. Set-Off and Adjustment

PrimeServe may, at its discretion, set off any amount due from PrimeServe to the Buyer (such as approved refunds, credit notes, or replacement adjustments) against any amount due from the Buyer to PrimeServe, without further notice.

21. Credit Notes

Where a credit note is issued to the Buyer (for example, in respect of an approved return, short delivery adjustment, or invoice correction), the credit note shall be applied against the next invoice or, where there are no further outstanding invoices, refunded in accordance with the Refund Policy.

22. Returned Goods and Credit Adjustment

Where goods are returned and the return is approved under the Refund Policy, the credit note shall be issued in accordance with applicable GST law, and the corresponding amount shall be adjusted in the Buyer's ledger.

23. Third-Party Credit / BNPL Disclaimer

PrimeServe may, in future, partner with third-party financing or buy-now-pay-later providers to extend credit to Buyers. Such third-party credit shall be governed by the terms of the relevant provider, and PrimeServe shall not be liable for any dispute arising under such third-party credit arrangements except to the extent of the underlying supply of goods.

24. Enterprise-Specific Credit Agreements

Enterprise Buyers may enter into separate written master credit or supply agreements with PrimeServe, which may modify or supplement the standard credit terms. In the event of any conflict between such written agreement and this Credit Policy, the terms of the written agreement shall prevail in respect of the enterprise Buyer.

25. Fraud or Misuse of Credit

Any of the following shall constitute fraud or misuse of credit:

• Placement of orders by any person without authority of the Buyer;
• Placement of orders with no genuine intent or capacity to pay;
• Submission of false or fabricated documents in connection with the credit application;
• Diversion or resale of goods in breach of the Terms and Conditions;
• Refusal to acknowledge delivery of goods that have actually been delivered;
• Any other act of fraud, misrepresentation, or dishonest conduct.

Where fraud or misuse is suspected or established, PrimeServe shall be entitled to (a) immediately suspend or terminate the account; (b) declare all outstanding amounts immediately due and payable; (c) initiate civil and / or criminal proceedings; (d) blacklist the Buyer and its authorized signatories; and (e) report the matter to law-enforcement and regulatory authorities.

26. Personal Responsibility of Authorized Signatory

The authorized signatory who executes the credit application or authorization letter on behalf of the Buyer represents and warrants that they are duly authorized by the Buyer to do so. Where it is established that the authorized signatory acted without authority, such signatory shall be personally liable to PrimeServe for any loss arising as a result, in addition to the Buyer's liability.

27. Account Suspension for Non-Payment

Where any invoice remains unpaid for more than 30 (thirty) days beyond the due date, PrimeServe may, in addition to other remedies:

• Suspend the Buyer's ability to log in to the Platform;
• Issue a formal demand notice;
• Refer the matter to a collection agency;
• Initiate legal proceedings;
• Where applicable, refer the matter to MSME Samadhaan or initiate proceedings under the Insolvency and Bankruptcy Code, 2016, at PrimeServe's option;
• Disclose the default to relevant credit information bureaus, where permitted by law.

28. Legal Action for Non-Payment

Where amicable resolution fails, PrimeServe shall be entitled to initiate any one or more of the following:

• Civil suit for recovery of outstanding amounts together with interest and costs;
• Arbitration proceedings under clause 43 of the Terms and Conditions;
• Summary suit under Order XXXVII of the Code of Civil Procedure, 1908;
• Application under section 138 of the Negotiable Instruments Act, 1881, in case of cheque dishonor;
• Insolvency proceedings under the Insolvency and Bankruptcy Code, 2016, where the Buyer is a corporate person and the threshold is met.

29. Governing Law and Jurisdiction

This Credit Policy is governed by the laws of India. Disputes shall be resolved in accordance with the dispute resolution and jurisdiction clauses set out in the Terms and Conditions (Bengaluru, Karnataka).

30. Contact for Credit-Related Matters

Credit applications, payment advice, dispute notices, and queries should be addressed to:

• Email: info@primeservefs.com
• Phone: +91 7795242918
• Address: No. 5/1, Jogpalya, Halasuru (Ulsoor), Bengaluru – 560008, Karnataka, India
• Hours: Monday to Saturday, 9:00 AM to 9:00 PM IST
• Chat & Call Support: 24/7

31. Legal Review Disclaimer

This Credit Policy has been drafted as a standard policy. The applicability of the late payment charges, recovery rights, and remedies is subject to applicable law and the specific facts of each case. Independent legal advice is recommended.