DIVISION: ADMIN & GENERAL DEPARTMENT: FINANCE

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Credit Policy for Hotel

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OBJECTIVE:

To define proper evaluation and approval process of new customer accounts or credit
limit increases in order to reduce potential collection problems.

POLICY:

1. Credit should only be extended to customers who have provided evidence that
they are committed to satisfy all charges due as requested by the hotel, and who
also have been subject to a pre-arranged thorough review of their credit status.

2. The credit application must be formalized, stating maximum credit amounts,

payment terms and methods, people authorized to make bookings on behalf of
the debtors, etc.… All credit applications should be renewed every year.

3. An up-to-date authorized debtors listing must be maintained, stating the credit

limit and terms available to each debtor.

4. The Credit Supervisor is responsible for the review of the application and
investigation of the applicant’s credit history. All credit applications must be
approved by the Financial Controller and the General Manager.

PROCEDURE:

I- Credit Application procedure:

1. A company wishing to open a credit facility with the hotel must complete a hotel
credit application form (send by the Sales & Marketing department) stating:

- The company details (Name, address, corporate name, etc.…)

- The list of persons authorized to make bookings on behalf of the company

(Name, position, ID number, specimen of signature).

- The credit references.

- The invoicing details (Billing address, contact person, etc.….)

2. Once received, the Credit Controller must review the application for completeness
and accuracy. Missing or erroneous information my result in delays or rejection of the
application. Then the Senior Accountant / Financial Controller will perform a formal
check of the solvency of the company, through:

- The investigation of credit references given by the applicants.

- The inquiries made to other hotels in the group.

DIVISION: ADMIN & GENERAL DEPARTMENT: FINANCE
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Credit Policy for Hotel

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Detailed results of the inquiries should be attached to the credit application. For
company with past relationship with the hotel, any past trouble must be noted such as
returned cheques, non-compliance with payment terms, settlement disputes, etc.…

3. The credit limit must be reviewed regularly by the hotel management to ensure the
current validity of the limit granted. Any company in over-credit limit situation for 2 or
more consecutive periods should be analyzed during credit meeting.

4. Any changes in the credit limit must be formalized with a new credit authorization
form being approved by the Financial Controller and the General Manager and
subsequently attached with the debtor credit application.

5. The Financial Controller is responsible for performing regular checks to ensure the
filling is properly and accurately maintained.
DIVISION: ADMIN & GENERAL DEPARTMENT: FINANCE
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Credit Policy for Hotel

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III- Form samples:

CREDIT APPLICATION FORM:

NOTE: It is important that this form is completed in full. Insufficient information may result in unnecessary delay in
processing your application. All terms and conditions over leaf are deemed to be part(s) of this application and have been
read, understood and accepted by you in total at time of your application for credit facilities at the hotel.

Name of the Company or Firm: Nature of Business:

Address: Phone Number:

Type of Company: PRIVATE / PUBLIC LTD / SOLE PROPRIETOR/ PARTNERSHIP

(Delete where not applicable)
Authorized Capital: Paid-Up Capital: No. of Employees:

PARTICULARS OF PERSONS AUTHORIZED TO MAKE HOTEL ARRANGEMENTS, ISSUE

INSTRUCTIONS AND SIGN ON BEHALF OF COMPANY.

Name in Position Held ID Card or Passport Signature

BLOCK CAPITAL Number
1
2
3
4

NOTE: Please notify the hotel if there are changes or amendments to the above authorized signatories. If written notification is
not received, the above signatories will still be valid and the company is still liable or all changes incurred thereafter.

Company’s Bankers: Account No:

(Please State Branch)

Bank Address: Registrar of Company (ROC) No:

DO YOU OR YOUR COMPANY PRESENTLY HAVE OR PREVIOUSLY HAD AN ACCOUNT WITH OTHER HOTELS IN
THE ACCOR GROUP (if YES, please furnish the following particulars)

Name of Hotel: Address:

1
2
3
The undersigned (an authorized signature) hereby requests that a corporate account be opened at THE HOTEL. In connection with
the above particulars, the undersigned authorizes the receipt and exchange of credit information. The company will be liable for all
charges incurred at THE HOTEL, by the company’s guests unless otherwise instructed in writing. The company will be bound by the
terms and conditions contained over leaf upon approval of the application for credit facilities at THE HOTEL.
DIVISION: ADMIN & GENERAL DEPARTMENT: FINANCE
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Credit Policy for Hotel

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CREDIT FACILITIES-TERMS AND CONDITIONS

1) These terms and conditions are deemed to be part(s) of the application for credit facilities at THE HOTEL.
2) Granting of credit facilities shall be at the sole discretion of THE HOTEL.
3) All charges incurred by the company shall be billed to its business address and settlement of outstanding shall be payable
within the credit term upon presentation of the bills.
4) The amount of each bill should be paid excluding of any bank charges and in the currency of the bill.
5) The company must inform THE HOTEL, if there are any changes / amendments to the authorized signatories or any other
related matters. Prior to the receipt of written notification, the company will still be liable for any charges incurred
thereafter.
6) This credit facility is not transferable to other companies, sister companies or associates companies of the approved
company.
7) For all credit balances which are not cleared within the credit term after receiving the bill, 2 (two) percent interest per
month will be applied and reservation will be treated on cash basis.
8) The hotel reserves the right to withdraw, suspend or increase the credit facilities at any time. Such notification shall be
made in writing to the company informing them of the hotel’s decision without having the assign any reason whatsoever.
9) The company undertakes to reimburse and to indemnify the hotel for all loses expenses and damages that have resulted
directly or indirectly from the negligence and/or malicious actions of the company and/or his guests.
10) This present form is valid until DATE.
11) In order for this credit facility to be valid, please return this completed application by facsimile or email, and we shall
reply to your application as soon as possible.
SIGNATURE & COMPANY STAMP:

*Please attach a copy of your passport or identity card for verification

Name: Designation:

CONTACT PERSON RESPONSIBLE FOR THE PAYMENT

Name: Position:

Tel : Fax. :
E-mail Address: Signature:

Mailing Address:

OPERATION MANAGER /handling agent

Name: Position:

Tel : Fax. :
E-mail Address: Signature:

Mailing Address:

COMMENTS / SPECIFIC PAYMENT PROCEDURE

DIVISION: ADMIN & GENERAL DEPARTMENT: FINANCE
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Credit Policy for Hotel

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CREDIT AUTHORISATION APPROVAL FORM

Name of Company or Firm:

Recommended by: (Name & Signature Position:

Remarks (if any):

Verified by: (Name & signature) Position:

Credit Limit Granted:

Sales Manager: Approved / Disapproved

Financial Controller: Approved / Disapproved

General Manager: Approved / Disapproved

DIVISION: ADMIN & GENERAL DEPARTMENT: FINANCE
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Credit Policy for Hotel

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LETTER OF OFFER- CREDIT FACILITY

Company Name & Address

Re: credit Application

With reference to your credit application dated________, we are pleased to inform you
that your application for credit facility with us has been approved with a credit term of
_______days (in addition to the conditions specified in the application form)
1. All charges incurred by the company shall be billed to its business address and
settlement of outstanding shall be payable within the credit term based on the date of
the invoice or statement of account, whichever comes first.

2. The hotel reserves the right to withdraw or suspend the credit facility at any time
without notice or having to assign any reason whatsoever.

We prefer payment by bank transfer, with the hotel bank details as follows:
Bank Name :

Bank Address :

SWIFT Code :

Account Name :

Account No :

Should you have any query, please do not hesitate to contact us.

Yours faithfully,

Financial Controller General Manager

Cc. RM/FOM/SM/Credit Supervisor