The provision of credit to customers is a standard business practice. The conditions under which credit can be extended are when:-
- It is market practice
- There is an absolute credit limit for each debtor
- The debtor agrees to pay the account when due as set out within client contracts
- The client provides information that allows for a complete credit assessment
For major hirers no formal credit limit is set due to the financial offset arrangements currently in place that takes into account advance ticket sales.
For casual hirers the provision of credit must be in accordance with Sydney Opera House approved policy.
Effective credit control is achieved when:
- There is a clear and executed contract with the debtor that documents the mutual responsibilities including credit terms and implications of non-compliance
- The House provides the services required under the contract and invoices only for those services
- If required, the House provides extra services on the basis of a variation signed by the client
- Invoices are produced promptly
- Clients’ queries are dealt with expeditiously; monthly debtor statements are issued with appropriate payment requirement text, based on age of debts
- Appropriate follow up action is taken on long outstanding debts