Where using standard credit terms is not applicable, payment in advance is the recommended option.

Payment in advance is to be used:

• if after assessing the credit worthiness of the customer, the decision is not to extend credit
• if the fulfilment of the supply requires the incurring by the University of external costs or the purchase of substantial amounts of materials or components
• if the supply requires a substantial commitment of time and resources within the University prior to delivery which cannot be recovered if the customer subsequently defaults
• if there is no satisfactory past trading with the customer or if the customer does not have a positive credit rating
• if the goods in question cannot readily be recovered and resold e.g., events such as conferences, seminars, courses, and room hire. Non-payment should result in non-attendance/access
• for overseas customers where it is difficult to sue for payment

Charging a deposit: where full payment in advance is not appropriate, requesting a deposit from the customer at the time of accepting order is an effective way to limit future debt and may be combined with further stage payments.

Staged payments: For long-term courses of high value or production of a specific piece of equipment over a length of time, billing may be staged over a set period.

Latest version 16 April 2024