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Payment of Mail for cash customers may be done in the following manner:
The following applies:
| Cash or Cheque: |
Electronic Bulk Delivery Notes must be
handed in at the Revenue Protection department. Mail
will only be accepted upon receipt of the Cash or Bank Guaranteed
Cheque for the value of the eBDN. |
| Electronic Funds Transfer: |
Process as above. However mail will only be accepted once the Finance department can confirm receipt of funds in the Post Office Bank account. |
| On account: |
Bulk Mail can be lodged on credit account once you have complied with the Post Office Conditions for Credit. |
Granting of credit
Credit may be granted to clients when a fully completed and signed application form (annexure A) is submitted and the client has satisfied the credit requirements as laid down by the South African Post Office.
In addition the following will apply.
- Terms are 7 days from Date of statement. Accounts should be settled on or before due date or when the account exceeds the credit limit.
- A deposit or bank guarantee equal to six weeks' posting must be lodged with the South African Post Office. Such deposit will be held in a non-interest-bearing account for the duration of the credit facility. This guarantee or deposit will be reviewed on an annual basis and the debtor will be required to increase such deposit or guarantee should it be required.
- The guarantee or deposit will be held for the duration of business with the company. The Post Office will only utilize the deposit or guarantee to settle all outstanding amounts upon default of payment or when the account is closed.
- A credit limit will be set on each account equivalent to 4 weeks of the 6 weeks of the guarantee or deposit held.
- All clients will be subjected to a credit valuation before credit is granted. A new valuation must be done when you request your limit to be increased and at annual review. Credit will only be granted to a creditworthy client and a credit limit will be set for each client based on the valuation.
- The limits are reviewed annually or when there is a need, and may be adjusted based on your performance.
Sureties (where required)
Only the following sureties are acceptable to the South African Post Office:
- Guarantee of an acceptable financial institution (bank guarantee) - the guarantee must cover the full amount of credit granted, must be irrevocable and must be in the approved format.
- Security bonds of a creditworthy institution - the relevant institution will be evaluated in the normal manner before a security bond is accepted and the bond must be for the full amount of credit granted and must be irrevocable.
- Cash deposit covering the monthly credit granted or an amount equal to six weeks' posting (bulk mail clients)
Extended postings for mailing houses and clients without account facilities
A Bulk Mail Delivery Note cannot be used for split deliveries. In the case of Cash Deliveries this must equal the value of each Bulk Delivery Note.
Mailing houses
Mailing houses are responsible for payment of all items delivered by them unless their clients have been granted facilities by the South African Post Office in terms of this policy.
The mailing house has to apply for credit for their clients to whom the South African Post Office has not granted facilities. They will be granted credit on the same terms and conditions as any other client of the South African Post Office.
Default
Default occurs when -
- credit limits are exceeded; and/or
- payments are not received within the approved period.The necessary action will be taken to collect the outstanding amounts.
When bulk mail debtors/clients default on payment, they forfeit their rebates and annual incentives.
Settling debts
All debts must be settled in full on the due date. Trade debtors with whom no terms have been agreed on must pay cash on delivery (COD). The South African Post Office does not grant settlement discounts to debtors.
Interest
Interest will be charged at the Standard Bank prime rate plus two per cent on all debts not settled within the credit period granted or settlement terms agreed to with debtors.
Liquidation
As soon as it becomes known that a debtor has been placed under provisional or final liquidation or sequestration, the credit facility will be automatically revoked. Interest will be charged from the date of last payment to the date of final liquidation or sequestration. Continue on the next page
Example of application for credit facilities
The following is an example of an application for credit facilities:
» Click here to open the PDF file. (Requires Adobe Acrobat)
Example of guarantee
The following is an example of a guarantee:
» Click here to open the PDF file. (Requires Adobe Acrobat)
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