EULER HERMES SERVICES UK LIMITED

Most of the company's suppliers insist on using their own standard terms and conditions; the most common payment terms are 30 days from date of invoice. In most cases, the company will incorporate/ agree to payment terms of 30 days from either date of invoice or date of receipt of invoice. In addition to other remedies available to a supplier, as a consequence of late payment by Euler Hermes, the contract will usually give the supplier the right to charge interest, at the daily rate specified therein, on the overdue sum from the due date until the date on which payment is made (whether it is before or after judgment).

In all cases, the company will ensure that the supplier has a usual contact within the Euler Hermes department involved in negotiating the contract in question, who will act as the first point of contact for all matters and issues that arise in connection with that contract. For contracts with key suppliers, the company incorporates a staged escalation procedure for the resolution of disputes between the parties, before any litigation or other alternative dispute resolution procedure can be commenced. Usually, the contract will require that a party should provide written notice of any disputed matter arising under the contract to the other party, following which specified individuals from each party will attempt to resolve the dispute within a set period (between 14 - 30 days). In the first instance, negotiations will often take place between a primary contact/manager at Euler Hermes and the account manager/executive for the supplier. If they are unable to resolve the dispute then the matter is escalated in stages to individuals of increasing seniority for each party; for Euler Hermes this will be the head of the relevant function/department, followed by the CEO. Failure by the parties to resolve the dispute using the escalation procedure entitles either party to commence litigation or other dispute resolution procedure stipulated in the contract.