Document background
The Supplier Credit Agreement is a crucial commercial document used when a supplier agrees to extend credit to a business customer for the purchase of goods or services. This agreement, governed by Austrian law, is particularly important for transactions involving significant capital expenditure or ongoing supply arrangements where immediate payment is not practical or desired. The document establishes the credit facility's terms, including the credit limit, interest rates, repayment schedule, and any security arrangements, while ensuring compliance with Austrian banking and commercial regulations. A Supplier Credit Agreement becomes especially relevant in industries with large-scale purchases or long-term supply relationships, providing a structured framework for managing credit risk while facilitating business growth.
