Members' Notice - Settlement Discount Entitlements

• 3 years ago

PLUMBERS SUPPLIES CO-OP

SETTLEMENT DISCOUNT - 3 DAY GRACE PERIOD

Change affecting Member Entitlement effective 31 July 2021

For over 30 years, Plumbers Supplies Co-op has provided you, our members, with a 3 day grace period in addition to the standard 30 day terms to allow time for your payments to reach us. This practice was designed to ensure that all cheques posted to us were received and processed before we closed the month, and that you, our members, received your entitlement to the 2.5% settlement discount and rebate.

Times have changed, particularly with technological advances in the banking industry. Today, cheque payments represent a very low proportion of payments we receive. The vast majority of payments are processed electronically, either EFT, BPAY or via our payment portal on our website.

For a number of years now, our suppliers have expected us to make our monthly payment by the end of month, normally without a grace period.

Due to the quicker and easier way of making and receiving payments, the Plumbers Supplies Co-op Board of Directors have decided to remove the 3 day grace period, effective 31 July 2021.

What this means for you

Any payment received by Plumbers Supplies Co-op after the end of month, will not attract a Settlement Discount or Rebate.

To ensure you receive your entitlement to the 2.5% settlement discount:

• Any EFT or BPAY payment should be processed by you, 2 days prior to end of month to ensure we receive the payment by end of month;
• Payments can be made at any Plumbers Supplies Co-op branch up until close of business on the last business day of the month;
• Payments via our website can be made until close of business on the last business day of the month;
• If a cheque is being sent, we suggest it is sent at least a week prior to end of month to increase the chances of it being received by the end of the month.

Our Credit Team will be in touch with members that still pay by cheque, to talk though alternative methods of payment and to ensure that you are fully aware of the business changes and are not disadvantaged by this change.

For the vast majority of you, our members, who have always ensured their payments are processed and received prior to the end of month, this change will not impact you, and we thank you for your on-going support.

If you have any questions relating to this change, please email our Credit Team on credit@pscoop.com.au