UNDERLYING PHILOSOPHY
The Cooperative Elevator Co. was formed to market crops produced by members, and to cooperatively purchase and distribute farm inputs. Our expertise and experience is in the elevator and farm supply business. It is not the intention of the Cooperative to be a bank or a financial institution. The Cooperative does not employ loan officers or other individuals with credit backgrounds or training. We do not reserve sufficient capital to fund farm loans. Our members and patrons should not expect us to finance their farming operations. Rather, they are encouraged to look for financing from financial institutions - banks, credit unions, the Farm Credit System, etc., that are in fact in the lending business.
The credit we offer is intended to serve as CONVENIENCE CREDIT only, as it would be an inconvenience for our patrons or their representatives to pay upon delivery every time they purchased a product or service from the Cooperative.
CREDIT POLICY
"That the Cooperative Elevator Co. adopt as policy the practice of not allowing charge sales to customers having a balance owing on an invoice which is not paid by the 20th of the month proceeding the purchase. Management is to have authority to make exceptions to the general policy. Exceptions normally will be made only after the customer has made arrangements with the Cooperative to clear the delinquent obligation.
CREDIT TERMS AND FINANCE CHARGES
Invoices are due the 20th of the month following the purchase. Finance charges are computed at the rate of 2% per month, or a minimum charge of two dollars ($2.00), applied to the unpaid account balance.
CREDIT PROCEDURES AND PRACTICES
New customers not approved for credit will be asked to complete a credit application. Credit will not be extended until the credit application is approved.
Customers may be sent a letter if their account becomes past due. This letter informs the customer they are no longer eligible for charge purchases, but are welcome to do business on a "cash basis" until the account is within terms of the credit policy and their charge status has been reinstated.
Accounts with past due balances not responding to telephone calls, letters, or other contact from cooperative personnel may be forwarded to our attorney or Small Claims Court for collection.