Custom Armor Group (CAG) extends credit to qualified distributors, dealers, and business partners under structured credit and collections standards designed to protect profitability, ensure fair treatment, and maintain strong financial relationships.
All applicants must review this policy before completing the Credit Evaluation Form and must acknowledge acceptance of these terms prior to submission.
Contact Information
Finance Department
Custom Armor Group
4270 Piedmont Parkway, Suite 102
Greensboro, NC 27410
Email: finance@customarmorgroup.com
Phone: 336-617-4667
Website: www.customarmorgroup.com
1. Purpose of Credit Evaluation
CAG’s credit evaluation process ensures that all approved accounts are financially responsible and capable of maintaining consistent payment performance.
Credit terms are extended only to organizations that meet the standards described below. Credit privileges may be modified or withdrawn if payment patterns change.
2. Credit Tiers and Terms
CAG assigns credit privileges according to a defined tier structure. Each applicant is reviewed and categorized based on credit history, order volume, payment behavior, and relationship standing.
| Tier | Criteria | Typical Terms | Notes |
|---|---|---|---|
| Tier 1: Prepaid | New accounts, poor payment history, or no references | Prepay / Credit Card / ACH prior to shipment | Default for all new dealers until history is proven. |
| Tier 2: Net 15 | 3+ successful prepaid orders, verified references | Net 15 days | Requires signed credit application & approval from Finance. Entry-level privilege. $5,000 limit. |
| Tier 3: Net 30 (Standard) | Solid payment history, credit references, moderate order volume | Net 30 days | Requires 6–12 months of on-time payments, strong DSO, and prior Net 15 history with approved application on file. |
| Tier 4: Strategic / Contracted Accounts | Government agencies, approved contract vehicles, or large distributors | Net 45+ | Must be pre-approved by VP Finance in coordination with CEO for strategic or high-value contracts. |
Note: All credit terms are reviewed every six (6) months or sooner if payment behavior changes.
3. Credit Approval Process
All new customers must complete the CAG Credit Application, available once an account has been established through the onboarding profile process.
CAG’s Finance team reviews each application, including:
- Two (2) trade references (minimum)
- Credit report or score (if applicable)
- Payment history with CAG
- Financial statements (when provided)
Approved credit terms are documented and stored with the customer’s record. No verbal approvals are permitted; all credit authorizations are provided in writing.
4. Credit Limit Controls
- Limits are assigned according to credit tier (examples: $5k, $10k, $25k, $50k).
- Any order exceeding the limit requires prepayment or written management approval.
- Accounts exceeding 30 days past due may have shipments temporarily suspended.
5. Collections and Low-Paying Customers
CAG does not extend financing to
customers who repeatedly miss payment terms.
Delinquency Process
- Day 1–5 Past Due: Courtesy reminder from Accounting.
- Day 6–15: Second notice issued; Sales Representative copied. Account flagged “Hold.”
- Day 16–30: Third notice issued; Sales Representative copied. Account flagged “Pending Suspension.”
- 30+ Days: Account suspended; no new quotes or orders accepted.
- 90+ Days: Formal collections notice issued; future orders require prepayment.
- Repeat Offenders: Permanently downgraded to Prepaid Only status.
6. Communication Protocol
- Sales personnel are not authorized to negotiate credit terms or extend payment deadlines.
- All credit and collections discussions are handled exclusively by the Finance Department.
- Reps may send friendly reminders to customers but must refer all financial matters to finance@customarmorgroup.com.
Official Statement to Customers:
“Our policy is consistent across all customers, we don’t extend beyond approved limits because it protects everyone’s supply continuity.”
7. Monitoring and Reporting
CAG’s Finance team issues a weekly accounts receivable report summarizing:
- Accounts past due
- Accounts on hold
- Active collection activity
Chronic late accounts are reviewed during Management Review meetings under CAG’s Quality Management System (ISO 9001:2015, Sections 9.1 and 9.3).
8. Risk Mitigation Measures
CAG may employ the following measures to manage credit exposure:
- 50% deposit requirement on large or custom orders
- Early payment discounts (1–2%) for eligible accounts
- Credit insurance for large or export transactions
- Strict written communication to prevent disputes
9. Credit Application Terms and Conditions
By submitting this credit application, the Applicant agrees to Custom Armor Group’s (CAG) Credit & Collections Policy, Dealer/Distributor Terms, and Non-Disclosure Agreement (NDA).
All information provided must be true and complete, and CAG is authorized to verify credit history and contact listed references.
The Applicant agrees to pay all invoices according to the agreed terms. Delinquent accounts may be subject to a finance charge of 1.5% per month or the maximum rate permitted by law.
The Applicant is responsible for any collection costs, legal fees, and related expenses incurred to recover overdue balances.
CAG may request updated financial information at any time and reserves the right to modify or terminate credit privileges at its discretion.
All sales are made F.O.B. shipping point, and risk of loss passes to the Applicant upon delivery to the carrier.
Returned merchandise requires prior approval and may be subject to restocking fees. Returned checks incur a $25 fee.
CAG complies with U.S. export control laws (ITAR/EAR) and data privacy laws (GDPR/CCPA). No warranties exist beyond those stated in CAG’s Terms and Conditions.
Submission of this application constitutes full acceptance of all referenced policies and acknowledgment of compliance with the Federal Equal Credit Opportunity Act.
10. Applicant Acknowledgment
By submitting the CAG Credit Application Form, the Applicant acknowledges:
- The information provided is accurate and verifiable.
- CAG is authorized to verify trade, bank, and credit references.
- The Applicant understands and accepts CAG’s credit policies, terms, and enforcement procedures.
11. Legal Notice
All Custom Armor Group products and transactions are subject to U.S. export control regulations, including the International Traffic in Arms Regulations (ITAR) and the Export Administration Regulations (EAR). Learn more here: CAG Trade Compliance
Buyers must comply with all applicable export and import laws. CAG products may not be exported, re-exported, or transferred to any prohibited entity under U.S. law.
All sales are governed by CAG’s published Terms and Conditions. Product specifications, pricing, and availability are subject to change without notice.
CAG values privacy and processes customer information in accordance with the General Data Protection Regulation (GDPR), California Consumer Privacy Act (CCPA), and applicable U.S. laws. By submitting information, you consent to its processing under CAG’s Privacy Policy and Terms of Use.
By submitting information through this website, you consent to the processing and storage of your data in accordance with CAG’s Privacy Policy and Terms of Use.
Distribution Program Application
