take a credit against

14:57 Jun 28, 2020
English language (monolingual) [PRO]
Law/Patents - Law: Contract(s)
English term or phrase: take a credit against
In the event Buyer makes a payment in advance of the due date therefor, Seller may permit anticipation;
that is, Buyer may take a credit against such payment, based upon the date of such payment and the prime rate of Citibank, in effect on the date of invoice.

Does it mean that the Buyer can benefit from a discount if he makes an anticipated payment?
Thank you
Cristina Bolohan
Romania
Local time: 12:00


SUMMARY OF ALL EXPLANATIONS PROVIDED
4 +1Seller may credit Buyer's client account with interest given for making payment in advance
Daryo
5 -1treat the payment as duly made
MARK ROBERTSON
4The buyer will benefit from a discount
ِAdel Almergawy
5 -1Finance and Economics
Gabriel Ferrero
4 -1receive a discount
philgoddard


Discussion entries: 2





  

Answers


22 mins   confidence: Answerer confidence 5/5 peer agreement (net): -1
Finance and Economics


Explanation:
Take a credit against/towards means that instead of paying the overall amount of money due for a good in one time, the payment will be made over time.
It does not imply that the acquirer (buyer) will profit from a discount on the price of a good. If that is so, it has to be further specified in writing in the trade agreement/deal.

Gabriel Ferrero
France
Local time: 11:00
Specializes in field
Native speaker of: Native in EnglishEnglish

Peer comments on this answer (and responses from the answerer)
disagree  Daryo: when you find the whole ST, you find also that IN THIS CASE it's not that meaning of "credit"
10 hrs
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26 mins   confidence: Answerer confidence 4/5Answerer confidence 4/5 peer agreement (net): -1
receive a discount


Explanation:
I'm pretty sure that's the meaning, though the English is weird.

philgoddard
United States
Native speaker of: Native in EnglishEnglish
PRO pts in category: 8

Peer comments on this answer (and responses from the answerer)
disagree  Daryo: "discounts" are elsewhere in the contract (that can be found online in 10 secs ...) IOW this "credit" is not a "discount" // this is a multinational - I'm sure they can afford lawyers capable of using **the right legal terms** ...(=> nothing "weird" ...)
10 hrs
  -> A discount is a price reduction. Why don't you stop lecturing us inaccurately about our native language and stick to your own?
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43 mins   confidence: Answerer confidence 4/5Answerer confidence 4/5
The buyer will benefit from a discount


Explanation:
The buyer will benefit from a discount

ِAdel Almergawy
Egypt
Specializes in field
Native speaker of: Native in ArabicArabic

Peer comments on this answer (and responses from the answerer)
disagree  Daryo: a "discount" is given for paying cash in one go, not the case here.
10 hrs

agree  philgoddard: A discount is a price reduction. Why don't you stop lecturing us inaccurately about our native language and stick to your own?
1 day 1 hr
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3 hrs   confidence: Answerer confidence 5/5 peer agreement (net): -1
treat the payment as duly made


Explanation:
The source text appears to be taken from Clause 2 of the Seller Terms and Conditions of SAGE Automotive Interiors.

http://www.sageautomotiveinteriors.co.uk/terms/seller-terms....

When read in context, the source text means:

Where the Buyer makes a payment before the due date for that payment, the Seller may permit that accelerated payment, i.e. Buyer may, if the Seller so permits, treat that payment as duly made, as at the actual payment date and in accordance with the Citibank prime rate on the invoice date.

I agree with Phil that this text is not going to win any plain English drafting awards.

There is no discount here, merely an advance payment for goods. Indeed Clause 2 of the T&Cs expressly excludes any discount.

"All payments shall be due and payable without offset, discount (unless explicitly provided for in the Contract) or any reduction in the Contract price, without deduction for any exchange or conversion, and also without deduction for any taxes or duties levied by any governmental authority. "



MARK ROBERTSON
Local time: 10:00
Specializes in field
Native speaker of: Native in EnglishEnglish
PRO pts in category: 24

Peer comments on this answer (and responses from the answerer)
disagree  Daryo: yes, but one (key) bit is missing: if it was ONLY about "paying few days/weeks in advance" why would there be immediately after any mention of "the prime rate of Citibank" - which sounds a lot like a kind of interest rate?
6 hrs
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10 hrs   confidence: Answerer confidence 4/5Answerer confidence 4/5 peer agreement (net): +1
Buyer may take a credit against such ["anticipated"] payment
Seller may credit Buyer's client account with interest given for making payment in advance


Explanation:
"Buyer may take a credit" is simply the mirror of the usual way of formulating exactly the same thing: "Seller may give/add credit to the Buyer's client account"

The "credit" to be added to the Buyer's client account with the Seller is the interest for effectively "lending" that money to the Seller" from the date of "anticipated" payment to the date when it should have been paid - thus the mention of "the prime rate of Citibank [for lending money], in effect on the date of invoice." as the interest rate to be applied to calculate the amount of this "credit" that is to be added to the Buyer's client account.

he whole of
In the event Buyer makes a payment in advance of the due date therefore, Seller may permit anticipation; that is, Buyer may take a credit against such payment, based upon the date of such payment and the prime rate of Citibank, in effect on the date of invoice.

is part of the "Seller Terms & Conditions" of SAGE Automotive Interiors.
http://www.sageautomotiveinteriors.co.uk/terms/seller-terms....

but the part ""Seller may permit anticipation" is taken from a standard clause found only in the (USA)

CODE OF FAIR COMPETITION FOR THE LEATHER INDUSTRY
....
II. To substitute the following for Article XIV of the Code of Fair Competition for the Leather Industry:

“A. All invoices covering domestic sales in the leather industry including sales of labor or contract work, shall, except as noted below under paragraph C, be due and payable in thirty (30) days; thereafter shall be payable net, with interest at the legal rate, not to cxceed six per cent (6%) per annum.

“B. Discount shall be for payment in cash only and shall not exceed two per cent (2%). No seller may anticipate discount by invoicing at an equivalent net price any class of leather which he customarily sells subject to discount. No datings shall be given.

“C. The following exceptions may be made at seller's option:
--- “1. Buyer may be granted privilege of payment on or before the 10th of the following month for all invoices dated from the 1st to the 15th inclusive, and on or before the 25th of the following month for all invoices dated from the 16th to the last day of the month. This privilege may be granted only on a permanent basis; it shall not be extended from time to time as may be to advantage of buyer.
--- “2.*** Seller may permit anticipation at not to exceed six per cent (6%) per annum on bills paid prior to due or discount date. ***

Where privilege of payment on or before the 10th or the 25th is granted, for purposes of anticipation all invoices of the 1st to the 15th, inclusive, shall be considered as dated the 10th of the month of charge, and all invoices from the 16th to the last day of the month shall be considered as dated the 25th of the month of charge.

“3. Seller may grant three ....
https://books.google.co.uk/books?pg=PR9-IA40&lpg=PR9-IA40&dq...

more
https://www.google.com/search?q="Seller may permit anticipat...


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Note added at 11 hrs (2020-06-29 02:11:28 GMT)
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another detail: this is not an "advanced payment for goods" which would be paying before receiving the goods. This "anticipated" payment still a payment after receiving the goods, only not after so long as initially agreed.

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Note added at 1 day 8 hrs (2020-06-29 23:01:03 GMT)
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The Seller is getting its money before it's due, and between the "anticipated payment date" and the "due date" the Seller has this money available that wouldn't be otherwise available, so it's the Seller who is "paying interest" to the Buyer.

Only the payment is in form of "credit" i.e. less to pay on the next invoice.

Daryo
United Kingdom
Local time: 10:00
Specializes in field
Native speaker of: Native in SerbianSerbian, Native in FrenchFrench
PRO pts in category: 12
Notes to answerer
Asker: Thank you for your answer. So, if I understood correctly, Buyer may take a credit against such payment means that Buyer may pay interest for this payment because it is anticipated.


Peer comments on this answer (and responses from the answerer)
agree  bonafide1313
5 hrs
  -> Hvala!

agree  Luis M. Sosa: Strongly agree. Well researched and explained. Financially, giving a discount to the buyer may have similar effect to paying interest, but we need to interpret and follow what is implied in the source text.
13 hrs
  -> Exactly - it's all "money less to pay" but the label attached to it DOES matter. Thanks!

disagree  philgoddard: This is gross overtranslation. It's a specific percentage discount, and it doesn't say anything about "crediting the buyer's client account". Because you're not a native speaker, you've misunderstood "discount".
15 hrs
  -> suggestion for a search "Patriotism is the last refuge of ..."/ You are nowhere near "native" in the "language of money" more than obviously, as your own favourite refrain for specialised questions is "I don't understand, but I'll still answer ..."
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