ACCOR jpdeted: May 2010 | HOTEL ACCOUNTING & OPERATION MANUAL | Index N°: POLICIES & PROCEDURES FIN-03-02 CREDIT / ACCOUNTS RECEIVABLE Subject: Credit Policy Page: 1 of 11 OBJECTIVE To define a proper evaluation and approval process for new customer accounts or credit limit increases for existing debtor accounts in order to reduce future potential collection problems. POLicy 1. Credit should only be extended to customers who have been subject to a pre-arranged thorough review of their credit status. 2. The credit application must be formalized, stating maximum credit permitted, payment terms and methods, people authorized to make bookings on behalf of the debtors etc. All credit applications should be renewed annually for solvency checks. 3. An upto-date authorized debtors listing must be maintained, stating the credit limit and terms available to each debtor and communicated to all relevant staff. 4. The Credit Manager is responsible for the review of the application and investigation of the applicant's credit history. All credit applications must be approved by the Financial Controller and the General Manager. In the case of an Accounting Hub, credit applications are approved by the Senior Financial Controller. PROCEDURE | Credit Application procedure 1. A company wishing to open a credit facility with the hotel must complete 2 hotel crecit application form (sent bythe Sales & Marketing deartmen}) stating: ‘Company details (Name, address, corporate name, etc) - _ List of persons authorized to make bookings on behalf of the company (Name, position, ID number, specimen of signature) - Credit references ~ Invoicing details (Billing address, contact person, el¢) 2. Once received, the Credit Manager must review the application for completeness and accuracy. Missing or erroneous information may result in delays or rejection of the application. Then the Credit Manager will perform a formal check of the solvency of the ‘company, through: - The use of independent orecit investigation agencies (such as D&B) or investigative services on internet - The investigation of the credit references given by the applicants ~The enquiries made to other hotels in the Accor group Detailed results of the enquiries must be attached to the credit application. Page 5.of 48ACCOR Updated: May 2010 | HOTEL ACCOUNTING & OPERATION MANUAL | Index N®: POLICIES & PROCEDURES FIN-03-02 CREDIT / ACCOUNTS RECEIVABLE ‘Subject: Credit Policy Page: 2 of 11 | For a company with a past relationship with the hotel, any information with regard to their prior history (such as retumed cheques, non-compliance with payment terms, settlement disputes, etc) must be included. 3. The Credit Manager will review the credit application and the results of the credit investigation to propose the approval or rejection of the crecit facility. 4, The credit application file will then be submitted to the Financial Controller and the General Manager for their final approval before execution. If approved, the credit line and terms authorized must be in accordance with the hote!'s credit policies. 5. After completion of the process, the Credit Manager will send an official letter to the applicant to inform him of the result of the application and outlining the conditions of the credit granted, including the credit limit and payment terms. A provision should also be included to advise that credit will be cancelled if the terms of the credit are not respected. 6. The approved credit application should then be filed in alphabetical order in the credit department. 7. In the case of government accounts, there is no need for a credit application to be ‘completed. The Credit Manager must however verify that it is a bona fide government department. Government bodies that are not 100% owned by the government are stil required to complete the credit application. 8. In countries where there is a National Credit Manager, national credit may have been granted to clients. In this case hotels are not required to have a hotel specific credit application completed. They must however verify that the client is on the current national credit listing. Credit application maintenance 1. A credit file for each debtor account, containing the authorized credit application with all supporting solvency check documents attached, is maintained by the credit department. ‘A summary list of all companies with authorized credit should be maintained for easy reference, listed by sub-category and stating: - AIR code - Company name = Date of approval of the credit application - Credit limit and terms granted = _Invoicing terms This summary should be distributed to all relevant department heads. 2. The credit worthiness of the debtor must be reviewed annually, ensuring there is no change in the company status and that the persons authorized to make bookings on behalf of the company are still valid, Page 6 of 48ACCOR 7 Updated: May 2010 | HOTEL ACCOUNTING & OPERATION MANUAL | index N°: ! POLICIES & PROCEDURES FIN-03-02 4 CREDIT / ACCOUNTS RECEIVABLE 7 ‘Subject: Credit Policy Page: 3 of 11 - In Asia, a new credit application is sent to the client and the former credit application is = then replaced if received. Otherwise a note must be made on the debtor file with regard to the status of the client. - Inthe Pacific, the status of the client must be noted on the debtor file. 3. Credit limits must be reviewed regularly by the hotel management. Any company over the credit limit should be discussed in the credit meeting. There are two main reasons why a ‘company is over its credit limit: - The volume of business generated by the company over the period is more than the credit limit, In that case, the credit limit should be incteased accordingly. - The company is experiencing difficulty with payment. In that case, the option of removing credit authorization temporarily or permanently must be discussed. A floating deposit system should be considered 4. Any changes in the credit limit must be formalized with a new credit authorization form being approved by the Financial Controller and the General Manager and subsequently attached with the original credit application. 5. The Financial Controller is responsible for performing regular checks to ensure the filing is properly and accurately maintained. Il- Form samples - Credit application form - Asia - Credit application form - Pacific ~ Credit reference check — form - Letter of offer — credit facility ~ Example of credit denial letter Page 7 of 484 ACCOR Updated: May 2010 | HOTEL ACCOUNTING & OPERATION MANUAL | Index N°: POLICIES & PROCEDURES FIN-03-02 CREDIT/ ACCOUNTS RECEIVABLE Subject: Credit Policy Page: 4 of 14 CREDIT APPLICATION FORM - ASIA NOTE: It is important that this form is completed in full Insufficient information may result in unnecessary delay in ‘processing your application. All torms and conditions over leaf are deomed to ba parts) of this application and hhave been read, understood and accepted by you in fotal at time of your application for credit facities atthe hotel Name of Company or Firm: Nature of Business: Address: Phone Number: ‘Type of Company ; PRIVATE / PUBLIC LTD [ SOLE PROPRIETOR / PARTNERSHIP (Delete where not applicable) ‘Authorized Capital : id-Up Capital: No. of Employees: PARTICULARS OF PERSONS AUTHORIZED TO MAKE HOTEL ARRANGEMENTS, ISSUE INSTRUCTIONS AND SIGN ON BEHALF OF COMPANY. Ware in Position Hold 1D Card or Passport Signature BLOCK CAPITAL, Numbor NOTE: Please notify the ote if there are chenges or amendments to the above authorized signatories. If writen notification is nat received, the above signatories wil stil be valid and the company is stil fable or all changes Incurred thereafter, ‘Company's Bankers > ‘Recount Nor (Pease State Branch) Bank Address Registrar of Company (ROC) No: DO YOU OR YOUR COMPANY PRESENTLY HAVE OR PREVIOUSLY HAD AN ACCOUNT WITH OTHER HOTELS IN. THE ACCOR GROUP (If YES, please fumish the folowing particulars) Name of Hotel ‘areas: 7 z 3 ‘Tho undersigned (an authorized signature) hereby requests that a corporate account be opened at THE HOTEL. In connection with the above particulars, the undersigned authorizes the recelpt and exchange of credit Information. The company will be liable for all charges incurred at THE HOTEL, by the company's guests unless otherwise instructed in writing. The company will be bound by the terms anid conditions contained over loaf upon approval of the application for credit facilites at THE HOTEL. Page 8 of 43ACCOR Updated: May 2010 | HOTEL ACCOUNTING & OPERATION MANUAL | Index N' POLICIES & PROCEDURES FIN-03-02 CREDIT / ACCOUNTS RECEIVABLE ‘Subject: Credit Policy Page: 5 of 11 REDIT FACILITIES - TEE mt 1) Thase terms and conditions are deemed to be part(s) of the application for cred facies at THE HOTEL (Insert hhote! name). 2). Granting of crecit facilities shall be atthe sole discretion of THE HOTEL. 8) All charges incurred by the company shall be billed to its business address and settlement of outstanding shall be payable within the credit term (insert credit term) upon presentation ofthe bil. 44) The amount of each bill should be paid exciucing of any bank charges ard in the currency of the bil. 5) The company must inform THE HOTEL if there are any changes / amendments tothe authorized signatories or any other related matters. Prior to the receipt of written notifeation the company wil sil be lable for any charges incurred thereefer 6). This crecit faciity isnot transferable to other companies, sister companies or associates companies ofthe approved company. 7). For all ctedit balances which are not cloared vithin the credit torm after receiving the bil, 2 (two) percent interest per month willbe applied and reservation will be treated on cash basis. 8) The hotel reserves the right to withdraw, suspend or Increase the credit fecities at any ime. Such notation shall be made in writing to the company informing them of the hotels deciion without having to assign any reason whatsoever, 9) The company undertakes to reimburse and to indernify the hotel for al Jooses expenses and damages that have resulted directly orindrecly from the negligence andlor malicious actions ofthe company andior his guest. 410) This prosent form is valid until DATE (Insert date). 11) In order for this credit faclly to be valid, please retum this completed application by facsimile or email, and we shall reply to your application as soon as possible. “SIGNATURE & COMPANY STAMP * Please attach a copy of your passport or identity card for vertication. Wame : Designation: CONTACT PERSON RESPONSIBLE FOR THE PAYMENT Name? Position: Ta Fax: E-mail Address = Signature? ag Rares OPERATION MANAGER / handling agent Name Position? Tal? Fax Exmal Address? ‘Signature: ailing Address? Page 9 of 48ACCOR 4 Undated: May 2010 | HOTEL ACCOUNTING & OPERATION MANUAL | Index N°: POLICIES & PROCEDURES FIN-03-02 CREDIT / ACCOUNTS RECEIVABLE ben i Subject: Credit Policy Page: 6 of 11 (CREDIT AUTHORISATION APPROVAL FORM o Name of Company or Firm: Flocommanded by: (Name & signature) Position: Romarks (any): Verified by: (Name & signature) Position: Gredit Manager Credit Limit Granted: Director of Sales : ‘Approved /Disapproved Financial Controllor ‘Approved /Disapproved ‘General Manager: ‘Approved / Disapproved Page 10 0f 48ACTOR Updated: May 2010 | HOTEL ACCOUNTING & OPERATION MANUAL | Index N°: POLICIES & PROCEDURES: FIN-03-02 CREDIT / ACCOUNTS RECEIVABLE Subject: Credit Policy Page: 7 of 11 CREDIT APPLICATION FORM ~ PACIFIC (INSERT YOUR BRAND LOGO) HOTEL CREDIT APPLICATION FORM- AUSTRALIA aos ‘oly Aastalia Phone: & fax AAP Linited (Company Number) “The information on this epplication form wil be treated in the strictest confidence, IMPORTANT All quastions must ba answered. (Please orint clearly). Please send this application directly to the Accor Hotel that you wish to apply for credtt at. Registered Name: ‘Trading Name... Registored Office (f company): Phi Applying for credit at which Accor Hote’s: List (8) hotels that you have established cred facilties Ph. et Phiisiest Ph: Postal Address with 1) see Principal Place of Business: eee ceeceseccr cea (Eee Phone No: . 3. FexNo: : List (8) Trade references (Name & Phone No.) ACN. or AB.Number a Business Activity. ‘Type of Business: Sole Trader! Perinershio/ Company i Contact Namo for Account Enquirios: Contact Phone for Account EnqUiieSisiinnnennnnnne | How many years trading: Website Address : : Name of Actor Sao contac: (CREDIT LIMITED REQUIRED s. PER MONTH Page two of this form must be completed Inia Page 11 of 48ACTOR Updated: May 2010 | HOTEL ACCOUNTING & OPERATION MANUAL | Index POLICIES & PROCEDURES FIN-03-02 CREDIT / ACCOUNTS RECEIVABLE Subject: Credit Policy Page: 6 of 11 ‘The Proposal We the proposer(s) hereby agree thatthe folowing terms and concitions under which this eri proposal, if granted wil ‘operate. ‘The Hotel, is herein named "The Company’ 41. Sottloment wl be due and payable win 14 days o the proposer(s) dae of nvoice(s) 2. The proposer(s) agree(s) to confirm in writing, of by telwtax the charges for which responsbilly wil be aocoptod in respect of eacn reservation made. Further, the proposer(s) will advise the company of any change of detais, submited a5 soon as they become krovm. 3. The company vil rely onthe representations and statements by the proposes) inthis propos 4. Itis expressly agreed that inthe event tna Just debis owing tothe company by the proposer(s) beccme 60 days overdue from the date of invoice, then interest ata rato of 15% per month vl be payable on such overdue, rom the date of reeching 60 days overdue 5. Tho company has tho right, without notice to terminate any oral cri facies to th proposer), atthe company’s steolute discretion, and all just debis, (ple interest if applicable asin point 4 above}, owing by the propasers) to the company wl hon become due end payable immesiaoly on demand. 6. The company has the right to set mits on the amount ofthe cre facity made available, and to vary these lini at any time, at the company’s absolte ciscrtion. 7. The proposer) wil indemnity the company for the costs, being elfter lagal casts andlor collection costs or cammissions of recovering just dob owing by the proposer) to th company. 8. The proposer(s) give consent forthe company to perorm credit checks wi third partes (i.e. Dun & Brodstroet, {and to perorm tao reference checks, in order to ostabich xelt worhinoes. ®8. The company reserves the right lo request an advance security ceposi the proposer(s) book conferences or book large group accommodation, 10. The company reserves the right io impose a sucherye i the proposer(s) decide to pay invoices by ced card ‘Tho information provided In this application is tothe best of my knowiedge, and belle, true and correct. | warrant that have read the terms and conditions ofthis proposal and have the authonty to sign. Signed for and on behalf Of ..nsse-e Tie: Name... Baten ‘Signature: _(Drector, General Manager, Parner or Company Accountant only) FOR OFFICE USE ONLY: Issued by Trade References Checked and veriiad by. Credit Lim. sen Ort Rating: iit ‘Avorove by Poston . Date: ‘Approved by: Postion Des Credit atid unt: svonDato oF rovow: Poge 12 of 48,1] ACCOR Undated: May 2010 | HOTEL ACCOUNTING & OPERATION MANUAL | Index N POLICIES & PROCEDURES FIN-03-02 CREDIT / ACCOUNTS RECEIVABLE Subject: Credit Policy Page: 9 of 11 Credit Reference check form CREDIT eral Ua ny Jrrucanrreanin nae |crsoresrasusten snc oars fave rena oar: RAE MONTHLY EXPENDITURE Pave WITHA DAE foneor estasisten ance are AeA MONTY ESPENOTURE fare rnsioars: snr roreneices coups STARLSHED SCS DATE: fart Ts BAYS: AveB4G MONTHLY PENOURE PATS ITN DAYS fescommencar- ro poPRovE om CHER PARED NAM A POSTION: Page 19 of 48ACCOR Updated: May 2010 | HOTEL ACCOUNTING & OPERATION MANUAL | Index N°: POLICIES & PROCEDURES. FIN-03-02 7 CREDIT / ACCOUNTS RECEIVABLE [ ‘Subject: Credit Policy Page: 10 of 11 of Offer - Credit Facil {on hotel leterheas Date Company Name Address Dear. Re: Credit Application With reference to your credit application dated . we are pleased to inform you that your application for a credit facility of insert amount?) with us has been approved with a credit term of, days (insert number of days) and in addition to the conditions specified in the application form. 1. All bookings require a written authorization (letterhead fax, letter or emall), or voucher, to be sent, stating clearly what charges are to be charged back to your company for payment. 2. All. charges incurred by the company shall be billed to its business address. Settlement of outstanding invoices shall be payable within the credit term from the date of the invoice, or immediately if the balance of the account rendered has reached its credit limit, 3. The hotel reserves the right to withdraw or suspend the credit facility at any time without notice if the terms of the credit application are not respected, We prefer payment by bank transfer, with the hotel bank details as follows: Bank Name Bank Address ‘SWIFT Code : Account Name Account N° ‘Should you have any query, please do not hesitate to contact us, Yours faithfully, Financial Controller General Manager Co, DOR! DSM/ Credit Manager Page 14 of 48