Our Credit Policy


1. Overview

Magnolia Technology Solutions is committed to ensuring timely and efficient management of outstanding payments from invoices issued to clients. This policy outlines the process for tracking, following up, and escalating unpaid invoices to maintain smooth business operations and effective service delivery while protecting our cash flow.

2. Payment Milestones & Due Dates

Invoices will be issued based on agreed milestone payments as stipulated in the client contract. Payment is expected to be made within the stipulated period upon invoice issuance. If payment is not received within the agreed timeframe, the following process will apply:

3. Follow-up & Escalation Process

  • 0-15 Days Overdue: The internal accounting/finance team will initiate a structured follow-up, supported by the business development executive and/or project consultant.
  • 16-30 Days Overdue: If the payment remains outstanding, our credit control team will take over, implementing necessary measures to secure payment.
  • Beyond 30 Days: Service suspension will be initiated, and if the payment remains unresolved, additional measures may be taken, including further negotiations or legal recourse, while maintaining our commitment to a positive client relationship and continued business engagement.

4. Commitment to Efficient Project Delivery

At Magnolia Technology Solutions, we aim to maintain efficient project delivery for all our partners. As part of our commitment, we ensure that our services are delivered as per agreement and that all deliverables are properly documented at the time of sending the invoice. This ensures transparency and alignment with the client’s expectations.

5. Early Payment Incentives

  • Clients who make payments before the due date may qualify for a 2.5% discount per milestone payment (except for the kick-off milestone).
  • Long-term clients with a strong payment history may receive loyalty incentives.

6. Late Payment Consequences

  • Persistent delays in payments may result in service suspension.
  • A late payment charge of 2% per month (compounded) will be applied to any outstanding invoice.
  • Future engagements may require upfront payments or stricter credit terms.

7. Client Credit Assessment

  • New clients may undergo a credit risk assessment before initiating large projects.
  • Payment terms may be adjusted based on client risk level.

8. Automated Payment Reminders & Collection Tools

  • Automated email/SMS reminders will be sent for upcoming and overdue invoices.
  • Payment tracking software will be used for real-time visibility on outstanding invoices.

Magnolia Technology Solutions aims to comply with all relevant local financial regulations, ensuring adherence to best practices in credit management and invoicing. This policy is designed to ensure that all parties adhere to agreed financial obligations, fostering long-term and sustainable business relationships.