Document background
A Trade Credit Agreement is essential for businesses operating in Belgium that wish to establish formal credit arrangements with their trading partners. This document is typically used when a supplier provides goods or services to a business customer on credit terms, rather than requiring immediate payment. The agreement, governed by Belgian law, sets out the credit limit, payment terms, security requirements, and consequences of default. It ensures compliance with Belgian commercial law, including the Belgian Code of Economic Law and relevant EU regulations such as the Late Payment Directive. The document is particularly important for managing credit risk, establishing clear payment obligations, and providing legal certainty in business-to-business transactions. It includes specific provisions required under Belgian law regarding payment terms, interest calculations, and security interests, while also addressing modern business requirements such as GDPR compliance and electronic trading provisions.
