Davidson's Credit Terms

We are excited that you are interested in an account with Davidson's Inc. The following are some guidelines which should help you understand our credit terms and qualifications. Davidson’s is very conservative with credit, so you should typically expect lower limits than you may receive at other distributors.

 

If no credit application is received, our default payment method for orders is COD/Certified. This means as soon as the FFL, reseller’s agreement, and other necessary documents are in place, orders can ship with a certified check, cashier’s check, or money order collected on delivery. There is a COD fee per shipment to have UPS collect the funds and forward to Davidson’s.

 

What terms are available?

 

A credit application and approval is required for any terms listed below:

 

COD/Company check – Payment for orders is collected upon delivery, and a company check is acceptable, subject to the approved credit limit. This type of delivery also has a COD fee.

 

CHAX / Check by Fax – CHAX orders are pre-paid with a company check sent on our authorization form by fax or email. Your check is physically re-created using our software and deposited as normal. The check authorization must be signed and received prior to the daily shipping deadline for the specified method of delivery for the order to be released and ship the same day. Many find this to be a preferable method as it saves the COD fee.

 

ACH – (Automated Clearing House) – Orders with ACH terms are pre-paid. An ACH form and a credit application are required to be filled out and submitted. Upon approval, the ACH account will be saved on file. This account will be charged at the time of shipment for orders being sent.

 

Open Net 30 – This is our standard open account for qualified customers. Invoices are received on the outside of shipment boxes, and the 30 day term begins from the date of the invoice. For a payment to be considered on time, it must be received in our office by the 30th day. Payments can be made by mail, fax-check, or ach. We do not accept credit card payments.

 

How do I qualify?

 

Upon receipt of a signed credit application Davidson’s begins a credit review which takes about 5 business days. We attempt to obtain credit information from the following:

 

Firearms industry references – We contact other industry distributors as well as outside references. We request information such as terms, limits, highest balance, and average days to pay. We are looking for on time payments and a solid account history. We belong to an industry organization whose members report the current status of their various accounts. Past due payments with other distributors could prevent you from getting terms with Davidson’s.

 

Experian – Davidson’s has an account with Experian credit reporting bureau and we obtain a personal credit report for each individual who signs as guarantor and provides a social security number.

Davidson’s Payment History – Building a good history with Davidson’s is an important part of building credit with us. Even on COD, consistent orders, proper payments, no refused shipments, and no returned checks are positive factors in qualifying for more credit.

 

Davidson’s credit / shipping practices

 

At Davidson’s we closely monitor our extended credit and our receivables. Our system will put a “Hold” on any order for an account that is past due or over credit limit. All held orders are reviewed, and must meet certain conditions to be released.

 

Below are some examples of situations where we may hold or release an order:

 

Accounts with Past Due Invoices

 

• If our customer has an amount that is past due we require a chax or ACH payment for at least the past due amount, or check promise that will be received within 24 hours. We may release the order if the account is generally in good standing, depending on the size of the past due, and subject to credit limits.
• If an amount is over 30 days past due, no orders will be released until payment is received.
  
  

Accounts Over Credit Limit

 

• If an order plus outstanding balance is over credit limit, we require a payment or check promise toward invoices to bring the balance down and allow room for the new order. We evaluate a number of factors including but not limited to: historical account performance, credit limit vs year to date sales, information contained in the credit file, and whether the order is a warranty replacement or instance where a consumer has placed a deposit for a firearm through GalleryofGuns.com.
• Release of an order over limit does not constitute a new credit limit, but may trigger a review if we feel a higher limit may be warranted.
  
  

Loss of Account Status or Reduction of Credit Limit

 

• Terms will be reduced if an account is not maintained in a satisfactory manner. For example, consistent or long term past due, returned checks, negative trends reported in the industry, or unauthorized returns will all cause a re-evaluation of the account. (Returned product which is NOT for warranty repair or replacement is subject to reship charges and/or a 15% restocking fee).
• Terms will be reduced on accounts that have no sales in over 1 year. For security and verification, the accounts are changed to “TR” or “Terms Review” status. This indicates that a review of credit status is needed to resume shipping under previous terms.