Credit

All transactions completed on ChemConnect’s Chalkboard trading application are subject to credit settings set by each individual company within each market they trade. Your company will assign a Company Administrator who is responsible for setting and changing the credit of corresponding trading partners.

Each company has the option of setting credit for physical and financial deals as well as the length (term) of the deal completed. The company administrator is only allowed to change credit settings before 8:00 AM CST or after 5:00 PM CST. If a company needs to change credit during trading hours, you must contact your Chalkboard Customer Service Representative to do so. However, you can view your credit settings at anytime.

New companies that register with ChemConnect’s Chalkboard will have their company name automatically appear in the Credit Settings window within the ‘New Companies’ selection. In addition, each new company is announced in the ChemConnect News when you login to the Chalkboard application.

We suggest you review the credit setting trading partner list often and immediately to establish trading restrictions with companies, especially new companies that have joined the trading application. Trading cannot occur until each company has been enabled by your Company Administrator, as the default credit setting for all companies is NO.

Define credit terms

The credit settings you have to choose from on ChemConnect’s Chalkboard system are divided into three major sections: Physical deals, Financial deals, and Term (Months) of the deal. In each of the Physical and Financial deal sections, it is further split into Sell To and Buy From sections as well.

Physical Deal or Financial Deal and Sell To or Buy From Definitions:

NO: Denotes that your company will not do business with the company listed.

APPROVAL: Denotes that your company will do business with the company listed. All open credit settings are subject to existing credit limits and final approval by seller’s credit department.

LETTER OF CREDIT: Denotes that your company will not conduct business with the company listed without that company posting a letter of credit. The physical letter of credit is part of the behind the scenes paperwork that you and your trading partner need to tend to outside of Chalkboard.

If you require a letter of credit from a trading partner (or they from you), you must click on the appropriate radio buttons on the Negotiation window before you can complete or negotiate a position. If the buyer clicks Yes, then the deal is completed. If the buyer clicks No, then the deal is automatically cancelled.

PRE-PAYMENT (PP): Denotes that your company will not conduct business with the company listed without that company pre-paying. The pre-payment is part of the behind the scenes paperwork and funds transfer that you and your trading partner need to tend to outside of Chalkboard.

LETTER OF CREDIT (LC): Denotes that your company will not conduct business with the company listed without that company posting a letter of credit. The physical letter of credit is part of the behind the scenes paperwork that you and your trading partner need to tend to outside of Chalkboard.

NO: Denotes that your company will not do business with the company listed.

Term (Months) Definitions:

NO LIMIT: Denotes that your company is willing to trade any number of forward months with the company listed.

CURRENT ONLY: Denotes that your company is willing to trade only within the current month with the company listed.

1-60 MONTHS: Denotes that your company has set a specific number of forward months that you are willing to trade with the company.

Set Trading Partner Credit Terms

What

How

Set credit terms for physical deals

Click on the Settings menu option
The window automatically defaults to the Credit Settings window
Choose the Commodity Market you wish to set credit from the drop down list
Choose the Companies you wish to view from the drop down list of All Companies, New Companies or My Trading Partners (those companies already set to trade with your company)
Click in the Physical Sell To column and set the correct credit setting for each trading company listed
Click in the Physical Buy From column and set the correct credit setting for each trading company listed
Click on the Save or Cancel button
Click on the Close button to return to the Market window

Set credit terms for financial deals

Click on the Settings menu option
The window automatically defaults to the Credit Settings window
Choose the Commodity Market you wish to set credit from the drop down list
Choose the Companies you wish to view from the drop down list of All Companies, New Companies or My Trading Partners (those companies already set to trade with your company)
Click in the Financial Sell To column and set the correct credit setting for each trading company listed
Click in the Financial Buy From column and set the correct credit setting for each trading company listed
Click on the Save or Cancel button
Click on the Close button to return to the Market window

Set term limit for any deals

Click on the Settings menu option
The window automatically defaults to the Credit Settings window
Choose the Commodity Market you wish to set credit from the drop down list
Choose the Companies you wish to view from the drop down list of All Companies, New Companies or My Trading Partners (those companies already set to trade with your company)
Click in the Term (Months) column and set the credit terms for each trading company listed
Click on the Save or Cancel button
Click on the Close button to return to the Market window

Please Note: Only the Company Administrator has the ability to change the credit settings for your company.