As the world’s largest exclusive freight forwarders network, Conqueror Freight Network takes several steps to ensure that all the members are untouched by bad debts from other members. Not only do we have strict membership requirements to enlist only the most financially solvent, reputable and creditworthy agents as our members, we even monitor the member’s performance to quickly identify any problematic indication like late payment of an invoice issued by another member.
The Rule 9.8 of our Rules and Procedures clearly state that: “A member who receives no notification of payment from another member by the 16th day of the month following the invoice period will notify the Conqueror Freight Network of the incident. The wrongdoer will be contacted and granted an extra five calendar days to make payment.” Additionally, failure to pay the debt within the five days of extension will mark the member as Blocked. If this blocked member who doesn’t pay the debt within another 10 days, their membership will be revoked.
However, as one of the best freight forwarders network on the planet, Conqueror also has a Payment Protection Plan that facilitates the process of due collection in the unlikely event of a bankrupt agent. Keep reading today’s post to get an idea about Conqueror Freight Network’s Payment Protection Plan and how it enhances the financial security of the agents.
The Payment Protection Plan
How it works
Conqueror’s first line of defence is its rigorous selection process and the auditing by DUN & BRADSTREET. Therefore, only those agents who have proven productivity and solvency are admitted as members. The PPP is an additional guarantee for those members who want to stay 100% safe. For more information, visit our PPP section.
Members can avail of the Payment Protection Plan by a payment of 500 EUR per year. This plan is going to keep your covered even when you owe money from a member who has become bankrupt or has gone out of business. In the first quarter of every year, Conqueror can disburse up to 80% of the monies in the PPP fund for recompensing each member (who have opted for this service) with the maximum amount of $25,000. However, this amount might not surpass the credit limit posted for the bankrupt member.
The procedure of compensation
When Conqueror terminates the membership of a debtor, it sends a notification of the termination by email along with a deadline date for making any claim against the PPP. Conqueror does not consider any claim received after the aforementioned deadline. Therefore, agents who apply for compensation must satisfy the following conditions:
– The unpaid invoice relates to services in connection with international shipments
– The invoice was correctly issued in conformity with the Rules and Procedures of Conqueror Freight Network
– Three reminders were sent to the debtor at reasonable intervals. The latest reminder needs to be sent within 90 days of the date of the invoice informing the defaulter that a report would be filed with Conqueror Freight Network.
The PPP hires the services of a trustworthy debt collection agency to collect the dues in a legal way. Moreover the PPP fund is kept totally separate from that of Conqueror Freight Network so that it can be scrutinized by all the members who have opted for this plan.
It is an optional service
It is an optional service offered for additional payment security. If a member chooses not to join the PPP and they have an unpaid invoice, they are expected to absorb the costs themselves. However, if the member has joined the PPP, funds will be released to protect the member in the event of any bad payments.
Nevertheless, the PPP doesn’t cover disputed invoices which are provided for under Rule 9 (Payments) and Rule 10 (Dispute Resolution Service) specified in Rules and Procedures of the Conqueror website.
To find out more about our Payment Protection Plan, just send us an email and we will get back in touch with you.