Dear Members, we would like to get your feed back from each and everyone of you regarding possibly introducing an Early warning payment – Red Alert System.
The idea behind this is to ensure all ASA members pay each other in an agreed time frame (this agreement made between each member regarding these transactions) this can be 30-45-60 -90 days per your agreement with the other party. Then if the payment agreement is not kept too you should notify ASA Management.
We want to discuss this subject due to freight rates in the past year sky rocketing.
For example a single 1,000 + Kgs airfreight shipment from Asia to Europe or South America can be around USD 10k, or a couple of Sea freight boxes can again be 10K + which is about 4-5 times more than it was in 2019/20. So its very easy to see credit facilities jumping up massively in a single month.
Right now we have a very good record of payments among our ASA members so we are not wanting to suggest otherwise, its just a discussion as do we want to keep a closer notes as a group re possible delayed payments.
If you do want to adopt this Red Alert System you must realise it will only work if you always report to ASA Management any payment delays beyond agreed payment terms, so we can get a complete picture and then circulate this info to all ASA members, probably on a monthly basis.
The downside of this Red Alert System is if once an ASA member is reported as a slow payer it could effect future business opportunities with other ASA members as all members will see they have been high lighted as a slow payer, even if payment is delayed by just one week without the the agreement of the other member.
If the general consensus is we should adopt some kind of Red Alert System then we will have to set the ground rules regarding what is not an acceptable delay beyond the agreed credit terms, also a system to take off a listed member once payment received, but maybe if regular reports of slow payments they stay on the list etc.etc.
We would welcome your comments and suggestions on the above please ensure you all reply one way or the other.
Many thanks for your help
Robert & Roy