Dear ASA Members, recently ASA Management have spent a great deal of time helping members to recover overdue monies from Atlas Logistics Bangladesh, fortunately Atlas have been paying these very long overdue debts, all be it very slowly.
During this exercise of helping collect debts for our members, we were amazed to see that one member had advanced credit of over USD 20,000 in one month. Now I don’t know what due diligence they use in setting their credit limits but that’s awfully high to my mind for a first time transaction.
Now ASA do not want to be setting credit limits for its members
When setting credit limits you should continue to make your own credit checks, but we would suggest that you contact me on transactions of say freight costs of USD 10,000+ asking if we can give some background to the ASA member, such as number of years they have been a member, had we ever had previous complaints of delayed payments. In most cases I’m sure there will not be a credit issue as we did carry out due diligence and taking references on all members when they joined, and we do also update our bad debtors checks monthly.
Please note this is only a suggestion, you can choose to ignore this especially if you already have a good trading history with any ASA member.
Chairman of the ASA Committee