During out last Meeting in Agadir, Morocco we announced the creation of the ALN Guarantee Fund in order to protect as much as possible the payments inside the Network.
Here we’ve listed the terms and conditions of the Fund, that we hope you will find clear and simple.
The most important thing to do at this moment is to get started. The terms and conditions can be later modified to better serve the members at the end of each year.
- Use of the fund is on a voluntary basis.
- Africa Logistics Network will manage the Guarantee Fund free of charge, at least for the first year. In the future as the fund grows, management costs will be evaluated.
- The cost of the fee will be €500 annually for each Member that uses the fund. After the 5th year the use of the Guarantee Fund will be free of charge, this will depend on the total amount available in the Fund. At end of the every year, each Member has the option to withdraw from the Fund. The member will be reimbursed for all of the Fund fees paid, minus a percentage for eventual claims paid. Should a Member have registered with the Network other Branch Offices, the fees for each Branch will be €250 per year.
- The fees paid to the Fund are and remain the property of each Member. The function of the Africa Logistics Network is only to manage these funds according to the needs of the Members and the rules of the Guarantee Fund. The Africa Logistics Network is in no way responsible or can be involved in any payment case or claim.
- How the Guarantee Fund works:
- The Guarantee Fund works only for credits claimed with other ALN Members subject to the Guarantee fund start date and of course each Member’s joining date.
- No Claims will be accepted under €1,000 or for more than €20,000.
- Funds shall only be used for unpaid invoices and bad debts, any debts resulting due to operational disputes and mistake are specifically excluded. For such events, each Member must have their own Forwarders Liability Insurance.
- Once the claim is approved, the Guarantee Fund will reimburse the requesting Member 40% of the claim amount, the reimbursement rate will be decreased if the payment request exceeds the principal amount of the Guarantee Fund. Over the following years, the reimbursement could be increased according to the decisions of the affiliated Members and the total amount available in the Fund.
- The amount of the reimbursement could also be reduced for shared responsibility of the Creditor. In the case that the Creditor Member can, by other ways, for ex. FDRS, be able to recuperate partially or totally the claim amount, must inform immediately the Management accordingly and must return to the Guarantee Fund the amount received, in the same percentage of the claim paid.
- The payment terms for the Network are normally due 30 days after the invoice date. Other arrangements between Members are accepted but should be due no longer than 90 days after the invoice date. The Guarantee Fund will not be held responsible for these debts. The Creditor has 15 days after the invoice due date to inform the Management of the unpaid invoice.
- In the case of reimbursements below €500, the amount will be added to the next Membership fee invoice to help reduce bank charges and fees.
The confirmation of the Fund affiliation is understood once the Acceptance Form is signed, sealed and returned. The network will issue an invoice for the amount due.
The Management shall receive the claims clearly documented with copies of the invoices and all mails and correspondences exchanged with the Debtor. The Management will take 30 days to review the situation and to try to recover the amounts due. The Management will select two Members (with at least two or more years of affiliation) in order to know also their point of view if necessary. After this review, the Management will inform the Member of the amount of the claim. The claim payments will be due at the end of the current year. (See point 5)
- The fees cover the current year so if a Member, for example, is affiliated in June, the fees remain unchanged and his participation will end on December 31st of that same year.
- At any time, all affiliated Members have the right to obtain information about the current situation of the Fund.
- At the end of the year, the President of the Africa Logistics Network will present a report underlining the total amount of the fees collected and the amount of claims to be paid. After the presentation of this report, the affiliated Members have two options:
- To leave the Fund: the ALN will reimburse the fees paid as follows, fully in the case of no claims, in a percentage if some claims were paid. No reimbursement will be issued if the claim total is higher than that of the Fund.
- Staying in the Fund: new fees paid the following year will help to increase the Fund and the percentage on the claims.
All fees paid to the Guarantee Fund are and remain of property of each Member and Africa Logistics Network’s services offered, are only to manage these funds, without any liability and without incurring any extra charges for its Members.
During the first year, very close attention will be paid to the Fund and it will be carefully managed to ensure the highest quality of service for its members and secure the best possible procedures for future success.
Africa Logistics Network Management