Payments between Members
Please note that UFO does not offer Payment Protection.
Introduction
We have spent considerable time carrying out research regarding payment protection. We started with insurance companies, but it would be unfeasible due to the complicated set up - every Member would have to provide comprehensive answers on numerous forms including listing all debtors and creditors and without complete details, the underwriter would be unable to provide a proposal.
Another option we investigated would be to arrange a ‘bond’ system. However, before we could collect funds/deposits from Members, we would need to be authorised and regulated by the Financial Services Authority (FSA), which would involve a capital requirement (of which the minimum capital requirement in the UK is £5 million as defined in the Banking Coordination Directive). Plus the fees involved in setting this up would also be extremely high. As the activity would involve deposit taking, the Payment Services Regulations (PSRs) would also apply. To collect funds without informing the FSA would put UFO in a dangerous legal position.
Prevention Rather Than Cure
At UFO we believe in prevention rather than cure, which is why we have in place our Membership Rules, in particular:
4.1. Unless alternative terms are mutually agreed between both parties, payments between Members must not exceed 30 days from the invoice date.
4.2. If a Member defaults on Rule 4.1, the UFO Head Office reserves the right to place the Member on Default Alert and notify all Members via the UFO Mailing List.
4.3. To ensure smooth cash flow and to prevent overdue payments, Members are encouraged to enter the details of all outgoing invoices to fellow UFO Members into the UFO Payment Monitoring System.
4.4. All payments must be made in the currency that is marked as payable on the invoice. The sender must pay all relevant bank charges so that the full amount on the invoice is received.
4.5. Members must offer all new business to fellow UFO Members for quoting. Existing long-standing relationships are acceptable on the basis that a Member may not reciprocate business in those areas. These areas must be specified upon Application.
4.6. The UFO Head Office and UFO President cannot be held responsible in case of commercial and/or financial obligations that are not met by (a) UFO Member(s).
4.7. To avoid fraudulent scams, Members are to be extra cautious when transferring funds. Members are requested to telephone the management of the UFO Member for verbal clarification of any amendments, including changes of bank accounts.
Note that terms of shipments and/or payments between two Members can be changed to suit both parties, as long as mutually agreed in advance.
Payment Monitoring System
Our Payment Monitoring System (found in our Members Area) has been developed to encourage smooth cash flow between UFO Members and to prevent late payments. Once logged in, each Member can add, view and edit details of outstanding invoices within our network. The system sends a 'Statement of Accounts' to each Member every 2 weeks highlighting due dates. Please watch our short video for instructions:
Remember that the role of UFO is to introduce agents to each other and provide platforms including our Network Meetings and Meeting Hub where you can introduce your company, highlight specialist areas, discuss existing and future business.
We can provide neutral arbitration to encourage prompt payments and quick communication between Members. However, we are unable to provide any financial guarantees. It goes without saying that you should confirm and agree all terms of shipments with your fellow network partners before they are released to avoid any misunderstandings or problems.
UFO Members understand that abidance of our Membership Rules, paying on time and operating in a professional manner results in repeat business and excellent relations. Therefore, we hold an excellent record of financial stability within our network.
