Globalia only accepts those companies which have the highest levels of solvency, reputation and creditworthiness. Once in the network, The Globalia organisation continues to monitor each company’s performance detecting any early warning signs of problems, such as the late payment of an invoice issued by another member, promptly.
However, in these tough and uncertain times, the supply chain industry is suffering from delays, late or non-payments, increased in rates and cancelled shipments which have multiplied costs. That is why Globalia offers an additional guarantee for those members who want to stay 100% safe.
Additional security: Payment Protection Plan (PPP)
The PPP is an optional service that protects its subscribers against losses attributed to uncollected debts from fellow members in the event of bankruptcy or insolvency. Disputer invoices are not covered and are provided for under Rule 9 (Payments) and Rule 10 (Dispute Resolution Service) specified in Rules and Procedures.
How the PPP works
During the first quarter of each financial year, Globalia’s Organization may use a maximum of 80% of the monies in the PPP fund to compensate participating members who have debts outstanding from members who have declared bankruptcy or ceased operations during the year, to a maximum amount of 25,000 USD per debtor. In order to collect the debts legally, the PPP will utilise the services of a reputable debt collection agency.
PPP accounts will be kept completely separate from those of Globalia Logistics Network, and any PPP subscriber can view the accounts at any time.