Within the first 24 hours of receiving the cargo buyers on the platform can reject the cargo if it does not meet their expectations. Consequently, based on the result of the Quality Inspection (QI) report the following two events can occur:
- Failure to Pass QI – In this case the buyer can request a refund of the down payment or use it as an advance payment for a future order.
- Passes QI – In this case the buyer is contract bound to accept the cargo.
When cargo fails to pass the quality inspection, FarmUnboxed will find another buyer willing to take the cargo on a fixed price or sales commission basis.
A Letter of Credit (or LC) is often used as a universal method of securing payments in long haul across the world.
However, because of the short transition time and the perishable nature of cargo, a Letter of Credit is often avoided in trade between India and the UAE. Instead, business is usually conducted through informal business channels (i.e., trust of the importer).
The money is remitted to the exporter after the cargo has arrived in the gulf based on method of sale. If the sale is made on a commission basis the money is remitted within 7-15 days and if the sale is made on fixed price the money is remitted within 7-90 days.
In comparison, Sellers on FUB receive 100% of their invoice value within 24 hours of BL submission.
FarmUnboxed addresses variation in quality by:
- Ensuring all cargo is quality inspected at origin.
- Prioritizing sellers with direct access to farmlands.
- Providing detailed sourcing information and traceability of cargo from origin.
- Dealing with sellers that have storing, grading, and packing units.
- Dealing with sellers who have greater than 2 years of experience in exports with satisfied international customers.
- Ensuring all sellers are consistent in invoicing, providing export documents and complying with statutory regulation.
FarmUnboxed addresses this problem by implementing a stringent follow-up mechanism that tracks crucial stages in the order execution process. If a specific stage has not been completed before the pre-determined deadline, the buyer will immediately be informed by FarmUnboxed with alternatives to ensure the supply chain is left unaffected.