Kickfurther Update: Understanding Kickfurther Badges

Posted by Daniel Chen on Wednesday 27 Sep 17

Updated: September 26th, 2017

Kickfurther has new credibility badges that represent specific protections included in each Co-Op launched on the Kickfurther platform. You can choose to evaluate Co-Ops based on these new badges. These credibility badges will be viewable both within the Co-Op and also at a glance from the Co-Op cards seen on the "Browse" view.

Since different Co-Ops have different protections, different badges will be active on each Co-Op. Let's take a deeper dive into what each of these Kickfurther Badges represent. 

POBadge.png  Verified Purchase Order (PO)

A purchase order is a contractual agreement to purchase inventory. If a Co-op has a Verified Purchase Order Badge, it represents that Kickfurther has received the purchase order document from the brand and has verified the SKU, Pricing, and Quantity details with the Retailer or Distributor who issued the purchase order contract. 

AssignmentBadge.png  Purchase Order (PO) Assignment/Vendor Payee Change

Kickfurther can require that Purchase Order backed Co-Ops assign the proceeds of the purchase order to Kickfurther as well as confirm with the purchase order issuer that they will pay Kickfurther directly. The assignment is signed by the brand and the payee change must be made by the third party purchase order issuer. This ensures that payment should be made directly by the brand's client to Kickfurther. 

After the payment from the vendor is received, Kickfurther distributes the appropriate funds, including profit, back to the Kickfurther community members who participated in the Co-Op. The remaining amount is then sent back to the brand. 

UCCBadge.png  UCC-1 Lien

The UCC-1 lien is a financing statement that gives others, including existing or potential creditors, notice that Kickfurther has a prioritized right to take possession of the consignment inventory covered within. Kickfurther files the lien with the appropriate Secretary of State. 

RPBadge.png  Repeat Brand

The Repeat Brand Badge represents that the brand launching to Co-Op has successfully completed at least one Co-Op on Kickfurther. Successful completion is referred to as any Co-op where a business reaches the payout amount in full even if it is not within the projected timeline. You may peruse the details of their previous co-op payment schedule to judge their performance in a more detailed manner.

Brands that have multiple Co-Ops running concurrently but have not paid back the Total Payout Amount on any of their Co-Ops will not have this badge on their Co-Op. 

SDBadge.png  Supplier Direct

A Supplier Direct Badge represents that Kickfurther will either issue the payment for the production of the inventory or verify with the supplier that the production of inventory has already begun, and there is no outstanding balance to be paid. 

Brands that produce inventory in house are not eligible for the supplier direct badge. Supplier Direct payments are intended to ensure the propper use of Co-Op funds, but does not constitute any vetting or seal of approval by Kickfurther of the Supplier. 

PGBadge.png  Personal Guarantee

If a Co-Op has an activated Personal Guarantee Badge, it represents that an owner or executive of the company launching the Co-Op has signed a personal guarantee equal to the total payout amount. If the Co-Op is cancelled and the business itself was unable to meet the terms of the contract and potentially went bankrupt, the owner, as an individual, will still be responsible for the obligation.  

LA Badge.png  Logistics Access

Brands often use third party logistics providers (3PLs) to manage the distribution and fulfillment of their company. These 3PLs typically include services such as the storage, order processing, and shipment of inventory. To monitor their inventory, brands receive accounts to online systems that they use to see the real time events surrounding their inventory. 

If a brand on Kickfurther has the Logistics Access Badge, it represents that the brand has given Kickfurther access to their 3PL system account or the 3PL will otherwise be providing inventory reports directly to Kickfurther. Furthermore, it indicates that the Logistics provider has provided Kickfurther with a signed acknowledgement of our Power of Attorney.  With this information, Kickfurther should have much greater visibility into the sales of the inventory listed in Co-Ops and will be able to halt the order processing and shipment of the inventory if a brand is refusing to make payouts but is selling the inventory. 

Inventory Inspection.png  Inventory Inspection

Brands often rent or own their own warehouse space where they directly manage the distribution and fulfillment of their company. Brands use this method because it can substantially reduce costs for businesses that do sufficient volume to justify having the space and staff in house. Brands of this type are held to greater vetting requirements and required to approve monthly in person inventory inspections by Kickfurther's third-party provider. 

If a brand on Kickfurther has the Inventory Inspection Badge, it represents that the brand warehouses it's own inventory and that it has agreed to monthly inventory inspections. Furthermore, it indicates that the brand has been capped at a smaller raise and satisfied greater vetting standards than under Inventory Visibility or Purchase Order backed Co-Ops.  Kickfurther has regular verification of inventory levels and will be able to take corrective action quickly if any irregularity is detected. 

 

 

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Topics: Updates

Posted by Daniel Chen on Wednesday 27 Sep 17
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