– Johnston’s has a long track record of getting people paid in full and on-time. However, given the nature of this platform, we have even more measures available to us to ensure that users are paid within contract terms on this platform.
o Each user is given a credit limit and the system does not allow the user to take part in trades that exceed that credit limit. Credit limits are cleared when users mark their transactions as paid in the ‘Contracts’ tab of their profile.
o Each user is given a rating by the counter party after a transaction is completed. These user ratings are monitored by Johnston’s. If a user’s rating drops below a certain threshold Johnston’s can revoke a user’s trading privileges.
o Aggregating transactions on a platform like Johnston’s Online allows us to watch buyer performance in real-time. If user ratings begin to drop because of payment delays, we are able to respond in real-time as well. Options like lowering credit limits and revoking trading permission are at our disposal. We can manage this more easily than individual parties who are trying to manage credit exposure on their own.
o In the event of a default, the defaulting party’s name can be listed on a creditors list by Johnston’s. This is done at Johnston’s discretion and only if deemed necessary.
§ **We are working on negotiating a deal that will allow us to ensure every trade done through our platform with Credit Risk Insurance. This insurance would guarantee 90% payment in the event of a default by an insured buyer.**
o In the event of a default, Johnston’s will support the seller by all legal means necessary to help them recoup their costs. But the goal is to maintain a platform with users who are credit-worthy and ethical.