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NASUAK GARMENTS LTD.DUE DELIGENCY AND CREDIT RIGHTS
Overview
NASUAK Garments Ltd, a rapidly growing garments making company with an online garments store based in Uganda, specializes in making a wide range of high-quality garments. Through its garments onine platform (nasuak.com), NASUAK Garments Ltd enables clients to purchase its products, use its services, and enroll in its training courses online or physical attendance. Given the nature of online transactions and the scale of business operations, due diligence and credit rights are essential elements for ensuring smooth operations and minimizing risk for both the company and its clients
- Due Diligence Process
Due diligence refers to the steps NASUAK Garments Ltd undertakes to verify the identity, reliability, and financial stability of clients before providing them with access certain products, services, or courses through the online platform. The objective is to reduce the risk of fraud, default, and ensure that the business operates in a lawful and ethical manner.
- Client Registration and Verification
- Client Profile Creation: When a client registers on the website (nasuak.com), they are required to provide essential personal and business details, including full name, email address, physical address, contact number, and business registration information (if applicable).
- Verification Process: NASUAK Garments Ltd uses an email or phone number verification system to ensure that the client’s provided contact details are valid. Additional verification, such as government-issued identification or business registration documents, may be required for corporate clients.
- Know Your Customer (KYC) Compliance: For larger transactions or business accounts, NASUAK Garments Ltd may implement KYC procedures as part of anti-money laundering (AML) regulations. This includes verifying the client’s identity, source of funds, and business activities.
- Risk Assessment
- Credit Risk Assessment: For clients who request credit terms or installment payment plans, NASUAK Garments Ltd will assess the creditworthiness of the individual or business. This may involve reviewing credit history, conducting background checks, and evaluating the client’s financial stability.
- Transaction Monitoring: NASUAK Garments Ltd uses automated systems to monitor transactions on the e-commerce platform for suspicious activities or irregular spending patterns. This helps in identifying potential fraud or misuse of the online platform.
- Background Checks
- Corporate Clients: For business clients purchasing bulk orders, especially government agencies or corporate organizations, NASUAK Garments Ltd may perform additional checks on the client’s reputation, financial history, and their ability to fulfill payment obligations.
- Client Reviews and References: Where applicable, NASUAK Garments Ltd may request references from previous suppliers or partners to assess a client’s credibility and payment history.
- Credit Rights and Payment Terms
NASUAK Garments Ltd offers different payment options to clients purchasing products, using services, or enrolling in skilling courses through the online platform. These options include upfront payments, installment payments, and potential credit terms for established clients.
- Payment Methods
Clients can choose from a variety of payment methods, such as:
- Credit/Debit Cards: Secure payment via international and local credit/debit cards.
- Mobile Money: Popular in Uganda, mobile money services like MTN Mobile Money and Airtel Money may be available as payment options.
- Bank Transfers: For larger transactions, clients can opt for direct bank transfers.
- PayPal and Other Digital Payments: International clients may use services like PayPal to process payments.
- Credit Terms for Established Clients
For loyal and long-standing customers, NASUAK Garments Ltd may extend credit terms. These credit facilities may be offered under the following conditions:
- Pre-Approval Process: The client must go through a credit evaluation and approval process before credit terms are granted.
- Credit Limit: A predetermined credit limit is established based on the client’s payment history, business operations, and financial standing.
- Payment Schedule: Clients granted credit are given a payment schedule, which outlines the timeline and structure of payments (e.g., monthly, quarterly).
- Late Payment Penalties: In the event of delayed payments, NASUAK Garments Ltd may charge interest on outstanding balances or impose a late payment penalty as stipulated in the client agreement.
- Return and Refund Policy
NASUAK Garments Ltd has a clearly defined return and refund policy that applies to all purchases made through the website. The policy includes:
- Product Returns: Clients have the right to return defective or incorrect products within a specified period (usually 1 – 21 days depending on location) from the delivery date. Clients in Uganda must inform us of the problem with the product within 1-2 days from the date of delivery. The company will process returns based on the condition of the product.
- Refunds: Refunds are issued for returned items that meet the company’s return criteria. Refunds may be credited to the client’s original payment method or as a store credit.
- Default and Credit Recovery
- Collection of Outstanding Debts: In cases where a client defaults on payments, NASUAK Garments Ltd will follow a formal collection process. This may include reminders, legal notices, and working with third-party debt collection agencies.
- Credit Recovery: If a client’s debt is not cleared within the stipulated time, NASUAK Garments Ltd reserves the right to suspend or cancel ongoing services or deliveries until the outstanding balance is settled.
- Client Rights and Responsibilities
- Client Rights
Clients have the right to:
- Accurate Product Descriptions: Clear and accurate descriptions of the products, services, and skilling courses offered on the platform.
- Transparency in Pricing: Full disclosure of all costs involved, including taxes, delivery fees, and any additional charges for services like embroidery or customizations.
- Quality Assurance: NASUAK Garments Ltd guarantees that the products meet industry standards for quality and will rectify any issues related to defects or discrepancies.
- Confidentiality: Protection of personal and financial information, as NASUAK Garments Ltd adheres to best practices in data protection and security.
- Client Responsibilities
Clients must:
- Provide Accurate Information: Clients are responsible for ensuring that the information provided during registration and purchases is accurate and up-to-date.
- Adhere to Payment Terms: Clients must honor the payment terms agreed upon, whether for one-time purchases, installment payments, or credit-based transactions.
Compliance with Laws: Clients must comply with the local laws and regulations governing online transactions and e-commerce in Uganda, including laws regarding consumer rights, taxes, and import/export regulations
- Legal Considerations
- Terms and Conditions: Clients must agree to NASUAK Garments Ltd’s terms and conditions before making a purchase, using a service, or enrolling in a skilling course. These terms outline the rights and obligations of both parties.
- Dispute Resolution: Any disputes arising from transactions will be addressed in accordance with the company’s dispute resolution procedures, which may include negotiation, mediation, or legal action in Uganda’s jurisdiction.
Conclusion
NASUAK Garments Ltd takes its due diligence and credit policies seriously to protect both the business and its clients. Through a comprehensive verification process, transparent payment terms, and clear client responsibilities, the company ensures smooth transactions and builds long-lasting relationships with its clients. Clients are encouraged to review the terms and conditions of the platform to understand their rights and obligations when engaging in transactions via the NASUAK Garments Ltd e-commerce website (nasuak.com).
