Update to Kickfurther Badges

Written by Kaylyn Perry, updated September 30th, 2022

On Kickfurther, each Co-Op has credibility metrics that represent specific protections the business has agreed to verify or implement before the Co-Op is available for funding to the Buyers. Our Buyers can interpret these standardized protections as one way to evaluate each available funding opportunity in our marketplace. These credibility metrics are viewable both within the Co-Op and also at a glance from the Co-Op Cards seen on our "Browse" page and symbolized as Kickfurther badges.  The badges that are in color and not greyed out are the protections that the business has adhered to or implemented in order to launch the Co-Op.

Since each business offering has different variables affecting their perceived credibility, badges will be active on some Co-Ops and not others. Let's take a deeper dive into what each of our Kickfurther badges represent. 

Inventory Levels Access - NEW

Kickfurther is announcing the release of our Inventory Levels Access badge.  If this new badge is lit up it means Kickfurther can access the businesses's inventory quantities.  Since Kickfurther is a consignment agreement between the business and our Buyers, payment is only due on Kickfurther as the products consigned in the Co-Op are sold.  This new badge will help confirm that a business's submitted sales reporting is accurate.  This badge will replace the historical Inventory Inspection and Inventory Visibility badge.  In the past our IV and II badges focused on whether inventory was kept in a third party logistics provider, but over time we have found that a focus on regular access to inventory levels is a more important piece of information to share with buyers and better correlates with a Co-Op's success.  Kickfurther will still retain the right to conduct inventory inspections on all Co-Ops regardless of phasing out the Inventory Inspection badge.

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.  If this badge is lit up, it means that Kickfurther will file the lien after the Co-Op is funded.

Repeat Brand

The Repeat Brand badge represents that the brand launching the 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 full due payout amount 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 on past Co-Ops 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 lit up on their Co-Op overview card.

Supplier Payment Verification

A Supplier Payment Verification badge represents that Kickfurther will either issue the payment to a third party supplier for the production of the inventory or provide the business with a reimbursement for a payment they have already made to their supplier. Supplier payment verification is intended to ensure the proper use of Co-Op funds.  Additionally, for all Co-Ops regardless of the badge, Kickfurther conducts separate due diligence on the supplier itself to help ensure that the supplier is a real entity and that the Co-Op consigned inventory is real.

Personal Guarantee

If a Co-Op has a lit up Personal Guarantee badge, it represents that an owner of the Co-Op has signed a personal guarantee which covers the total payout amount due. If the Co-Op were to become cancelled, and the business itself was unable to meet the terms of the contract, and potentially go bankrupt, the owner, as an individual, will still be responsible for the obligation.  It also means that our collection agency can pursue both the business and also the signer of the PG in case the business does not fulfill their payment obligations.  The collection agency would also have the option of pursuing legal action against the business entity and also the signer of the PG at their discretion. 

Backed by a Purchase Order (P.O.)

A purchase order is a contractual agreement to purchase inventory. If a Co-op has a Backed by a Purchase Order badge lit up, 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 to make sure it is valid.

Purchase Order (P.O.) Assignment

After our due diligence team verifies the purchase order with the vendor that issued it, we then require that the business assigns ownership of the purchase order to Kickfurther.  If this badge is lit up it means that upon successful fulfillment of the purchase order, the business agrees to allow payment for the purchase order to be made directly to Kickfurther instead of to them. In other words, when the inventory in the purchase order is delivered to the vendor, the vendor pays Kickfurther the amount due rather than the brand.  This payment is then distributed as a payout to the buyers who contributed in the Co-Op.