Kitchen Guarantee Fund
It is unfortunate but common knowledge in the kitchen industry: there are always new companies starting up ready to give it a go, but as with most businesses, not everyone will succeed.
Too often, consumers have been falling victim, when such a company faced a Receiver declaring Liquidation. Such consumers would have paid deposits worth thousands of dollars. Some did not succeed in retrieving their money.
With such substantial investments, you want to feel confident that your deposit is going to secure you a new kitchen. Renovations are often stressful enough without the added nightmare of losing your precious savings.
That’s why Kitchen Expo has introduced a consumer friendly way of not only guaranteeing your kitchen but safeguarding your deposit as well. All deposits from clients who register for the warranty will be guaranteed by Kitchen Guarantee Fund Ltd (KGF).
KGF is asset backed primarily by solid property investments and other assets. You know that there will always be funds to ensure that your future claims will be guaranteed.
KGF is operated as a separate entity from its kitchen supplier members. Claims will be accepted if any of the participating companies are no longer in business. Otherwise any claims are in first instance to be handled and covered by the company concerned. The guarantee covers your deposit, all units, benchtops, hardware and installation, provided these have been arranged by any of the participating companies. It excludes all appliances and other sub-trades.
Nervous about paying for a product you haven’t yet seen? The next biggest concern for the customer, now that their deposit is secure, is paying the balance before the kitchen is even installed. Suppliers who are members of KGF have the option of their customers depositing their kitchen balance in the KGF trust account. Trust accounts are kept separate from trading bank accounts and at no time are funds used for operational expenses of the fund. Funds are held on behalf of or “in trust” for the customer and no claim exists on these funds by KGF. The trust account will be audited annually.
The balance will be transferred to the supplier as 40% on notice of delivery and the remaining 10% on notice of completion. Once your kitchen is complete as contracted, a completion release form is signed which authorises KGF to release the remaining funds to the supplier. Where any valid disputes arise, these must be settled before the funds are transferred.
Should KGF cease to operate, all monies will remain in its accounts for a minimum of five years following the last warranty’s registration. With the KGF guarantee giving you total peace of mind, all you need to do now is concentrate on your exciting kitchen project!
If you would like further information or to verify any of the above statements please email Noeleen Petersen (Kitchen Guarantee Fund Manager): firstname.lastname@example.org