How do I get my business credit controlled?

Kevin_Tiggemann1437700513[1]

Kevin Tiggemann AreaManager for EC Credit Control was able to share the answers with his fellow members at the recent Metro Networking Breakfast in Adelaide.

 

Who is EC Credit Control?

 

•EC Credit Control has been operating since 1989 with over 60,000 clients throughout Australasia

•EC Credit Management for SME businesses has been widely acknowledged as the best in the industry

•EC Credit has a Terms of Trade department that specializes in commercial law & a Debt Co

What’s in it for YOU?

 

We customize the Terms of Trade documentation specific to your business

•Help protect you against bad payers, loss of profit, provide indemnity from potential liabilities & check your clients credit history before you commence any work

•Make your business look more professional

 

Main Core Principles

 

•Debt Recovery

•Terms of Trade Documentation

•Online Credit Checking & Alerts

•PPSR Subscription Service

 

Debt Recovery

 

Debt Collection is without doubt a specialist area. Whether you are dealing with consumers (Individuals) or businesses (Commercial), these debtors often have a reduced understanding of credit management and this can make it exceptionally difficult to effectively communicate with them. That’s the cue for EC Credit Control and their specialist Recovery teams…

Operating since 1989 we have the experience, know how and ability to collect your debt, consumer or commercial, in a prompt and efficient manner. EC Credit Control have an extensive network of offices and administration centers throughout Australasia so you can rest easy by giving us your debt to collect. We know you work hard for your money, which is why we work hard to collect it. Working with EC Credit Control allows you to get on with what you do best – running your own business and generating profit.

 

Debt Collection

 

•  EC can chase up bad payers up to 6 years old

•  28 day collection process

Day 1 – Letter of demand

Day 7 – 2nd stronger letter of demand: warning of adverse credit rating

Day 13 – Personal contact 24 hour ultimatum – issue court proceedings

Day 14 – Formal Notice of Intention

Day 21 – A final demand is served

Day 28 – If not paid the debtor is listed as a defaulter & informed of litigation proceedings

Credit Reporting

 

EC Credit Control has an alliance with Australia’s largest and most sophisticated credit information provider, Veda.

We can supply you with all the latest commercial and consumer* credit information services through our single interactive website.

EC Credit Control is now a single point of contact for your credit.

 

Veda Advantage

 

Veda provides credit related information to Australia’s major organizations helping to ensure we can present accurate credit related insights to EC Credit Control users on around 2.5 million entities and their directors across Australia.

One of the key financial challenges facing businesses today is having access to the credit information they need when they need it. The more you know about your customers or potential customers the easier it is to structure a business relationship right from the start.

EC Credit Control makes it possible for you to have the right information at your fingertips 24/7.

 

Terms of Trade Documentation

 

The benefits of comprehensive Terms of Trade Documentation are vital for the smooth running of your business. They will help protect against the loss of profit, provide indemnity from potential liabilities and enable charges to be imposed for late payment. They also provide the advantage of Reservation of Title until goods are paid for (available in most circumstances where goods are sold). Full recovery of collection costs can be a simple matter of having straightforward and effective Terms of Trade and credit management policies in place.

 

Security and Charge

 

•If your client is in default and owes you money, and your client owns any land or real property, this clause will allow you to register a mortgage or

•charge over their property to the value of the goods or service

•Your client can be forced to sell any land or property they own to pay you

•Protects you in the case that a business changes ownership

•Indemnifies you against costs and disbursements under this clause

 

Acceptance

 

•Outlines that your customer accepts the Terms of Trade you have set out

•By accepting quote with the attached Terms of Trade at the commencement of the job it is legally deemed that they have accepted the Terms and Conditions

•All debts are considered joint and several in those circumstances

 

Price and Payment

 

Outlines and stipulates the requirements of payment for Goods or Services, and method of payment, including but not limited to;

•Credit Terms

•COD

•Progress Payments

•Payment Options – Credit Cards, EFT etc

 

Default and Consequences

 

If your client does not pay for the Goods or Services supplied you are entitled to;

•Charge overdue interest under the Penalty Payments Act

•Charge costs of collection

•Charge administration fees

•Charge legal expenses

•Including litigation costs

•Stop any further delivery of Goods or Services.

 

Privacy Act

 

Under the Privacy Act Clause you can;

•Complete credit checks on your clients either Commercial or Consumers

•List clients as defaulters, therefore blacklisting their credit rating for 5 years

•Direct market to your client base or share information with other parties

 

Defects, Warranties & Returns

 

•Determines a time limit for your client to notify you of any defects or errors in the Goods or Services provided

•Outlines your workmanship warranty

•Allows you to pass on the manufacturers warranty to your client

•Protects you against misuse or poor maintenance by your customer

 

Cancellation

 

•Gives you the right to cancel the contract and refund all deposits paid to you prior to work commencing

•Provides protection that if your client cancels the contract, they will be liable for any costs and expenses you have incurred

•Protects you if client cancels something you have specifically made or had produced by special order

 

Definitions

 

•Outlines the terms used in the contract, to describe the relationship between you and your client

•Defined as they are used in common language

•Courts have dismissed statements of liquidated claims where there are no definitions included in contracts

 

General Clauses•

 

Covers clauses such as;

•Failure to enforce any provision

•Jurisdiction

•Consequential Loss

•Set off of payment

•Subcontracting

•Right of Review

•Force Majeure (Act of God clause ie Earthquake, Flood etc )

•Limitation of Liability

 

Overview

 

•Comprehensive Terms of Trade customised to your individual specifications

•Fully customised credit forms

•Free credit management advice

•Free lifetime review service

•24 hour online web access

 

PPSA & PPSR

 

•National Australia Bank talking about the PPSA

http://www.youtube.com/watch?v=GGYwUNY-bSs

•With a PPSR on your debtor you are a secured creditor along with the bank even ahead of the ATO. In the event of a liquidation your money is secured, however without the PPSR you are unsecured and may be subject to claw back

•With a PPSR on your Equipment you protect your investment also in the event of a liquidation and retain ownership. Without a PPSR the liquidator takes ownership

 

Where are you?

 

Don’t be last in line. Protect your position

 

What is happening?

 

The Australian PPS Act establishes the Personal Property Securities Register (the PPS Register). It is a single national register which will replace numerous State, Territory and Commonwealth electronic and paper registers.

What does it mean? The PPSR – personal property securities register – gives you a better chance of recovering debt if your debtor defaults, as it enables you to become a ranked creditor.

The Act contains rules for determining priority between security interests. It’s essential that businesses register their security interest otherwise secured creditors will take priority when payments are made or assets distributed.

Change your Terms of Trade

To protect your position it’s vital that your Terms of Trade are amended to reflect the new lay change. At EC Credit Control, we’re a leading supplier of Terms of Trade documentation designed to help and protect your business from not only bad debtors, but general business disputes and misunderstandings.

Because every business is different individually tailored Terms of Trade are essential. Documentation supplied by EC Credit Control has been developed in conjunction with legal practitioners throughout Australia.

All documentation will include your logo and any other specific information that your business requires.

The Australian Personal Securities Act 2009 has been under review and the new Act came into effect in Jan 2012.

 

Personal Property Securities Act

Personal Property Securities Register

 

•Is for Goods or Services. It gives you the ability to register a security interest on Goods or Services that you supply to your clients

•By registering your interest on the Personal Property Securities Registrar, you can become a secured creditor if your client goes into liquidation

•The PPSA was set up in 2012 to help small businesses like yours to get paid even if your client goes BANKRUPT

 

Preferential Payments

 

Preferential clawback happens when the liquidator, who has been appointed to a company you have been dealing with, requires you to repay funds that had been previously paid to you. They can do this for any payments made by the company within 6 months prior to them going into liquidation and which the liquidator deems to be preferential.

So if you’ve been paid by a company that then goes into liquidation, and that payment was less than 6 months prior to the going into liquidation, then you may have to give the money back.

But not if you’re a secured creditor. Normally, liquidators can only clawback preferential payments that have been made to unsecured creditors. If you’re a secured creditor via the PPSA, then you’re protected from this.

photo For more information contact Kevin Tiggermann

Mobile:    0438500244

Email:      kevin.tiggermann@eccreditcontrol.com.au

http://www.eccredtcontrol.com.au

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Leave A Reply

Leave a Reply

Your email address will not be published. Required fields are marked *

Weekly Breakfast Meetings

How would you like to come visit our next MNI breakfast? Register below and get your first breakfast free!

Metro Networking Inc. meet every Thursday morning, at the Royal Coach Motor Inn, 24 DequetevilleTerrace Kent Town. 7am for 7.15am start.Click The Join Metro Networking Button To Register Now.

Please Fill in your details below and an MNI committee member will be in touch to answer any questions as well as confirm your booking at the next available networking event...