In the last week EC Credit Control has had several meetings with clients in the Liverpool and Macarthur regions of Sydney, in a wide range of industries. Across the board all have tried to create their own Terms Of Trade and upon review, or in some cases a painful bad debt experience, have found their current business documentation wanting. Don't risk the health of your business and yourself in this manner. Let an expert like EC Credit Control draft you something watertight to help improve your cash flow and combat bad debtors.
In one instance we were asked to advise a business based in the Hoxton Park area, with clients right across the Hoxton Park, Prestons, Liverpool and Macarthur Regions of Sydney. This business had been unable to recover a $28,000 debt. Their lawyer had spent a further $4,000 before handing it back as unwinnable. The reason was his Terms of Trade did not assist him in the recovery of his debt. He had no consequences he could impose on his debtor to enforce payment and nothing outlines the rules and boundaries of doing business with him.
On meeting the Business owner and probing a little further it was also discovered that he was not only at risk as far as Debt recovery, but being a hire business he had a far greater risk his existing Terms of Trade did not allow for him to register his dry hire equipment on the PPS Register!
In the case of this Hoxton Park Hire company it would have meant that if any one of his clients went into liquidation, in possession of his equipment, he was at sever risk of losing this expensive equipment to the Liquidator. The loss of equipment valued in excess of $200,000 is something not many businesses would survive!
EC Credit Control has since been able to help him implement the correct Terms of Trade, as well as register on the PPSR to secure his equipment on hire to clients.