With the downturn in the mining sector, you would expect that our clients in Karratha, Port Hedland and Kalgoorlie would have reported a corresponding upturn in payment issues by their clients. To date, our debt collection area hasn’t reported this. Maybe there is more patience also being applied.
If a business goes into administration or liquidation, then it is TOO LATE for debt collection – we legally can’t persue the account. This is a valid reason NOT to be too patient – sometimes it is a fine line in business, between losing a client or losing your money altogether! The safety net in these circumstances is to register ALL your clients on the Personal Property Securities Register (PPSR).
Darwin clients also report a major downturn in business in recent months. This is more in relation to large projects like Impex and the Waterfront, in their finishing stages. So business is generally tight there as well. Debt collection here has increased in number of debts being submitted to us by existing clients, but no new clients enquiries have come through.