“Last Monday on my way back from Seven Hills, I visited an electrical contracting business located in McGrath’s Hill, in Sydney’s western suburbs. The two owners of the business are driven young guys who are passionate about their business which is great to see. They had been referred to me by their book keeper located in Penrith who was familiar with the services of EC Credit Control and knew we could help them.
After learning they had a potential bad debt, I shared with them a couple of stories of local businesses and then went onto provide information on our short term & long term solutions. They said “Wow, it would have been good to learn this information before we started up our business!” You see up to 90% of the businesses we talk to DO NOT have Terms of Trade in place. In most cases it is a paragraph indicating the provision of the service they provide and payment terms are 30 days.
The boys were interested in the long term solution of EC Credit Control preparing Comprehensive Terms of Trade documentation. This documentation outlines exactly what each party’s responsibilities are, in terms of provision of their electrical contracting services and the payment for these, by his customers. This helps to remove any ambiguities that may have been in the minds of the customer about what service and payment responsibilities they are agreeing too and the consequences of not honouring the agreement.
We also discussed how a number of my client’s located throughout the Blacktown – Penrith – Windsor region in western Sydney benefit through a membership with Equifax, Australia’s leading credit reporting agency. Equifax allows you the ability to do a credit check on a new client as well as monitor your existing clients providing a snap shot of their credit history. How does this help? You can make informed decisions on the credit worthiness of your clients and be alerted if a current client is in financial difficulty – meaning you can potentially dodge a major bullet!
Meanwhile, if you are based in the Seven Hills, Blacktown, Penrith or Windsor regions of western Sydney and you would like to take a closer look at how EC Credit Control can help you improve your cash flow contact me now.