If you were in the business of lending money and a prospect came to you and asked to borrow $20,000 for 30 days, but says they’re not prepared to sign paperwork to that effect, what would you do?
Whilst my clients in Melbourne’s CBD, Richmond, Abbotsford, South Yarra, Prahran, St Kilda and Bentleigh areas aren’t money lenders, they do provide goods or services to significant dollar values on delayed payment terms without a terms & conditions agreement in place. Why? Out of obligation to a repeat customer? Because they have good ‘gut instincts’ that the customer will pay promptly when the time comes? Because they want to do business on a handshake ‘like the old days’ even though the world & business practices has changed dramatically?
Step outside of your business and look at it objectively for a second – does delivering valuable goods or services on payment terms without a proper terms of trade agreement in place sound like good business practice? Why take on that risk or stress with your livelihood, every time you do business? We all sign terms & conditions regularly – for a mobile phone plan, for a credit card, for a 6 month interest free purchase – why is your business the one that operates without the protection it provides?
The seriousness and frequency of businesses selling on terms that have suffered financial losses due to non-payments has prompted the Australian government’s Financial Security Authority to publish a booklet titled “Are you in business?”, explaining the national legislation – the PPSA (PPSR is the platform) – and how it ‘offers businesses excellent risk protection’ by affording businesses financial security if their customer ‘doesn’t pay or goes broke’ via a registration process.
EC Credit Control’s Area Managers are on your side, and we’re specialists in advising on best business practices that are ultimately about protecting your livelihood and managing business’ Number 1 concern – cash-flow. You’ll be surprised how simple & economical it is to put this in place. We have already helped protect over 70,000 businesses with our services including preparing terms of trade, PPSR advice & registration and debt collection.
Call me on 0428 808 400 today and start a conversation about safeguarding your business and improving your cash-flow.