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.

I had a Creditors Report come across my desk today, which is not that unusual, but what was unusual is the number and types of businesses I saw listed as Secured Creditors, having obviously registered themselves as Credit Providers on the PPSR. (Personal Property Securities Register)

Now whilst there were 262 Unsecured Creditors totaling a massive 6.5 million in unsecured credit, against only 44 Secured Creditors, I found myself really paying attention to the names of those secured creditors and the businesses they operate. Whilst I did recognise a couple of our clients on the Secured Creditor list there were quite a number of varied and smaller businesses which you don’t normally tend to see on a Creditors Report.

Which leads me to ask the question, Are Businesses Finally Learning How to Protect their Cash Flow with the PPSA? (Personal Property Securities Act)

What most businesses, and their professional advisors for that matter fail to realise is that no matter if you provide goods or services on credit the PPSA is there to protect their cash flow.

I would encourage all businesses owners to do a little investigation and find out for themselves how they can move from the list of 262 Unsecured Creditors to the list of 44 Secured Creditors.

“It’s your Business and Your Money”

EC Credit Control continues to play a significant role as the ‘go to’ for tradies in small to medium businesses. Now, by becoming a Tradebusters Academy Expert we have a greater reach in offering our debt recovery services, terms and conditions of trade and credit management products to tradies throughout Australia.

Tradebusters, a leading tradesman service provider, has recently launched the Tradebusters Academy online – a user friendly website where tradies can source information, tips and expert advice for their business.

Tradebusters Academy directs tradies to reputable service providers such as legal advisors, insurance companies, business coaching services, debt recovery and more, including the hosting of seminars and events to help tradies succeed in business.

As a new partner with Tradebusters Academy, we look forward to providing tradies with valuable advice, the right tools and strategies when it comes to protecting their cash flow and handling the ‘money’ side of their business.