I work throughout Sydney's inner west region covering; Concord, Croydon Park, and Burwood. I work alongside many respected Accountants and their clients to help them with their Terms of Trade, cash flow and overall Credit Management process. As one business in Concord I recently sat down with found out, if you don't know how to manage your cash flow and handle bad debts you may not have a business for very long!
This wholesaler, who supplies to retailers throughout Sydney's inner west, has just experienced a long term retail client based in Burwood default on them. The debt they are owed is over $40K and they are finding out the hard way how difficult it can be to impose consequences without a watertight contract in place. The debt is now 120 days plus. Despite numerous visits to Burwood to try and resolve this, the debtor continues to give the wholesaler the â€˜run around', almost daring the wholesaler to take him to court. I am optimistic we can get this resolved without resorting to legal action with our proven debt recovery process. However if the wholesaler had up to date Terms of Trade in place they would be able to impose severe consequences on this debtor without legal action, putting himself in much better position to quickly and efficiently recover the debt through our debt recovery team with the debtor liable for all the collection costs.
Up to date Terms of Trade can help protect any business from debtors and it provides legally binding consequences for non payment. Having the correct clauses in your Terms of Trade will also help you become a secured creditor on the Governments Personal Property Securities Register giving you additional benefits and protection. If you are based in Concord, Croydon Park, Burwood or anywhere in Sydney's inner west for that matter, you should sit down with me to find out what your rights as a business owner are to ensure your cash flow is protected..