FROM THE MANAGING DIRECTOR
I’d like to wish all our clients all the best for the start of 2014 and may the year bring you health, happiness and good cash flow.
On that note, if you would like to improve your cash flow and protect your margin – read on.
I would say that around 50% of all new clients we see do not have up-to-date or complete Terms & Conditions.
But we know that in order to collect debt effectively there needs to be evidence that the debtor:
- was fully aware of your T&Cs when transacting
- acknowledges the debt
- is aware of their obligations to pay this debt
- understands that reasonable recovery costs will be added to the debt (that is, if recoverable costs form part of your T&Cs)
The starting point is your trading terms.
- if you provide credit terms there are certain things you need to have in place to protect your position. This is part of credit control (see life cycle graph).
- even if you do cash sales you still need T&Cs. If you do cash sales and it goes wrong at POS (it happens) – you now have a debt to be recovered.
In either scenario without complete and agreed T&Cs what will be the foundation for the recovery action?
When we seek the background paperwork for some debts it is clear the fundamentals have not been addressed. You really do need paperwork (credit approval forms and transaction documents) in place …and it is also a good idea to have this information disclosed on your web site.
Ask us for more detailed advice on how your T&Cs can be updated and how this should be implemented for your organisation.
As I said …this can help your cash flow and protect your margin.
Our business is growing and as part of this evolution we have taken office space in two new locations.
Adelaide : South Terrace
Darwin: Mitchell Street
PRIVACY ACT – CHANGES 2014
Please be aware this year there will be significant changes to the Privacy Act. Specifically this will relate to the Privacy Regulation 2013, made under the Privacy Act.
The impact of these changes is most relevant to Lenders or recipients of credit information. This is expected to commence on 12 March 2014.
CLIENT IN PROFILE – REDEEMER LUTHERAN SCHOOL
Redeemer Lutheran School is a Reception to Year 7 co-educational school of the Lutheran Church of Australia, located in Nuriootpa, South Australia.
Redeemer refers their unpaid school fees accounts to Australian Credit Management for collection. We keep in regular contact via our client portal and also by email and telephone.
Recently Redeemer referred an overdue school fees account to us for several thousand dollars. The student’s parents had separated and neither was attending to the payment of school fees. After some negotiation with the student’s mother, full payment was received by Redeemer Lutheran School after a property settlement was finalised.
Graeme Kluske, Business Manager of Redeemer Lutheran School said;
“I have worked with quite a few collection agents over the years and have found Australian Credit Management to be as good as any.
Our Account Manager does a fantastic job.
The client extranet assists in keeping track of where it is all at.”
NEW REPORT IN CLIENT PORTAL
If you are a client using our services for debt recovery you can now access a great new online report in the client portal. This Payment Arrangement Report shows all debtors on payment arrangements with date the deal was done, $ amount, next payment, etc. Check it out now.
CREDIT LIFE CYCLE
As our business evolves we are enhancing our service offering across the credit life cycle (outlined below)
If we can assist you with:
Debt Collection Adelaide
Debt Collection Darwin
Debt Collection Melbourne
Debt Collection Sydney
Outsourced Credit Management
Please contact our offices today.