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Ledger Guard's Tips & Strategies - April 2011 |
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"Protecting Your Business" |
Tips & Strategies - April 2011
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PPSR - Do It Right & Get Priority
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Hi
Have you lost money because a customer went into liquidation or bankruptcy and you were one of the unsecured creditors? Too often, by the time the bank, the finance company and the liquidator have been paid there is nothing left for the many suppliers who are owed money.
However after 10 October 2011, if you handle the registration correctly, the new personal property security legislation will ensure you are a secured creditor with a priority in your goods over all other secured interests including your customer's bank.
Geraldine recently attended an intensive full day seminar dealing with the PPSA and came away with some important information for suppliers of goods. Check out our main article below.
This month we also share an important tip on invoicing correctly and some advice on personal guarantees signed by your customers.
And we introduce our client Woodrats Joinery to those of you who are looking for high end traditional and architectural joinery, furniture and cabinetry. Scroll down for more information.
Regards
Larry, Geraldine, Mike, Emma and Ben
PPSR - Do It Right & Get Priority
Manage your debtors
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Have Security Agreements in place signed by your debtors e.g. a signed credit account application with your terms and conditions of trade attached.
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The Personal Property Security Register (PPSR) is a national web based register currently set to open in October. It will be operated by the Insolvency & Trustee Services Australia, available 24/7 in real time and will be fully searcheable.
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You can only secure personal property NOT services. For example if you supply labour and parts you can only register a security interest in the parts supplied. Personal Property includes goods sold or leased on a retention of title arrangement, goods supplied on a commercial consignment basis, goods leased for more than 90 days, hire purchase sales and intangible property such as patents, designs, trademarks and copyright.
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Inaccurate or incomplete registrations can be deemed invalid - You will need to follow the strict instructions to get it right. Ensure you have the correct legal name of your debtor, include correct serial numbers where relevant and describe the collateral broadly rather than narrowly.
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Your Retention of Title Agreements will NOT be enforceable unless you register your goods on the PPSR. The good news is, correctly registered goods will not be subject to liquidators' 6 month claw back (unfair preferences).
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There is a 2 year transition period from start date - Over that period you can register any pre existing security interests for free and retain your priority. This includes retention of title arrangements set up prior to the start date of the PPSA register, so make sure you have signed agreements from your customers on file now. Contact Ledger Guard to update your Terms of Trade and associated paperwork.
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Do You Hate Asking For Money?
We can help
Chasing customers for payment is approached with reluctance by most business owners and accounts staff. Emotions can understandably run high if your customer has a last minute complaint or makes endless excuses for not paying.
There are things you should do before you make that call, questions you need to ask your debtor, valuable negotiation techniques to use and notes to make on each call. If you aren't trained in debt collection it is a difficult task. If it's your own work or product that hasn't been paid for then the job of calling debtors must be all the harder.
Ledger Guard can help you and has 2 different services available:
We can act as your accounts receivable department and collect payment in your company name.
And secondly, as a licensed debt collection agency, we have the expertise and experience to handle any serious debtor problem.
Contact Larry Brownson at Ledger Guard on 07 3262 4369 or 0439 630 722 to discuss your requirements. Find out more:
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In This Issue
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PPSR - Do It Right & Get Priority
Manage your debtors
Did You Know?
Correct Invoicing; Valid Guarantees
Do You Hate Asking For Money?
We can help
Introducing Our Client
Woodrats Joinery
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Did You Know?
Correct Invoicing
Your invoices should be in the full legal name of your customer, not their trading name.
If your customer is operating as a trust with a company behind the trust (acting as trustee), your invoice should be made out to the company followed by the letters ATF and the name of the trust.
Did You Know?
Valid Guarantees
A Personal Guarantee must be signed by the person giving the guarantee (the guarantor). This means the director's signature, not the secretary's or manager's must be on the document and duly witnessed. You may be surprised how often the wrong person signs a guarantee and either that person (in ignorance) becomes personally liable for the company's debt or the courts decide the document is invalid.
Most Guarantees are not worth the paper they are written on so if you are unsure about any personal guarantee you have on file contact Ledger Guard on 07 3260 7232 for assistance.
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"We would recommend Ledger Guard to any business that needs debt collection or an update of their credit documentation"
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- Stephanie Walls
Franchisee
Worldwide Online Printing Hamilton
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Introducing Our Client:
Woodrats Joinery
Based locally in Capalaba, owner operators Chris and Paul have over 35 years experience in traditional and architectural joinery, furniture and cabinetmaking.
We are talking about the highest standard of workmanship from artisans who take pride in selecting the right timber for each project and maintaining the quality of work from start to finish. Take a look at Woodrats Joinery's fabulous website gallery showing many photos of the projects they have undertaken.
For more information contact Woodrats Joinery on 07 3823 4788 or check out their website.
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