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Ledger Guard's Tips & Strategies - August 2011 |
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"Protecting Your Business" |
Tips & Strategies - August 2011
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How to be a priority creditor if your debtor goes broke
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Hi
How many times lately have you heard of businesses ‘going bust’ and creditors not being paid as a result? It’s tragic enough for the failed business but it sets off a damaging chain reaction for others who would otherwise be doing fine. In this newsletter we’ll raise again the topic of the Personal Properties Security Act which, if you sell or hire goods to customers, you will really want to take on board.
You’ll also be interested to read about some of the steps you can take to make claims on defaulted debtors, as long as you are registered on the PPSR.
Plus, we’ll share a little information on the Civil Dispute Resolution Bill which was introduced this year to help prevent so many business disputes going to court.
We are also pleased to introduce our client Pledge Cleaning Solutions. If you are looking for experienced commercial and industrial cleaners scoll down.
Regards
Larry, Geraldine, Mike, Emma and Ben
How to be a priority creditor if your debtor goes broke
Manage your debtors
Creditors need to protect their businesses from the risks involved in selling or hiring/leasing goods, and not being paid for them. If your debtor goes into liquidation or bankruptcy, you need to be standing at the front of the queue to be paid, not loitering forlornly at the other end, hoping your customer’s problems don’t bring your business to its knees.
There is now a way to ensure your position at the front of the queue, as a secured creditor!
From 31 October 2011, you’ll be able to register with the PPSR – Personal Properties Securities Register. It's a Federal Government initiative that has been established to provide a place where suppliers can list the security interests they hold in their goods sold or leased on credit to customers.
But! If you are not registered on the PPSR, your chances of reclaiming such goods – or being paid for them – are significantly jeopardised. Your claim will sit at the bottom of the heap, under all the other creditors who are crying out to be paid.
The PPSR ensures your rights are protected as a secured creditor. By fully complying with the requirements of the PPSA, you are entitled to a range of remedies as outlined under Did You Know? at right. Also, your claims for payment take priority over those of creditors who are not registered or those who registered after you.
Now we realise that the PPSA legislation will seem confusing at first. The Act and its requirements are quite complicated and it’s easy to get it wrong. Additionally, you need to know how to enforce your rights when a debtor goes belly up. If this happens you will be dealing with receivers or liquidators who can be very tricky players in the game of paying creditors.
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Do you want to be at the front of the queue?
We can help
At Ledger Guard, it’s our business to know the ins and outs of the PPSA legislation and to know how to guide our clients through the processes that will not only protect you, but help you make any claims with fewer complications.
Now is the time to prepare for the PPSR, so that when it’s all go at the end of October, you’ll be ready to take action.
Don’t allow your clients’ business failures to put YOU out of business! The PPSR will be your best ally and we’d be delighted to make the process seamless and simple for you. Find out more:
Ledger Guard's
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Ledger Guard's Phone: 07 3260 7232
Did You Know?
The new Civil Dispute Resolution Act 2011 (Cth)
A serious dispute with a customer is a potential risk in many industries, especially – but certainly not limited to –building and construction. Time consuming and expensive litigation can result, but as of 1 August this year, a new Act commenced that aims to reduce the number of cases going to court.
The Civil Dispute Resolution Act requires prospective litigants to take genuine steps to resolve a dispute before proceedings can be commenced in the Federal Court or Magistrates Court. It encourages the resolution of civil disputes outside of the courts and seeks to improve access to justice by focusing parties and their lawyers on the early resolution of disputes.
This will be covered more fully in an upcoming newsletter.
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In This Issue
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How to be a priority creditor if your debtor goes broke
Manage your debtors
Did You Know?
New Civil Dispute Resolution Act 2011 (Cth)
Do you want to be at the front of the queue?
We can help
Did You Know?
Remedies available to secured creditors
Introducing Our Client -
Pledge Cleaning Solutions
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Did You Know?
Remedies available to secured creditors
If you provide goods on credit and your client goes under before you are paid, then you have some very welcome remedies available to you thanks to your registration on the PPSR.
* You can more easily repossess your goods if they are still in your customer’s possession.
* You can claim payment for the value of your goods that your customer has used to make into something else.
* In some circumstances you can get your goods back if they have been affixed to something else, such as mag wheels on a car.
Contact Ledger Guard on 07 3260 7232 to find out more.
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"As a practice we've just been through a process of reviewing and tightening up our payment and credit Terms and Conditions with an outfit called Ledger Guard.
We felt Ledger Guard's service was extremely professional and their price point offered value for money."
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- Brad Peters
Registered Tax Agent Partner
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Introducing Our Client:
Pledge Cleaning Solutions
Pledge Cleaning Solutions is a Brisbane based commercial and industrial cleaning company with a team of professionals ready to keep your premises in tip top condition.
Their 100% guaranteed services include commercial and industrial cleaning, carpet cleaning, stain treatment & removal, window and washroom cleaning, and stripping, sealing & polishing of resilient floors.
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