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For more information, call our Prushka Client Services Team now, on Free call 1800 641 617 or email [email protected]
OCTOBER 2016 CASHFLOW 1
The Prushka Fast Debt Recovery Client Newsletter OCTOBER 2016
The Fairytale economy continues…But where isthe cash?
We are often asked if we can lodge a caveat over a bad payer’s property.The answer is that you can’t, unless the customer has signed an agreement with you whereby he expressly charges the property and allows a caveatable right.
However, after you sue and obtain judgment, there are options for getting hold of the debtor’s interest in real estate.
If the judgment is for over $5,000, including costs and interest, the
debtor can be made bankrupt and his interest in the property will then pass to the trustee in bankruptcy.
In Tasmania and South Australia, it is possible to lodge a notice on the debtor’s title, after obtaining judgment and ultimately force a sale.
For all states (except NSW), it is possible to get an Order for the sheriff or bailiff to sell the debtor’s interest in real estate.
To find out more, call the Prushka Client Services Team on 1800 641 617. They will put you straight through to a lawyer from Mendelsons Lawyers.
LODGING A CAVEAT
Our economic growth story continues and there is no real sign that it is going to end soon.Economic growth is over 3% per annum, inflation is low, interest rates are at historical lows, unemployment is low and businesses are busy.
If that is so, why are you always struggling with lack of cash in your business?
Part of the reason is that business competition is intense, so profit margins are low.
The other reason is that you probably have a lot of funds tied up in work in progress, stock, outstanding book debts and are being squeezed by your
suppliers to pay them quickly.
You are not alone.
Read and pass it on to your colleagues and pick up great tips on how you can improve your cash flow.
40 Years of
No Recovery
No Charge
Debt Collection
19762016
For more information, call our Prushka Client Services Team now, on Free call 1800 641 617 or email [email protected]
2 CASHFLOW OCTOBER 2016
SEND DEBTS IN UNDER 6 MONTHS OLD… & SAVEDebts which are sent to Prushka which are more than 6 months old, are subject to an old-debt levy of an additional 10%.The reasons for this are obvious. Old debts are much much harder to collect.
Avoid the levy. Make sure you send your debts in before they are 6 months old.
Prushka collect debts from as low as $50.00, so neverwrite-off small debts.There is no need to complete an individual Action Form for each debt. Simply complete one Action Form and attach a copy of each invoice or alternatively, a detailed print out providing details of each debt.
SMALL DEBTS!
GET MONEY IN FOR CHRISTMAS. ACT NOW!
Christmas is usually crunch time for many businesses. Over the slow-down or close-up period, revenue grinds to a halt but you are hit with the largest wage bills of the year.Plan for this now. Send all your overdue accounts in to Prushka, including debts as low as $50.00 and debts which you have previously written off, up to 4 years old.
MAKE LIFE EASYThere is no reason to complete an Action Form for each debt you send to Prushka. As a Prushka client, you will have a Prushka Client Number (which is displayed on your monthly statement). If you don’t know your client number, simply call the Prushka Client Services Team on 1800 641 617.To send further debts, all you need do is send copies of invoices for the debts which are overdue or a printout detailing the overdue debts and quote your client number.
HOW LONG DOES A DEBT LAST?
The simple answer is that a debt is legally enforceable for up to 6 years (depending on the state).Thus, even if you have written off the debt and ceased collection, you can still reactivate it at any time during that 6 year period.
The period is extended if you enter into an installment arrangement with the debtor. The 6 years will then run from the date the debtor breaches that installment agreement.
If you sue and get a judgment, you will extend thelife of the debt for between12-15 years.
POST AND CHEQUES ARE DEADGet with the new economy.Sending out invoices and statements by mail is so last century.
Contacting your smaller business customers and consumer customers by landline is almost finished.
Cheques are dead (unless your customers are over 80 years old).
When setting up new customers, always get their mobile number and email address.
When forwarding accounts to Prushka for collection, always provide us with mobile numbers and email addresses.
For more information, call our Prushka Client Services Team now, on Free call 1800 641 617 or email [email protected]
OCTOBER 2016 CASHFLOW 3
CREDIT APPLICATION
FORMS
If your customer has a genuine dispute with your business, you will hear about it loudly and quickly.If there is a dispute, you need to listen carefully to what your customer has to say and act accordingly.
There is a huge difference between genuine disputes and “disputes” which just happen to be made several months later, when your overdue account is referred to Prushka.
If the dispute has not been raised previously, then the chances are that your customer is merely raising the dispute at that stage as a diversion tactic.
After all, the best form of defence is attack.
If a dispute is raised, your Account Controller will always discuss this with you, to see if it has any merit.
The general rule is that if, after reviewing the situation honestly and fairly, you are confident that you have “done the right thing”, then you will find that usually the court will back your judgment.
CHASING DIRECTORS
The best time to obtain useful information about your potential customer is the time when he makes application to you for credit.If a potential customer wants you to provide credit to him, he will provide information which will show himself in the best possible light. This will include information which is extremely useful in the event of default, including;
• Full name;• Home address;• Whether home is owned or rented. If rented, name of the managing agent;• Occupation;• Work details;• For healthcare patients, name and contact details of next of kin;
Well-run businesses obtain customer information before they grant credit.
Prushka provides user-friendly credit application forms for a variety of businesses and healthcare practices.
These can be easily adopted for use by your business, as they are in Word format.
To obtain your free credit application form, call the Prushka Client Services Team now on 1800 641 617.
There is a significant percentage of businesses run by private companies which are very risky to deal with.
These are businesses where the directors know how to “play the game”.
The chances are that you have been stung by some of them.
The pattern is familiar.
When the unpaid debts build up, the directors simply jettison the company and start a new one, effectively running the same business, but without the burden of the unpaid debts.
We are often asked by exasperated clients whether or not there is anything we can do about this. Our answer is usually that if the underlying business has been around for some years and the directors own their own
homes and appear to “live well”, there is something which can be done, but the outcome will be uncertain.
In those cases, we recommend that the company be wound up.
Our success rate in doing this is high.
The reason is that the liquidator can then look at loans made by the company to the directors and their families and can call those loans in.
As “phoenix companies” function by the directors taking funds out from the company which should really go toward paying the creditors, this allows the liquidator to effectively tackle the directors’ personal assets.
To find out more about this process, call Sue Stevens on (03) 9872 7289 or email [email protected].
RESOLVE DISPUTES EARLY
For more information, call our Prushka Client Services Team now, on Free call 1800 641 617 or email [email protected]
4 CASHFLOW OCTOBER 2016
Free call 1800 641 617 or email [email protected]
Commission rates from as low as 11%... And that is all you pay.Offices across Australia.
Simple, effective tips which are guaranteed to improve your !Get your bad payers to pay your debt collection costs.
Let us show you how easy it is to add additional clauses in to your business trading terms to provide that your defaulting customers are to also pay your debt collection costs.
This can be implemented immediately and there is no costs to you.
Call our Client Services Team on 1800 641 617 to find out how to do it.
USE PRUSHKA COLLECTION STICKERS TO SPEED YOUR CASH FLOW.Affixing Prushka Now Due, Over Due and Final Notice stickers on your invoice and two statements will speed your cash flow – because they introduce the Prushka name to your collection system and show that you mean business.
NEGOTIATE EXTENDED TERMS WITH YOUR SUPPLIERSWhen placing an order, make it a condition that you will require an additional 30 or 60 days credit. Most suppliers will willingly accept this. It allows you to start using your suppliers like a bank in the same way that your customers use you like a bank.
