It has been a “real buzz” to assist The Electrical Contractors Association of New Zealand to upgrade their Terms of Trade. Master Electrician Contractors are the professionals of the electrical trade and members in Greymouth, Nelson and Blenheim exemplify the high standards demanded by the group.
ECANZ The Electrical Contractors Association of New Zealand has a membership of 1450 electrical contracting businesses. These members employ 7000 electrical workers and have total annual combined sales of $1 billion.
With this kind of revenue ECANZ recognised that Comprehensive Terms of Trade are essential to outline to customers how their business operates and clearly set out in writing the relationship between the business and the customer.
In the event of a dispute, non-payment or defects these terms are the first point of review to determine what rights each party has. The correctly drafted Terms of Trade contain a Default and Consequences clause that is compliant with the Fair Trading act 1986 this means ECANZ members are legally entitled to add the collection costs including the debt recovery voucher fee and commission as well as interest on the unpaid account providing the Terms have been disclosed and accepted by the customer.
If your current “Terms of Trade” is missing The Privacy Act 1993, Personal Property Securities Act 1999 (PPSA), Default and Consequences of default to name but a few then you don’t have the necessary protection with your current documentation and a “Terms of Trade” upgrade is strongly recommended.
A number of ECANZ members saw the value in adding a Veda subscription to work alongside their new comprehensive Terms of Trade document.
Veda is the largest credit reference agency in Australasia. It provides credit reporting, credit scoring and marketing analytics services. Veda allows ECANZ members on subscription immediate access to the credit history of NZ companies and individuals. The completion of a credit check is a simple process that takes only minutes. It has given ECANZ members the ability to make informed decisions on what level of credit should be extended to new and existing customers.
One Veda check by a Blenheim based ECANZ member highlighted the importance of “doing your homework” on prospective customers especially as the customer was after a fair chunk of credit. In this instance the report showed the director checked had been taken to court for non-payment. His company also had registered charges against the business.
With this knowledge it was a “no brainer” that the ECANZ member decided against entering into a binding agreement with the prospective customer. Due diligence once again avoiding potential non-payment and future financial grief.
Small to medium business can be a “minefield”, don’t get an unnecessary shock, minimise the risks and increase the rewards by getting new comprehensive “Terms of Trade” in place today. You simply won’t regret it!
Ray Marshall EC Credit Control
West Coast, Nelson, Marlborough