I met with a client recently to arrange protection for their business with comprehensive terms and conditions of trade. Included within these terms was provision to register under the Personal Property Securities Act to enable them to be a secured creditor should a debtor of theirs go into liquidation in the future.

During the conversation they told me of a friend who is an onsite diesel mechanic that had recently been issued with a payment demand for in excess of $60,000 for payments received that the liquidator deemed to be preferential. Truly a nightmare for a small one man business with no terms or knowledge of what can happen when a company goes into liquidation.

This is a story that happens too often where a large company takes a lot of smaller tradies down with them.

We at EC Credit Control specialise in educating you to create a Credit Management Plan designed for your business.