Approximately a month prior I was asked to consult an electrical company in the Broadmeadows suburb that had a stable number of dedicated clients, whereby my they believed that there never has been and were confident that there never would be any problems as far as their debtors were concerned.
Well as I suggested, Dick Smith Electronics also had a substantially huge number of commercial and personal clients with a super large turnover per annum, in the $Millions, BUT they still went into liquidation. When asked the question â€œwhy would this of happenedâ€ I really didn't know the answer â€¦BUT they did have Manufacturers warranties on the products they sold, BUT did they have their own specific Terms of Trade in the event of credit management needs for late or no payments from the clients?
Terms of Trade is a vital component in any business, especially if the company offers credit for seven days or more. The days of the â€œhand shakeâ€ means â€œNOTHINGâ€ anymore.
After explaining that chasing â€œbad moneyâ€ â€¦using a reputable Debt Recovery company with 27 years of expertise in all facets of Credit Management the client not only invested in EC Credit Controls debt recovery, they also saw the necessity to implement the Terms of Trade documentation and the Veda Credit checking facility also used and recommended.