A lot of businesses extend credit to their customers.
We recommend businesses require their customers to make credit application, which incorporate the business’s terms of trade and can be registered on the personal property security register to give some priority in the event that the customer goes broke. They should include:
- All the customer’s details – name, ACN, trust names, business names, director details
- Full guarantees from the directors
- Retention of title in goods supplied until paid for in full
- Registration on the PPSR
- Interest on overdue accounts
- Full reimbursement for recovery costs in the event of default
These sorts of provisions make it a lot easier to get customers to part with their cash.
For solid Credit Applications for Businesses and other Business Documents, contact Michael Paterson & Associates.