EC Credit Control has provided Debt recovery services throughout Australia and New Zealand since 1989. An existing Newcastle-based client of mine who works in the construction industry had been successfully using our debt recovery service, which is a voucher system based on a â€œNo Collection, No Commissionâ€ remuneration, for a number of years.
The issue that I highlighted to this client a while ago was that their Terms of Trade did not include the necessary key clauses which legally allowed for their debt recovery costs to passed onto the debtor, along with administration fees, cheque dishonour fees and even interest. Hence the client was only receiving the recovered amount less commission and not including the other items. In other words they were missing out on collecting even more money from their debtor! This can have a severe impact on the profitability of any business.
After sitting down with my client I arranged for Terms of Trade to be drafted by the EC team that was tailored to suit their business. The new documentation includes all key credit management clauses, so that now my client is able to collect the full amount plus debt recovery costs, administration fees and any interest owing on top of the original outstanding amount. The debtor is now liable for all of this.
At a meeting with me last week the client summed up the benefit to his business when he stated â€œwe originally were not in a position to put the Terms of Trade in place, but since we have been operating with them, they have paid for themselves many times overâ€.
EC Credit Control services include: Terms of Trade, Debt Recovery, Credit Management documentation, PPSR assistance