Spring cleaning can improve your cash flow

11th September, 2017

As we get settled into spring and with only 15 Mondays left until Christmas, it's time to get your spring cleaning gloves on and clear any bad debts out of the 'too hard' basket. Often, engaging an experienced lawyer to recover the debts can have immediate results, improving cash flow to your business and minimising risk posed by bad debts.

What are your options?

Letters of demand and minor debt proceedings

For the majority of our clients, we use a proven, streamlined process to recover secured and unsecured debts from debtors who either can't or won't pay.  We are able to issue a letter of demand to your debtors on the same day we receive instructions from you and, if the debtor does not comply within the required time, we can quickly file proceedings in the appropriate court.  If the matter is not defended, we are then able to obtain default judgment at the first opportunity.

Subcontractor charges and BCIPA claims

Depending on which industry you are in, we may also be able to advise you of other debt recovery options that can often lead to a quick and efficient recovery. For instance, subcontractors and those in the building and construction industry may be able to issue a notice of claim of charge under the Subcontractors' Charges Act 1974 to recover monies from parties higher in the contractual chain, or file a BCIPA claim for the recovery of progress payments.

Charges - caveat

Businesses should also look closely at their credit applications as quite often charging clauses may give you rights or security over a debtor's property which you may be able to enforce in order to recover the debt. 

PPSA

Businesses should also ensure they are registering their PPS interests regularly as a failure to register on time or a defective registration may mean your security interest is lost if the debtor company goes into external administration.  Additionally, creditors can collect their goods or may have a claim against cash held in a bank account if the PPS interest is a retention of title arrangement.

Winding up

If you are owed a debt by a company that is more than $2,000 and is undisputed, you also have the option of issuing a creditor's statutory demand which can often lead to a quick and economical recovery.  If the debtor does not comply within the required time, we can file proceedings to wind up the company.

For many of these debt recovery options, we provide our services on a fixed fee basis so our clients have the security of knowing upfront what costs they will incur. We can also work with you to devise a debt recovery strategy that meets the needs of your business.

How can we help?

At Scoglio Law, we have experience recovering debts of all sizes - from one-off large debts to debt ledger cleanups.  We understand the options, take decisive action, give clear commercial advice on value for money recovery and, above all, take the worry out of your hands. 

We have a strong track record in recovering debts on behalf of:

If you are owed money and would like our assistance to recover it, want more information about how our processes can work for you or are unsure about costs, please contact Tony Scoglio on (07) 3833 2100 or email tony@scogliolaw.com.au