With the highest bankruptcy figures ever recorded in Australia, all the Area Managers at EC Credit Control are constantly reinforcing the VITAL necessity of registering a security interest in your clients that you extend credit too, as well as stock, materials and equipment on a client's site or premises.
Sadly I received a call from a highly distraught client Eddie, who is a Plasterer based in Peakhurst, at 8.45pm last Tuesday 14th June. Eddie had been reliably informed regarding the impending liquidation of KEYSTONE PROJECTS. Although Eddie has Terms of Trade allowing him to make a valid registration in order to become a secured creditor, he failed to do so. Thus rendering him completely unsecured, dramatically reducing his chances of recouping any or all of the $150,000 he is owed.
It was whilst watching the news that night the story broke to reveal pictures of hundreds of tradies on multiple building sites frantically grabbing anything that belonged to them as the site was being locked down by the liquidators.
This is the sad face of the reality of our current economic climate. There are only 3 groups here, those that will lose something ,those that will lose everythingâ€¦..and then there are those who have taken on board the advice offered and actioned it, giving them the best chance of coming through these far too frequent situations unscathed.
The question to ask yourself is simply â€œWhich group are you in?â€