In times like these, every business dollar has to count and the loss of any cash out the back door by way unpaid accounts places needless pressure on the business cash flow.
The provision of credit remains the foundation of the `Money Go Round’ for New Zealand businesses, enabling one entity to do business with another while providing goods and services on a basis of trust, but those goods and services must still be paid for within an agreed time frame if the business is to survive, and avoid using any form of Debt Collection
In a perfect world it’s a great arrangement – that is, until the unscrupulous take advantage and break the rules forcing the business to protect its income by minimising its exposure. To protect itself, a business must take steps to reduce loss caused by customers who do not pay on time, or in some case fail to pay at all.
However, It never ceases to suprize me how the importance of the Credit Application is and the way some businesses are all too often prepared to spend more on other processes instead. As a result, businesses are often left open to exploitation due to deficiencies in the document, or when there is no document at all.
To have an effective and profitable business long term they must be able to have an effective for of debt control to avoid using the services of a Debt Collection Agency, which is something that should be considered if clients are not paying on time.
Debtforce is a Collection Agency (Debt Collection NZ) based in New Zealand
There are a number of professional debtors who are experts at exploiting the weaknesses of a company’s credit agreements and its credit approval processes which often allow the debtor to walk away from overdue accounts. In such cases, the law does not view it in the same light as shop theft, for instance, though in my point of view, it is very similar.
