Trade and Service Issues Bulletin 04/10

BE WARNED BY LATE DOCUMENTS

 
Firstly, it is a pleasure to welcome the new members of our information network who have been added to our circulation list following the BAFA2010 Conference. We hope that you will find our infrequent trade and service issues bulletins interesting and helpful.
 
We also remind all members of our network that you can phone me (0414 409 098) or e-mail me (jvl@dutg.com.au)  at any time with a question regarding a business or personal legal issue. There is no need to phone a third party to be given a reference number before making the call to access our service - all you have to do is pick up the phone.
 
Did you hear the one about ...
 
During the past month we have been involved in several situations involving network members, with clients: 
  • who continually have "late documents" for sea freight shipments;
  • who have been allowed to pay a part of their account;
  • who have been given more credit; then
  • have gone either into administration or liquidation,

meaning that there is often (though not always) little chance of the service provider being paid in full. 

 
Our suggestion:
 
"Late documents" are likely to be an indication that an importer is strapped for cash and could not easily pay for the goods, let alone pay your account. It could be that paying for the goods took all of their financial reserves until such time as the goods are sold and paid for, meaning delays and risks in you being paid.
 
Where clients have late documents on a regular or unexplained basis, it is probably best to take action to sever the relationship sooner rather than later, using the act of severing the relationship to collect all outstanding funds on their account.
 
No one likes to walk away from business, but do you really want to have people like this taking advanatge of your company's time and effort and increasing their debt to you, which may never be paid?
 
There are a range of stragies for dealing with clients like these and protecting your company's interests, with the strategies to be used varying on a case by case basis.
 
Please do not hesitate to contact me with any questions.
 
 
With best regards,
 
John Law
Solicitor and Director; Licenced Customs Broker
 
The Down Under Trade Group, for Justice, Trade & Customs
 
"Our Industry Experience, makes the difference"
 
Phone:
(02) 9873 1447 (International: 61 2 9873 1447)
Fax:
(02) 9873 1264 (International: 61 2 9873 1264)
Mobile:
0414 409 098 (International: 61 414 409 098)
Web:
 
Bennelong Legal
Central Coast Lawyers
Down Under Legal
Down Under Trade Group
mediating LATERAL Solutions -
Dispute Resolution without Litigation
 
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