by Henley RecoveriesGuarantee Your Earnings in FY2026!
If you’ve been in business lately you may have noticed that liquidations are on the rise in the past few years. Businesses going under seems to be the new norm in the Australian economy and navigating this can be extremely difficult.
Even in the last few months we have been assisting our hard working and genuine clients who are trying to do the right thing only to be bombarded by out-of-the-blue liquidations. Unfortunately the age of trusting a companies or persons word is no longer here and we want to provide options and methods that you can put in place to avoid this as much as possible.
Sometimes you can’t see it coming and this can have serious ramifications for your cash flow and business security and growth.
Service Agreements
To protect yourself and your business it is important to have as water tight contracts and service agreements as possible.
If you currently do not have any contract or service agreement in place we would highly recommend getting some legal advice and setting these up so that you are supplying services to your clients under clear and specified terms. Speak to us to discuss your options.
Setting the expectations and clear guidelines for what services are being supplied, what’s excluded and importantly what the payment terms are is vital.
Book a free consultation today to discuss with us how you can secure your services.
Director’s Guarantees
While not suitable for all businesses or business models a Director’s Guarantee or Personal Guarantee can be a very effective implementation into protecting your business:
- An additional agreement on top of the service agreement that means the Director personally takes guarantee liability of any debts that the company incurs.
- Ask yourself – is winning the project worth the risk?
- Do your background checks into the company/business/people that you are going to work with.
- If they do not want to sign it (which is a common principle for a lot of Director’s and for genuine reason at times) then assess this further. What is the reason for not wanting to sign this?
- Are there other projects that are more in line with your risk appetite at the moment that you could focus on?
Answering all of the above key questions will do wonders for you in determining if this business relationship is the right one for you.
Know Who Your Client Is
One of the most under-rated methods and tools for guaranteeing your earnings this financial year.
Talk to us today if you are considering a new business relationship and want us to conduct a review of the company that you are considering working with/supplying services to.
We can take a background look into the company on your behalf to understand more fully if this is a business relationship that is the right fit for you!
How Can We Help?
If you have found yourself in a situation where you are unsure of your best options we are only too delighted to see how we can help.
Thankfully, we are used to the situation never being the same and we are ready to deal with what you have to throw at us. If you are unsure if you have done all you can to protect yourself or chase up an unpaid invoice, give us a call. We will be happy to discuss and give you some thoughts on your specific situation both in how to protect yourself and how to help get out of a difficult situation!
by Henley Recoveries GroupCredit Bureaus, Credit Scores & Debt: How they work together
Credit Bureaus can seem like a rabbit hole when you start looking into them. These bodies have a significant place in the world of finance, lending and debt recovery in Australia; how they work together with other services is essential for business owners to understand.
What are Credit Bureaus?
Credit Bureaus are agencies that hold financial information about both individuals and companies. They collect information about credit ratings and supply this information to credit providers. They calculate the information provided to them and give a numerical score between 0 and 1, 200. The higher the number, the ‘safer’ that entity is to lend to.
How is a Credit Score Calculated?
When a credit reporting agency calculates a credit score on an entity, to give to a credit provider, there are a few different things that go into calculating that report. For example, a few different things that can be reported on include:
- The number of applications that the entity has made for credit
- Whether they have paid credit providers on time
- The amount of money the entity has borrowed
- Negative information provided from providers such as infringements, bankruptcies and defaults
There are a number of other factors that can also go into formulating a credit score, such as age, location, length of employment and the age of your credit history.
Where do Credit Bureaus Get Information From?
Credit Bureaus mainly get their information from creditors. This can include banks, finance companies, credit card issuers and telecommunications companies. They can also access information about entities from public records that can include business records, court records and property ownership information. Each bureau may hold different information and have varying sources that they gather that from.
Who do They Give Information To?
Access to information regarding your credit score is sensitive and credit bureaus take privacy very seriously. Because of this, only certain classifications of entities can view a credit report. Firstly, the individual or business that the credit report is about can request a copy. Other viewers that can apply include:
- Lenders you are seeking, or have sought credit from
- Debt Collection Agencies
- Utility and telecommunication companies
- Employers in certain circumstances
- Government agencies
- Insurance companies
- Real Estate companies and/or landlords
How Do Credit Bureaus and Debt Collection Work Together?
Occasionally, being contacted by a debt collector is not enough to prompt a debtor to make payment. An important part of our process is being in contact with credit bureaus. We can both provide them with information regarding a debtor, or they can provide us with information about someone who is seeking credit from one of our clients.
Can Credit Bureaus Help the Debt Collection process?
We have a partnership with a credit bureau that allows us to leave a negative footprint on a debtors account. These negative footprints can help the natural debt collection process, by providing incentive for payment. We can place either mercantile enquiries or at times payment defaults onto a business’s credit file. These remain on an account to be available for viewing, as well as being taken into consideration during calculations that form a credit score.
We have access to different credit bureaus that are associated with major Australian banks, finance providers and utility companies. At Henley Recoveries Group, we have the capacity to view credit reports that will denote how risky a potential client may be to provide service to prior to payment. This is a service we provide to our clients, alongside placing these footprints on debtor accounts, if they are unresponsive or unwilling to make payment. Credit bureaus work hand-in-hand with the debt collection process to provide an incentive for payment and act as a consequence for a non-payment.
If you have any questions regarding credit bureaus, credit reports and payment defaults, please get in touch with our team at info@henleyrecoveriesgroup.com.au, or view our services here.