How to Get Paid - Fast
Debtor Management for Small to Medium Sized Businesses
Turner Hopkins has recently developed a Debtor Management System for small to medium sized New Zealand businesses, which is designed to assist in the collection of debts in a highly cost effective and timely manner.
The processes we have developed can be broken down into three modules:
• The first module relates to ensuring the terms and conditions of trade (in other words the contract between our client and the debtor) is in the most up-to-date and appropriate form. A comprehensive term of trade agreement should provide for the following:
a) Guarantees by directors where the party obtaining credit is a company;
b) Personal Property Security Act registration in favour of the supplier;
c) Supply authority to the supplier to obtain credit references and list defaults through a credit reporting agency;
d) Allow the creditor to recover collection costs as well as legal costs and disbursements reasonably incurred in the case of a default.
We find that we are often able to quickly review our clients' existing terms of trade and supply appropriate amendments and suggested improvements at a very modest cost.
• The second component offers a fixed-fee follow up service, whereby a polite letter of demand is written to the debtor, and two follow-up phone calls are made. We then keep our client advised as to progress of the matter by email.
• Finally, we are able to commence legal action against a debtor for a fixed fee and in circumstances where a significant portion of the costs incurred can be recovered upon settlement. The legal process will need to be considered in each individual case and will depend on whether or not the debtor is a company or individual. Our clients are constantly and pleasantly surprised at the low costs at which we are able to commence legal proceedings.
In the current economic environment it is essential for business cashflow and liquidity to ensure that debt management systems are as efficient as possible.
We have a more detailed outline of these services available on our website (www.turnerhopkins.co.nz). Alternatively, we have prepared a brochure outlining our debtor management system. If you would like a copy of the brochure, please do not hesitate to call.
“Joy, we cannot thank you enough for your help with our purchase! You have been wonderful to deal with and so proactive (and patient with my numerous emails). We will be visiting NZ in April so will make sure we drop in to thank you in person.”
“I have used Turner Hopkins for my legal services for over eight years. I have always found their level of service excellent and their work to a very high standard. I have used various lawyers at their firm for various businesses I have been involved with and have always had very positive experiences. I would highly recommend them.”
“I can't speak highly enough of Jenny. She got everything done in a timely manner and when my ex-husband threw a spanner in the works at the eleventh hour she got the required documentation to his lawyers and settlement back on track.”
“I have struggled with different legal firms over the years, but over the past few years I have engaged with Turner Hopkins with various requirements from personal relating to wills, family trust, property settlements and contracts through to commercial engagements including employment advice, commercial lease agreements and general legal advice. I have engaged with a number of the people in the firm and always found them professional, punctual in their responses and very sound in the advice provided.”
“John is very easy to talk to, he never makes you feel dumb, and never makes you feel like you are wasting his time for asking questions. He explains everything very clearly, every time. John's support staff are also very efficient and so easy to deal with. No detail is missed when dealing with them. My husband and I are fans of them all :)”