fdsfd

1
WELCOME Feeding the Green Shoots Presented by
John Moorehouse on behalf of GWE Business West
1
2
CollecTT

• What is CollecTT.
• Terms and Conditions of Trading.
• Setting up a Credit Account with your customer.
• Knowing your customer.
• Customer Debtor.
• Type of Debtor.
• The Late Payment of Commercial Debts Act 1998.
• Court process.
• Court OnLine.
• Enforcement.
• Insolvency.

3
RECESSION IS A GOOD THING FOR BUSINESSES
4
TERMS CONDITIONS OF TRADING

• Purpose
• To protect, provide a structure for good business
  relationship between Supplier and Purchaser of
  goods or services.
• Must be contained in a written document normally
  signed by the Purchaser.
• Must be clear, precise and effective.
• Must be relevant to services and goods supplied.

5
AREAS WHICH MUST BE COVERED

• Definitions (eg, buyer, seller).
• Delivery is time of the essence!
• Date
• Arrangement
• Quality.
• Time limit for raising dispute.
• Risk and property/retention of title.
• Terms of payment.
• Right to interest and compensation under Late
  Payment of Commercial Debts Act (Interest)1998.
• To be able to claim all costs on an indemnity
  basis should a 3rd party be instructed to collect
  account in default.
• Loss of damage in transit.
• Acceptance of goods.

6
AREAS WHICH MUST BE COVERED

• Variations to Contract.
• Patent Rights / indemnity.
• Cancellation.
• Severability and no right of set-off.
• Assignment of Contract.
• Right to inspect goods.
• Right to recover goods (lien).
• Warranties and liabilities.
• Jurisdiction / Applicable law.
• Insolvency / Bankruptcy.

7
SETTING UP A CREDIT ACCOUNT

• Purpose
• Give you as much accurate information as possible
  to be able to provide credit for the support of
  services or goods.
• Steps
• To establish correct identity of customer.
• To confirm customers ability to pay.
• To agree trading terms.
• Credit Application Form
• Correct name.
• Correct trading address.
• Address of Partner / Sole Owner / Director.
• Bank details authority to obtain bank
  references.
• VAT number.
• Trade references.
• Signed by authorised person.
• Any restraint restrictions on placement of order.
• Directors Guarantee.

8
Knowing your customer
9

• Do you know the exact name and trading style of
  your customer
• Does the paperwork match the customer
• Does the payment details match the customer ..
  See proof of the account

10
KNOWING YOUR CUSTOMER
PARTNERSHIP
SOLE TRADER
COMPANY
LIMITED LIABILITY PARTNERSHIP (LLP)
11
Account name must be correct

• JM Co - WRONG
• JM Co Partnership WRONG
• John Moorehouse Co - WRONG
• John Moorehouse t/a JM Co CORRECT
• LLPs are partners, NOT directors but have
  limited liability.

12
THE DEBTOR

• To be successful you MUST understand the debtor.
• Generally debtors are usually identified by
  profile

Blue Chip
Small Business
Sole Trader
DOING THIS IS WRONG!
13
THE DEBTOR

• This only tells us the PROFILE, not the TYPE
• There are FOUR generic or core types

THE CASH-FLOW PROBLEM
THE DELAYER
THE KNOCKER
THE GENUINE PROBLEM
14
THE DELAYER

• Can afford to pay but waits until the last
  possible minute
• Always pays late, yet always pays in full
  (payment pattern behaviour).
• Pays on receipt of a certain letter in your
  recovery system (payment trigger)..
• Many different excuses/problems given/not
  consistent (payment spaghetti).
• Tries to take you off the scent when you call
  them (payment fogger).
• Remains calm and confident.

15
THE DELAYER
CHANGE PROCESS REDUCE OVERDUE DAYS BY TAKING
ACTION
16
THE GENUINE PROBLEM

• Would pay if the problem was sorted out
• Tells you as soon as they get the bill and not
  months later.
• Can itemise their case clearly and has supporting
  facts.
• Will pay undisputed parts of the account.
• Often angry/irate
• Resolve query before considering action.
• Inform customer of resolution.

17
THE GENUINE PROBLEM

• Resolve query before considering action.
• Inform customer of resolution.

18
THE CASH-FLOW PROBLEM

• Cannot afford to pay in one lump sum
• Pays round sums which do not resemble any one
  invoice.
• Cancels direct debits and regular monthly payment
  plans.
• Obvious change in circumstances death of a
  Director/Partner.
• May be angry and confused

19
THE CASH-FLOW PROBLEM

• Issue as soon as possible.
• You need to get to the top of the pile to get
  paid.

20
THE KNOCKER

• This debtor never intended to pay in the first
  place!
• Not in when they know its you who is calling.
• Does not return your calls or reply to
  letters/faxes/emails.
• No credit history or trail.
• Confident, strutting and arrogant, wants to meet
  your MD.

21
THE KNOCKER

• Thin line between DELAYER and KNOCKER
• Issue as soon as possible.

22
WHAT ACTION TO TAKE TO RECOVER A DEBT

• Depends on legal entity.
• Limited or Unlimited.
• 2 Main Roles
• Insolvency Proceedings
• Court Action

23
THE LATE PAYMENT OF COMMERCIAL DEBTS (INTEREST)
ACT 1998

• Business to business.
• Ability to recover compensation on late payment.
• Claim interest at 8 above base lending rate,
  even after Judgment.

24
COURT PROCEEDINGS
25
COURT PROCEEDINGS

• Claim Form
• Judgment
• Enforcement

26
COURT ONLINE(for claims up to 100k)

• Process to enable Court proceedings to be issued
  direct from our office in Swindon.
• No delay with post, etc.
• Immediately issued with Claim Number.
• Debtor demed to be served 3 days after issue.
• Court appointed will challenge weak defences.
• Reduced Court fees.

27
You have JUDGMENT ...

• What next?

28
ENFORCEMENT
HIGH COURT Over 650
COURT Under 650
BAILIFF Debtors Local Court
SHERIFF High Court Enforcement Officer
29
ALTERNATIVES
30
ALTERNATIVES

• Order to obtain information from Judgment Debtor
  (Oral Examination)
• Can be Judgment Debtor or Director or Officer of
  Limited Company
• Do not comply with Order
• F A C E P R I S O N !

31
ALTERNATIVES

• Third Party Debt Order (garnishee proceedings)
• Usually bank
• Can be Debtors own Creditor

32
ALTERNATIVES

• Charging Order (acts as security)
• Attachment of Earnings
• Insolvency

33
INSOLVENCY

• Failure to comply with Statutory Demand
• Evidence insolvent
• Execution of Judgment not satisfied in full

34
TIME SCALES
Invoice Due
PRE ISSUE
Instructions to TTLP
Solicitors Letter
DEBTOR PAYS
Part or No Payment
7 DAYS
STATUTORY DEMAND
ISSUE OF PROCEEDINGS
Check Registered Office and status of Debtor and
Issue Proceedings
Serve Debtor
14 DAYS
21 DAYS
Debtor Fails to Respond
Judgment in Default
ENFORCEMENT
Enforcement of Judgment

• Information Order

Insolvency Proceedings
Attachment of Earnings
Third Party Debt Order
Charging Order over Property
Writ or FiFa and Warrant of Execution
DEBT RECOVERED
35
FIXED FEES (Commercial)
36
FIXED FEES Payable on the issue of a Claim Form
37
FIXED FEES Entering Default Judgment
Enforcement
38
CollecTT

• A team lead by John Moorehouse specialising in
  credit management and collections.
• Able to offer fixed fees on most actions taken
  recoverable from debtor in most circumstances.
• Provide independent credit management and up to
  date legal advice.
• Prompt and efficient service.
• Support by other specialist solicitors in respect
  of commercial litigation including
• Terms and conditions
• Contracts
• Credit policy
• Restructures
• Insolvency
• Business acquisitions and sales
• Encourage good business practice to ensure
  sustainability.

39
THE END