Description

In this episode of 'Business Know How,' host Melissa Bush, a lawyer with over 30 years of experience, dives into the crucial topic of debt recovery for small businesses. Melissa outlines essential strategies for recovering unpaid debts, including initial follow-ups, reminder letters, and the escalation to formal legal action. She also emphasizes the importance of knowing your customer, conducting due diligence, and addressing invoices correctly. The episode covers various enforcement options such as examination orders, garnishee orders, and property writs, along with the implications of bankruptcy and winding-up proceedings. Additionally, Melissa discusses a court case to highlight the risks of delaying enforcement. This practical guide aims to help business owners manage receivables and protect their cash flow effectively.

00:00 Introduction to Business Know How

00:58 Understanding Debt Recovery

01:55 Knowing Your Customer

05:30 Initial Steps in Debt Recovery

08:01 Legal Actions for Debt Recovery 11:09 Enforcing a Judgment

14:40 Case Study: Importance of Timely Action

16:31 Conclusion and Key Takeaways

• http://www.asic.gov.au – ASIC’s website can confirm the company name, the business name, the correct ACN, and will highlight if the company has been deregistered or is under external administration;
• http://abr.business.gov.au/—the Australian Business Register will show who owns a business name, Australian Business Number (ABN) and Australian Company Number (ACN);
• https://www.comcourts.gov.au/public/esearch/federal/bankruptcy—the Federal Court has an online bankruptcy search to identify whether a person is bankrupt.