Wellington Lawyers: Tough Times Ahead: Staying Ahead of Debtors

WELLINGTON, New Zealand - July 15, 2024 - PRLog -- High inflation and interest rates have created a challenging economic environment in New Zealand, with many businesses and individuals facing financial strain. Our interactions with clients suggest that these tough times are likely to continue for the foreseeable future.

Are Your Debtors Under Control?

In difficult times, payment delays are common, and managing how quickly and consistently you get paid is crucial for staying afloat. Ensuring that invoices are paid promptly and keeping debtors under control can make the difference between success and failure, or even survival, during these challenging economic periods.

A proactive approach involves both preventive measures and effective recovery processes:

1. Robust Terms of Trade: Ensuring your terms of trade protect your business.
2. Efficient Debt Recovery: Implementing proactive debt recovery processes in case of default.

Terms of Trade

Core Legal has extensive experience assisting clients in preparing fit-for-purpose terms of trade. Key protections often include:

– Personal Guarantees: Directors of customer companies accepting personal liability for outstanding amounts.

– PPSA Registration: Providing a general security over customer company assets in case of default.

– Caveats Over Property: Positioning the creditor similarly to a mortgagee in case of default.

– Default Provisions: Allowing for interest on outstanding accounts and responsibility for legal costs and disbursements.

The suitable terms of trade depend on the industry and client profile. We offer initial advice and recommendations at no charge, and many clients find that new or revised terms of trade can be implemented efficiently and economically.

Debt Recovery

Core Legal is a leading provider of high-volume debt recovery services in New Zealand, serving a range of clients from large companies to small businesses. Our straightforward approach involves:

– Demand Letters: Sending a modest-cost letter of demand to defaulting customers, often resulting in payment.

– Legal Action: If the debt remains unpaid, we recommend District Court action for individuals or statutory demands for companies.

Pursuing even modest debts (over $1,000) can be commercially viable, with significant portions of costs recoverable upon successful outcomes. In some cases, obtaining a judgment and commencing enforcement proceedings, including bankruptcy action, may be necessary.

Get Ahead Early

In the current economic climate, early action is crucial for the best chance of recovery, especially when customers face financial difficulties. We are happy to provide strategic advice and recommend the best course of action at no charge, ensuring our clients have the best prospects for full recovery.

If you need assistance with debtor management or debt recovery, contact us for expert advice and support. Our team is here to help you navigate these challenging times effectively. https://www.corelegal.co.nz