Risky Business?
New data released on 12 October 2020 by AFSA highlights the importance of protective mechanisms such as the PPSR for suppliers and understanding the application of same in a business environment. For that matter, anyone contemplating extending credit to a business.
This even includes business owners who, in these difficult times may have felt compelled to dip into their own, or another family member’s personal savings to inject into their business. Quite often credit is extended by suppliers and business owners without properly considering if it is the right decision and what protections might be available. Furthermore, understanding those protective measures and how to correctly implement same.
If there is an ounce of uncertainty, it is always prudent to seek independent advice from experienced professionals. Even if it as simple as seeking advice on the adequacy of existing trading terms, PPSR processes and other forms of protection including for example, personal guarantees, trade credit insurance etc. I have been involved in a number of cases over the years where a credit provider has been left empty handed and as a result of the simplest of oversights that were completely avoidable.