I was visiting a plumber who has been in business for a number of years. He has no Terms of Trade in place, so is therefore â€œdoing business on a handshakeâ€. I mentioned to him the importance of having correct Terms of Trade and especially that these need to be compliant with the new PPSA legislation.
He responded to me by saying that â€œhe's been in business for many years and he knows all his customersâ€. I said â€œso what, every person whose business has collapsed is known to people. They'll be someone's mum, dad, footy coach, neighbour, friend, aunt or uncle. The fact that you know them is irrelevant.
Without up-to-date Terms of Trade with the PPSA clause (in order to become a Secured or Ranked Creditor) and also the ability to be eligible for free Debt Collection, you won't have a leg to stand on if/when your client gets into troubleâ€.