What are an attendee's responsibilities in joining a trade bureau and attending meetings?
The attendees obligations and responsibilities when attending a meeting include:
(i) contributing to the meeting content and not just receiving information for their own use;
(ii) participate openly and honestly;
(iii) ensure complete confidentiality of the information gained; and to
(iv) commit to regular attendance at the meetings.
How does a trade bureau meeting work?
Prior to the meeting, each member of the group forwards a list of customers which they are seeking information to the group organiser. The organiser then complies a list of the customers which the members wish to discuss.
There are special rules to which the members must adhere to on what they can say and to what use they make of the information gained at the meeting.
The meeting is conducted as a round table discussion and is convened by an independent chairperson.Peter Kerlin, Trade Bureaux Australia Pty Ltd
How often are the meetings held?
Meetings are usually held quarterly, bi-monthly or monthly throughout the year, according to the participant's needs.Peter Kerlin, Trade Bureaux Australia Pty Ltd
What is a trade bureau?
A Trade Bureau is a meeting between representatives from a particular industry, for instance, from the hardware industry or the printing industry etc. Normally credit managers or their representatives from different businesses, discuss or disclose information about how their respective customers trade with their companies.
Joining a trade bureau is about minimising the risk of extending credit and should therefore, should be considered as part of a company’s risk management maintenance systems.Peter Kerlin, Trade Bureaux Australia Pty Ltd
What if the ABN I have been given is not listed anywhere?
Chances are the customer does not have an ABN and should not be given credit until the matter is cleared up.Faye Whiffen, Effective Credit Management
How can I identify the entity I am dealing with?
Free websites such as ASIC (Australian Securities and Investment Commission) and ABN Lookup can be searched for this information.Faye Whiffen, Effective Credit Management
When should credit be suspended?
When an account goes outside of the agreed trading terms or the supplier becomes aware of any factor which may cause the account to become a bad debt i.e. a winding up petition is advertised.Faye Whiffen, Effective Credit Management
Do I have to offer 30 day terms to all customers?
No, 7, 14 or 21 days can be offered. Cash in advance or on delivery is also an option.Faye Whiffen, Effective Credit Management
Do I have to offer credit to all customers?
No, credit is a privilege and not a right.Faye Whiffen, Effective Credit Management
Why should I get a personal guarantee from a company director?
If a person is not prepared to back their own management ability with their own assets why should any supplier of goods or services back them.Faye Whiffen, Effective Credit Management
How do debtors avoid paying you?
One way debtors' avoid paying they accounts is to raise false claims This often occurs in an industry such as the construction industry where a contractor or supplier is offered an attractive deal. The supplier then proceeds and subsequently invoices the client on completion. The client delays payment with various excuses and in some cases never pays. Resorting to legal action rarely works and is expensive to pursue.
Conferisk provides the resource to report and identify those debtor's which constantly raise false claims through our up to date fully investigated credit reports.Frank Duke, Conferisk
What is 'Supplier Hopping'?
'Supplier Hopping' is where a customer defaults with one supplier and then switch to another unsuspecting supplier. Skilled ‘Supplier Hoppers’ have worked out strategies for avoiding payment such as setting up phoenix companies.
Usually joining a trade bureau or obtaining a credit report where the business or the individual behind the business is identified, will identify the serial offender.
Conferisk provides the resource to report and identify 'Supplier Hoppers' and to obtain up to date fully investigated credit reports.Frank Duke , Conferisk
What is a credit sale?
Any sale which is made where payment has not been received at the point of sale or prior to the sale. Note that goods sold on consignment is a credit sale and unpaid cash on delivery invoices are a credit sale.Faye Wiffin, Effective Credit Management
What does the term DSO mean?
If you are a specialist supplier of financial risk management products and services, then you need to be listed in Credit Matters Better Business Club.Read More