Luke from EC Credit Control
For Tradie Credit Collections and Terms of Trade, speak to the experts!
We join Tradebusters Academy expert, Luke Carroll from EC Credit Control to learn more about how a trades business can protect themselves against non paying customers. We discovered that protection is really all in the T&C’s.
Tell us about EC Credit Control and how they can help tradies?
EC Credit Control commenced in 1989 and are considered an expert in debt recovery. To date we have over 60,000 clients across Australasia and a large portion of these are tradies. We shifted our focus to tradies even further 15 years ago when the rules (legislation) changed, making it easier for debtors to avoid paying.
Many tradies were caught out by the changes and not aware of their rights. So EC began to focus on helping tradies protect their business and cash flow, making it easier to get paid when they finished a job.
We have now gone a step further. As well as helping recover money through debt recovery and drafting watertight contracts (Terms of Trade), we also provide assistance in other areas such as compliance with legislation. Many tradies need to comply with Fair Trading requirements, under the Home Building Act (1989), which can be a red tape minefield. Eg. You may require Domestic Building Contracts to comply with Fair Trading regulations or need advice on what size deposit you can legally ask for on domestic building work.
In summary EC has evolved to assist you in a number of areas, all under the motto of helping you get paid.
How can EC help a trades business reduce it’s risk of not getting paid by customers?
Our overall aim is to ensure tradies are operating with a best practice credit management policy to ensure they are in the best possible position to get paid. EC are experts in this field. This covers; comprehensive and customised Terms and Conditions of Trade documentation, Debt Collection services, Credit Checking facilities where necessary and assistance with PPS Registrations (www.ppsr.gov.au) to make you a secured creditor.
This also allows our clients to portray a sense of professionalism to their clients in comparison to their competition which can help them win business along with improving their cash flow.
Because we take this more holistic approach to credit management in comparison to a number of other debt collection agencies, our Area Managers are seen as experts and educators in the areas mentioned above. As a result referrals are our largest source of business.
What are your top 3 tips for a tradie in business?
They would have to be:
- Get a strong, correctly worded contract in place before commencing any job and get both parties to sign.
- Always get variations or additional work detailed and agreed to in writing by both parties. Variations are the main source of bad debts in the construction industry.
- Act early and have a robust collection process in place so you don’t let a bad debt drag out for too long. Tradies who are proactive and escalate the collection of an outstanding debt to a collection agency quickly are the ones who get paid. If you procrastinate be prepared to risk not getting paid.
Tell us why you think Tradebusters Academy helps tradies succeed in business?
It acts as a filter. Tradies can feel confident in knowing the experts they turn to have helped tradies in particular many times over. In debt collection who would you want? When it comes to helping you get your money the answer is always the person with experience who knows your industry and how to get results.
The same goes for drafting and implementing contracts (Terms and Conditions of Trade) to protect the cash flow of a business – people come to us for help because after so many years working with the construction industry we know exactly what you need. This doesn’t happen overnight, it comes from years and years of experience and continual research and refinement.
They say you can become an expert in any field by dedicating 10,000 hours to it. Collectively EC has achieved this many times over helping tradies improve their chances of getting paid.
Finally, what else should one consider in selecting the right credit collections agency to support them?
When looking to get a collection agency involved it is important to look at their motives. Are they owned by a legal firm making their collection department simply a funnel to feed their legal department? If this is the case they may be preaching what can be expensive and drawn out legal action not debt recovery. The result can be a considerable amount of money you pay for the process of trying to get your money back, regardless of the outcome.
Look for an established and licenced agency who charge on a no collection-no commission basis. This ensures they have the right motivation.
EC focus on debt recovery not legal action, and have worked on a no collection-no commission basis for 25 years. We also believe prevention is better than a cure, hence our approach to credit management to ensure you are in the best possible position to get paid.
Check out Luke Carroll’s latest tips for homeowners as featured in Smart Property Magazine. This is a great reminder for tradies aswell.
Check out what others are saying about EC Credit Control!
TB Promo Offer
Mention Tradebusters when you call to receive a free appraisal of your current Terms and Conditions of Trade documentation and Credit Management policies.
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