Dealing with outstanding debtors

If you're a small to medium-sized enterprise, you'll know that managing cashflow is probably one of the more demanding aspects of your day-to-day operations. Outstanding debtors are a major contributor to cashflow woes and reeling them in can be both frustrating and time-consuming.

To assist in the process, the Australian Competition and Consumer Commission (ACCC) and Australian Securities and Investments Commission (ASiC) have joined forces and released a guide on debt collection.

The guide covers legislation that surrounds the process, including consumer protection, privacy and fair trading laws. It provides examples of real-life cases and how the relevant laws have been applied, and offers realistic advice on dealing and negotiating with debtors.

While it is not intended to replace professional advice, it is a useful starting point for anyone needing to understand rights and responsibilities when it comes to delinquent payments. It is available from the Australian Government business.gov.au website, which also contains helpful information on writing letters of demand and what to look for when engaging a debt collection service.