Australian Credit Practice

When developing a Credit application form there are some things to consider. The application form must be clear and simple to determine who the debtor is. A Business will want to make sure that their own interests are protected when they deal with other businesses. Who can the provider of the credit pursue if monies are not paid? One of many important matters when preparing a application form is weather the creditor is operating under a trading name. Failing to determine this may make the recovery of debts difficult.

It is important to determine what type of entity a business is dealing with. Is the business a Sole trader, Partnerships, Pty. Ltd. Companies and so on. What are the assets of the owners or Directors and are these assets under any obligations such as Liens or Caveats. A title search at the Titles office can determine what conditions apply to these properties.

A very good starting point when research a potential debtor is the ASIC web site. Below are some web sites to obtain useful information.

Identical Names Check

Check the details of a company name.

http://www.search.asic.gov.au/gns001.html

Company Alert Profile Maintenance

This link allows a creditor to set up and manage company alerts.

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