EC Credit Control Otago/Southland

23/08/2024

Who bears the cost?

It’ll be interesting to see how this story from the front page of The Press today plays out over the next wee while. This is not a piece of kit that you can put back into the warehouse and, expect to use on the next job to recover your costs!

It is exactly the type of situation in which Terms of Trade become important in determining your rights as a business. In fact, it mirrors, albeit on a totally different scale, a situation I dealt with, with one of my clients recently. They rang me for help when a client cancelled a job for which he had ordered $8000 of custom-made windows. At that point he didn’t have any Terms but, fortunately, the windows hadn’t gone into production and could be cancelled. For a while though, it looked like my client was going to be out of pocket for that $8K. Potentially a huge hit for his new business.

Needless to say, he now has Comprehensive Terms of Trade and is feeling much more secure quoting on new jobs. Hopefully the contractor in this story is as fortunate.

The company managing the Christ Church Cathedral rebuild is sitting on specially-designed base isolators it will never use. Comment below.

19/08/2024

Secure your personal free Business Cashflow consultation. In your area soon -
Dunedin 26 and 27 August 2024
Central Otago 10,11,12 September 2024
Invercargill 25. 26 September 2024 http://www.eccreditcontrol.co.nz/locations/otago/
http://www.eccreditcontrol.co.nz/locations/southland/

EC Credit Control is a full service credit management agency that has helped over 80,000 businesses get paid for their hard work. As your locally based Support Specialist I'm only a phone call away.

16/08/2024

I've been attending the Civil Contractors NZ AGM and conference this week in Invercargill. Not only was it a great chance to network and hear some insightful speakers but I took the time to attend a workshop and learn more about the 3910 (2023) construction contracts and the changes introduced recently. Many of my clients are using 3910 alongside our Terms of Trade documents so gaining a deeper understanding of how they support each other was valuable for me.

Another presentation dealt with what is coming up in the future, particularly in relation to work pipelines. The consensus is that better times are coming but, in the meantime, businesses need to focus on the things they can control so they are in good shape for when that pipeline does eventually arrive. On a focus list of 10 things, managing cash flow was in the first 5 and, of course, is something I can assist with.

Whatever your business this list seems apt and worth a closer look.

09/08/2024

Burt Munro knew how to go fast! He also knew it was all the 1% improvements that would get him there. What are you going to do next week that will make your business go faster?

I’m off to Gore and my old home town of Invercargill and will be sharing my knowledge with local businesses on how to be paid sooner and avoid those frustrating (and expensive) delays to your cash flow.

I’ll also be spending some time at the Civil Contractors NZ annual conference to broaden my knowledge of the industry including best practice for contract management and use of 3910:2023 contracts.

Feel free to give me a call if you, or someone you know, would like some tips on having a faster business.

08/08/2024

The best commentary I've seen recently on the state of the economy.

Call 0800 863 293 To Chat W/ DuncanGet in touch with me - [email protected] and join us on the socials.Website: https://www.rova.nz/home/podcasts/duncan-garner-...

07/08/2024

Is that green shoots appearing?

The latest Centrix data suggests overall arrear volumes have eased
over June, with the number of people behind on their
payments falling to 465,000, down 9,000 monthon-month. While they remain up 9% year-on-year,
consumer arrears are not materially deteriorating,
with only marginal increases and decreases noted
from month to month.

https://www.centrix.co.nz/wp-content/uploads/2024/08/Centrix-Credit-Indicator-Report_July-2024_Final_.pdf

04/08/2024

Cash flow is the life blood of any business. When it slows down, like in a person, it causes stress, both financial and to you as a business owner and manager. Don't wait for it to happen before taking steps to prevent it occurring. Here are three things you can do right now.

New Zealand is officially in a recession, what does that mean and why should you care? Find out about protecting your cash in a recession

02/08/2024

How to future proof your business, protect your cash flow and provide security to your family.

One of the things I love about my role with EC Credit Control is the people I meet and get to work with. Some clients come to me after trouble strikes and they need help to get paid for work they’ve completed, and that’s definitely important and, has its rewards. However, for me, it’s the businesses that are pro-actively looking to invest in their future success and come to me to help them achieve their dream that I really enjoy the most.

Recently I’ve been working with Che and Tracy from Bang Bang Building in Invercargill to do just that. I’ve known both Che and Tracy for years through my hockey connections and have watched them set up and grow their business, start a family and juggle to find the right balance between the two. To meet Che, you’re immediately taken by his quietly spoken demeanour and obvious passion to give his clients, and his kids, the absolute best he can. And from personal experience, I know his attention to detail and craftsmanship is top notch every time.

After a discussion over a beer and a bit of fishing at New Year, I sat down with Tracy and Che in the early part of the year to review their cash flow protection and debtor management processes. It became apparent that they had a gap in their client engagement and on-boarding that potentially left them at risk if payment issues were to arise. Having clarity about the rights and responsibilities of both parties is essential to achieving good cash flow and preventing disputes over invoices arising, and this needs to occur right from the outset of the relationship.

After 11 years in business, Che is also looking to grow his business and do more new build architectural home construction, and with bigger jobs comes greater risk. Having comprehensive and robust contracts in place from the beginning helps to minimise and mitigate this risk.

The outcome of our meeting was that Bang Bang Building adopted EC Credit Control Comprehensive Terms of Trade. These were customised to suit Che’s way of doing business, and I worked with him to establish some simple and easy to use processes for engaging with his clients in a professional and straight forward manner. The last thing a busy tradie needs is more admin but, having the right processes actually saves time and improves the quality of the relationships.


www.bangbangbuilding.co.nz