David’s business was growing rapidly. David wanted to put in place a structure that protected his business and assets. He also needed new terms and conditions for customers, especially to cater for the slow payers. The existing terms and conditions were patched together and simply didn’t enable a smooth and clear debt collection.
We visited David’s business and discussed in detail his concerns, problems, plans and future goals. We worked together with his accountant to put in place a company and trust structure that would protect his interests and business. We also drafted intercompany agreements to create effective legal protections and to achieve the needs identified by the accountant for tax purposes.
We also drafted terms and conditions that could be used for different parts of the business and different customer types. Importantly, we also provided a comprehensive credit application that required the relevant customers to provide security, personal guarantees, and pay interest. If there is a breach or slow payer in the future, David can take immediate debt recovery action (at the client’s cost). We also made suggestions to the quote documents and customer acquisition process.
David now feels confident in moving forward knowing that he has the right company structure in place. This will provide the foundation for his growth and expansion. David also benefits from knowing that he can delegate the customer acquisition process to employees based on the strong legal positions built into the terms and conditions and credit application documents.