Credit Contracts and Debt Collection
We have specialised in contract preparation and contract disputes for 25 years.
We have prepared loan agreements and security documentation and handled disputes for banks, companies and businesses of all sizes.
Our Proven Experience
For 25 years we have acted for businesses and companies of all sizes, builders, sub-contractors and property owners, as well as for financial institutions including the Bank of Melbourne, United Credit Union now Beyond Bank Australia, National Australia Bank, Bank of Queensland and large National Mortgage Insurer MGICA. However, this work, whilst important, has certainly not been more important to us than helping businesses and people having problems with outstanding debts.
Our practice is located outside of the Perth CBD and because of this our hourly rates and fixed prices for commercial work and for litigation are 20% lower than the standard rates charged by most Perth law firms. Our rates are extremely competitive compared to the rates charged by other commercial law firms.
We provide legal advice on loan agreements and we can prepare loan agreements for individuals and businesses of all sizes as well as guarantees and caveats.
We include clauses which protect:
- Re-payment by including a caveat clause that allows you to lodge a caveat over property to secure re-payment.
- The right to recover legal costs incurred.
- Provide advice in relation to risk management and enforceability of loan documentation.
- Have you confirmed the identity of the debtor by requesting proof from an individual or have you conducted a company and business name search? (we can do these searches for you)
- Have you conducted a credit check on the debtor and, if applicable, its directors or proprietors or promoters?
- If you want to charge interest, have you specified precisely the rate to be charged, the method of calculation and the date from which interest will run?
- If you are selling goods, have you made clear precisely when title to the goods passes to the purchaser and have you included a Romalpa or retention of title clause? For those not familiar with Romalpa clauses, it is a term in a contract that states that the title or ownership to the goods do not pass until payment is received.
- If the debtor is a company, or if you have some doubts about ability to pay, you should get personal guarantees from third parties?
- Do you have a well drafted form of guarantee?
Debt Recovery / Debt Collection
You should have in your contract a cost recoverable clause that will allow you to claim most of your legal fees and other costs of recovery from the debtor. You should have the debtor's agreement to your terms before you perform your part of the transaction.
It may not be enough to rely on your terms of trading on the reverse of your invoice.
We give legal advice on disputes over all types of contracts as well as debt recovery under loan agreements and we act for parties pursuing debts under loan agreements.