Lawpac is comprised of two parts. The first, is our mercantile recoveries, at competitive, fixed fees, with no commission charged on recovered amounts. The second, focuses on the supply of credit management documents, with the aim to protect your business against debtors into the future.
Lawpac’s annual fee of $165 (incl GST), will provide you with fixed fees for debt collection services, such as Letters of Demand, as per our Schedule of Fees (below), up until such time that a matter becomes defended.
By instructing a lawyer, you’re letting your debtor know that you are serious, and no further indulgences will be given. Your debtor will receive a Letter of Demand, on a solicitor’s letterhead, within 24 hours of receiving your instruction. If the debt has not been paid within the allocated timeframe specified on the Letter of Demand, we can pursue the matter further, on your instructions, by commencing Court proceedings. A Court judgment in your favour, will allow us to use a range of enforcement procedures, for example, a Property Seizure and Sale Order, to recover the outstanding money.
Only lawyers can issue court process, so by engaging a lawyer from the beginning, you’ve already avoided the double handling of your matter, if a mercantile agent is used, and the matter proceeds to court. We won’t charge a commission on any recovered amounts, and where permissible, you are able to be reimbursed some of your legal costs from the defendants, at the recoverable rates set out under the rules of the Court. In the General Division of the Magistrates Court, if a debt is over $10,000, you are normally able to recover such of your Lawyer’s costs, as permitted by the Court scale, if you are successful with your claim.
AGREED SCHEDULE OF FEES*
- Half Page
- Full Page
We don’t just recover your debts. In the process, we’ll look for ways that you can strengthen your credit management system to avoid problems arising in the future.
When was the last time you reviewed your Terms of Trade? A thorough Terms of Trade Agreement will ensure that you and your clients are on the same page, ideally minimising the chance of a dispute. There are many key terms we may suggest you include, in the interest of your credit management, such as:
- Interest Rate Giving you the ability to impose a charge when payment is not received by the due date.
- Retention of Title
Where you supply goods, this states that the ownership of the goods does not pass until you receive payment. This means that if you do not receive payment, you may be able to enter the premises and take back the goods.
- Personal Property Securities Act (PPSA) 2009
Where you supply goods, this allows you to register a security interest over the goods, which gives you a priority over other creditors.
- Caveat Registration
Giving you the right to register a caveat over any land that may be owned by your client, for any money that is due to you.
- Directors Guarantees
Holding the directors of a company personally liable, in situations where the company is unable to pay their debts.
Our team is also happy to assist with credit reports and applications for your new and existing debtors. While a strong Terms of Trade can assist you in recovering unpaid debts, investigating the financial history of your potential clients, can help you to determine the payment options you’re willing to offer them. For example, while you may offer a 30 day credit to a client with a clean credit history, you may only offer low-risk, upfront payment, to a client with a poor payment history.