- Bad Debtors
My list of businesses that have cost me money through bad debts.
Over the years that I have been running my business here in Perth, Western Australia, I have lost money from time to time, from companies that have run into financial trouble, or individuals that have not paid their bills. Unfortunately, there is no easy way to have such firm's credit rating reduced, nor any method to warn people of possible payment problems. Credit risk management is quite difficult for small firms like mine, as there is no easy, cost effective way to drag non-paying clients through the courts, making it often un-economical to pursue debts unless they are in the thousands. It also seems almost too easy for firms to close their doors once insolvent, and then re-open their doors the very next day, with receivers and managers appointed, and continue trading, often writing off millions of dollars in debt, then purchasing the business back off the Liquidator a short while later. More often than not, the creditors receive little of no money, as any left over funds get consumed by the Liquidator's fees (which are often massive), and secured creditors like the ATO (Australian Tax Office).
List of firms that have cost me money...
UPDATE - I have removed the names of the firms from this page, as I have been warned by an independent person that I could be a target for Slander and other Legal claims, and so I have substituted "XYZ" in place of the firm's names, whilst I evaluate the risk of such a legal case.
|XYZ1||Money outstanding from June 2001. Amount
owing $2500 approx.
Received from Liquidator $800 approx in 2003. Net loss was approx $1800.
Now trading as XYZ1 Constructions, and XYZ1 Maintenance.
|XYZ2||Money outstanding from Dec 2001. Amount
I have written off this debt.
XYZ2 is now trading under new management.
Aug 2004... I received an email from XYZ2, and my interpretation of this email is that they are not happy with their name being listed on this page, and that the "new XYZ1" is basically not related to the old firm, and hence should not be a credit risk, also warning me that this page could constitute slander (others could interpret that as a threat perhaps?) I do not see this page as slanderous, as I have clearly stated above that the firm is under new management, and hence is nothing to do with the old firm. I have removed their name as a precaution (see update above)
|XYZ3||Money outstanding from June 2002. Amount
Managing Director verbally stated that he would pay me the shortfall after Liquidator had finished.
Notified by Liquidator that I will be receiving $zero in Feb 2004.
On 21 Dec 2004, I received $500 from the MD, leaving a balance of $203.
I don't know if the remaining balance will be forthcoming, but if not, the loss is only a small amount.
XYZ3 continues to trade under the same name and MD.
These pages were last updated on 7 Jan 2005.