Chapter 16 - Debt recovery. In this chapter you should understand: the steps that should be taken before deciding to grant credit to an applicant, the steps used to encourage punctual payment of debts, the steps in the debt collection process,. | This is the prescribed textbook for your course. Available NOW at your campus bookstore! 16- Copyright © 2000 McGraw-Hill AustraliaCopyright 2009 McGraw-Hill Australia Pty Ltd PPTs t/a Fundamentals of Business Law 6e Debt Recovery Chapter 16 Introduction Goods and services are often provided to people who fail to pay for them. Those who owe money are called debtors. Those who are owed the money are their creditors. There are strategies that encourage repayment of debts and a debt collection process. 16- Copyright © 2000 McGraw-Hill AustraliaCopyright 2009 McGraw-Hill Australia Pty Ltd PPTs t/a Fundamentals of Business Law 6e The Decision to Grant Credit —Creditworthiness Check Proof of identity of applicant: Name. Address. Assets and liabilities. Employment status. If a company: Names of directors. Addresses of directors. Paid-up capital of company. Credit references. Confirm ownership of property. 16- Copyright © 2000 McGraw-Hill AustraliaCopyright 2009 McGraw-Hill Australia Pty Ltd PPTs t/a Fundamentals of Business Law 6e The Decision to Grant Credit —Credit Policy Credit policy should be notified to debtor, . When payment is due. Acceptable methods of payment. Interest charges for late payments. 16- Copyright © 2000 McGraw-Hill AustraliaCopyright 2009 McGraw-Hill Australia Pty Ltd PPTs t/a Fundamentals of Business Law 6e Incentives to Encourage Punctual Payment of Debts Discount for early payment. Credit charge for late payment. Notification of overdue accounts: account rendered sent. personal phone call. 16- Copyright © 2000 McGraw-Hill AustraliaCopyright 2009 McGraw-Hill Australia Pty Ltd PPTs t/a Fundamentals of Business Law 6e Steps in the Debt Collection Process ACCOUNT RENDERED (for unpaid account) LETTER OF DEMAND Details of debt Date debt incurred Debt Collection Specify date payment to be made Agency Specify legal proceedings will result PAYMENT Negotiation, LEGAL MADE Mediation or PROCEEDINGS Arbitration . | This is the prescribed textbook for your course. Available NOW at your campus bookstore! 16- Copyright © 2000 McGraw-Hill AustraliaCopyright 2009 McGraw-Hill Australia Pty Ltd PPTs t/a Fundamentals of Business Law 6e Debt Recovery Chapter 16 Introduction Goods and services are often provided to people who fail to pay for them. Those who owe money are called debtors. Those who are owed the money are their creditors. There are strategies that encourage repayment of debts and a debt collection process. 16- Copyright © 2000 McGraw-Hill AustraliaCopyright 2009 McGraw-Hill Australia Pty Ltd PPTs t/a Fundamentals of Business Law 6e The Decision to Grant Credit —Creditworthiness Check Proof of identity of applicant: Name. Address. Assets and liabilities. Employment status. If a company: Names of directors. Addresses of directors. Paid-up capital of company. Credit references. Confirm ownership of property. 16- Copyright © 2000 McGraw-Hill AustraliaCopyright 2009 .
