What can you do when your customer's liquidator comes knocking?
With many businesses experiencing more difficult economic times in recent years, it is very common for companies to extend more flexible credit terms and payment arrangements to their clients and customers. As a creditor, it is important you understand the potential implications of this, especially if your customer is placed in liquidation - even if it's six months after you receive payment!
After basking in the knowledge that your credit team has efficiently recovered monies from your delinquent customer, the last thing you want to receive is an Unfair Preference Payment Claim from their liquidator directing you to pay back the money you have already banked. In fact, it seems downright unfair!
However, all is not lost. The key to successfully fending off an Unfair Preference Claim lies in understanding:
- what constitutes an Unfair Preference
- what elements does the liquidator needs to prove
- what defences are available to you
- documents will you need to have to fend off the claimwhat kind of information and
Having this knowledge could make the difference between having to pay back that hard earned money or keeping it. Add into the mix the provisions of the Personal Property Security Act 2009 and whether this adds to your possible defences to an Unfair Preference Claim.
Join us in this practical seminar where we will take you through the process from both the Liquidator's perspective and your perspective as a creditor and provide you with some practical tips to avoid being caught by the Unfair Preference claim provisions.
Places will be limited so book early to avoid disappointment.