Tips to help recover payments
In SA all payments for grapes purchased in a year must be made by 30 September. The SA Wine Grapes Industry Act Ministerial Order requires a processor to pay interest on amounts outstanding after this date. This is a legal obligation, not an option. The interest rate is equivalent to the Commonwealth Bank overdraft rate (9.31% p.a. as of 19 August 2016) plus a premium of 1%, rising to a premium of 5% for debts remaining after 31 December. If you are having trouble getting paid, consider the following options:
- Send a ‘Letter of Demand’ that outlines in writing the amount owed, and the time frame for payment (e.g. 10 days). It is important that you sign and date the letter. Download example letter.
- Include a revised invoice showing the interest on the outstanding debt with a copy of the Ministerial Order
- Consider engaging a Solicitor to send the final demand letter – it tends to get a better response
- If there is no response, send another letter of demand outlining a final period for payment after which ‘winding up’ proceedings will commence.
- Consider taking the party to court or making an application to the courts for a ‘winding up’ order.
Creditor Watch
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- search for a business using its Name, ABN, ACN or Account Number
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- monitor a business to receive alerts when changes like adverse findings or payment defaults occur
A 15-day free trial is available so you can try it and see if it works for you.