With changes in relation to Personal Property Securities Register (PPSR) and some issues raised by members in relation to terms and conditions of trade, FTMA Australia in conjunction with our Silver Sponsors AB Philips have had lawyers at AMPAC renew our Commercial Credit Application Terms and Conditions of Trade.

 Jaqi Rota is AB Phillips Trade Credit expert and Jaqi recognised we needed to strengthen wording in the document to ensure fabricators are fully covered.  Over the years we have had many builders test these terms and conditions and we are pleased that the document provided to members stood firm. 

AMPAC have updated the terms and conditions with a specific revision of the PPSR Clause.  They have also:

1.   Expanded the Application to try to capture any trustee’s details (page 1). People are increasingly using a trust structure (particularly smaller traders) which may not be immediately apparent from their documentation. As you can’t sue a trust, knowing the identity of the trustee company or an individual behind the trading trust is crucial. If the credit application does not contain that information, it is very difficult to find it out as the identity of trustees are not available on any register;

2.   Since Trustees can easily be changed, added a requirement that the Customer update the member of such a change (14.10);

3.   Expanded the definition of “Goods” to include those supplied now or in the future;

4.   Added a stronger recommendation that the Customer obtains legal advice rather than ‘if they have any queries’;

5.   I have amended the charging clause at 13(4) whereby the Customer charges their land and a caveat can be lodged.

In terms of implementing the new document, FTMA Members should amend their individual copy to reflect their legal entity, and commence using the new document asap for all new account applications.

The new Commercial Credit Application Terms and Conditions of Trade has been uploaded to the Members Only section of FTMA News and we encourage members to download this and implement in to their business at their earliest convenience. 

If members have any enquiries regarding the new document, please don’t hesitate to contact us and our experts at AB Phillips are also available to assist.