Business Owner Shares Hard-Learned Lesson After Builder's Collapse

A business owner, Adam Hall, recently shared his experience of losing AUD 100,000 when a builder he worked with went bankrupt. Hall explained that the loss was not sudden but accumulated due to ignoring 'red flags,' such as consistent late payments from the builder. Despite the warning signs, his company continued working for them, partly due to a lighter project pipeline at the time. The incident, which occurred around 2021, was a significant blow to his already struggling business. Hall considered legal action, but the builder's company eventually went into liquidation with AUD 300,000 in assets against AUD 11 million in debt to the Australian Taxation Office, making recovery impossible. This experience led Hall to implement new proactive strategies, including stopping work immediately if payments are missed, establishing robust systems and processes, and utilizing trade credit insurance to vet builders and receive notifications about their payment habits. He emphasized the importance of having a strong pipeline to avoid being reliant on problematic clients.

Mail Online

25 days ago

Aussie construction industry exposed after builder pulls dodgy act

Adam Hall revealed it wasn't the first time it had happened to him.