Economists quickly scaled back their growth predictions after official figures yesterday showed the current account deficit had widened to a worse-than-expected level.

Most economists now believe the economy contracted by 1.1 per cent in the March quarter, almost equalling the downturn seen during the recession in March 1991.

There was a sharp fall in exports, with mining shipments, which make up around half of all exports, plunging nearly $6 billion.

Paul Brennan from CitiGroup says it will eclipse the fall seen during the financial crisis in 2008.

“This time round, the economy has lost some of that momentum as we came out of that global financial crisis when both the federal reserve and the reserve bank were stimulating the economy,” he said.

Mr Brennan says the Queensland floods are partly to blame but he believes the economy will start to grow again by the end of the year.

“On our calculations, the economy was probably flat in the March quarter if we adjust for the impact of the floods, so it still seems like the economy was disappointingly weak in the March quarter,” he said.

Mr Brennan says the significant hit to coal and metal exports from the natural disasters is not the only drag on growth.

“Consumer spending is fairly weak, there’s also been less contribution from the companies building inventories than what we saw in the previous quarter so that means inventories actually detract from GDP and then exports more broadly fell in the quarter,” he said.

Don’t accept the notion to write off debts without a fight! A simple demand letter brings 87% of debts into order. In saying this, don’t be confused if you have already sent your own demand to a non-payer to no avail.

The impact of receiving a letter from a collection agency or a Solicitor can be extremely effective and give you results without even considering taking the matter to the Courts.

Get 2 Demands for the price of 1!!

MEET THE MANAGER…..
STEPHEN STAFFORD – VIC

To be comfortable about doing business with a supplier means more than just knowing about the product. We recognise the comfort in knowing more about the person in charge of bringing the services to your door. Why would anyone jump at the chance to engage a collection agency without knowing what they are all about?

Stephen Stafford has been a part of the KPR growth right from the very beginning and his experiences brings a local understanding of the Victorian market. A personal touch means just words these days but Steve can provide that one thing that others only talk about.

Commencing employment for WJ Petersons in 1989 as an Account Manager, Steve quickly learnt the value of knowing businesses would prefer to concentrate on sales and turnover than following up on non-payers. His honest opinions and frank advice saw many companies turn from being in the red, to enjoying a managed cash flow without compromising the budget.

An early respect for his clients needs saw Steve grow within the company to eventually become the man to speak to for collection issues. Steve and his team take the responsibility of dealing with your overdue accounts but also provide sound credit advice to help you manage risk.

Find out how Steve can get your invoices paid. Send your email to info@kempspetersons.com.au.

MEMBERS OF THE I.M.A.
KPR has recently become a proud member of the Institute of Mercantile Agents. The membership is part of the drive for KPR to be a true and trusted leader in the Australian debt collection and receivables management industries.

Credit Managers and the company they work for need security and confidence when choosing a supporting service such as collections. The relationship between KPR and our clients is not one that is taken lightly. Many of our clients have been with us for many years and know the service standards that we provide.

For those who have never used KPR, our membership with regulatory bodies such as the IMA shows our commitment to providing strength and longevity.

To learn more about the IMA, visit www.imal.com.au

GREAT NEWS
SECURITIES GET STREAMLINED
Soon Australian financiers and businesses will be able to gain security over a broad range of assets with the introduction of a new nationally based register.

The new Personal Property Securities Register (PPSR) will replace around 70 state and territory based registers including ASICs Register of Charges, REVs, Instrument Act registers and the Security Interests in Goods Act providing a central mechanism for registering securities. The PPSR streamlines and enhances securities registration resulting in the potential for sharper credit risk management and reduced operating costs.

The new register will make it easier for a range of businesses to formalise their interest in assets – a critical step in ensuring priority in the event of customer insolvency. Previously a financier for example may have no way of formalising an interest in securities in some states while other regions demanded paper based processes. The PPSR ensures a broad range of security interests can be lodged and searched for in one place streamlining credit risk management, said Adam Champion, Head of product management, Veda Advantage.

Property security interests covered in the PPSR include:

* Motor vehicles * Household goods
* Aircraft * Business inventories
* Machinery * Intellectual property
* Office furniture * Company shares
* Currency * Patent
* Artworks * Copyright
* Stock-in-trade * Trademark
* Crops and livestock * Chattel Paper

For More information go to www.vedaadvantage.com

KPR CONNECT
We all know that we are way too busy to read everything that is sent to us by email or even by post. To our disadvantage, we may be missing out on the one thing that may make our working life a whole lot easier. Let’s face it, we have a job to do and that is our focus, reading every page on a website or email becomes an unnecessary chore.

KPR Connect gives our clients the freedom they need by having updates, reports, payment advices etc, ready to go with the press of a button. Make life easy by having access to information when you need it.

Not to bore you with the details, KPR Connect is like sitting with your Account Manager. Take control of what action is being taken to recover your outstanding debts, when you need it, when you want it and without even picking up the phone.

For more information on KPR Connect call 1800 632 939.
ACCESS YOUR FILES ONLINE!

HOW TO COLLECT
The collection process is extremely involved and each case is considered individual. Full time, dedicated experience in collecting unpaid accounts naturally is accompanied by the knowledge of what action works best in a wide range of circumstances. From this we are able to come up with a simple breakdown to show our clients how the process comes together.

Step 1 – Demands for payment are sent by the creditor and/or send KPR Connect demand letter.

Step 2 – No response or resolution, send KPR Letter of Demand.

Step 3 – Follow up with Solicitor’s Letter of Demand to increase seriousness and urgency.

Step 4 – Commence legal action, in the form of a Court Summons/Claim. Action is only taken once instructions have been received from you. Recommendations by your Account Manager will indicated if a matter is collectible, considering cost and possible outcomes.

Step 5 – Obtain Judgment against the debtor to secure further proceedings. Upon registration of the Judgment, the Court lists the defendant with a Credit Reporting Agency. This listing remains for 12 years.

Each additional proceeding is assessed and discussed with you. KPR do not proceed without our client’s instructions.

Have a question? Contact us on 1800 632 939.

NEW BANKRUPTCY LAW
The Labour government has amended the bankruptcy laws under a legislation passed by the Senate. According to the Federal Government, there has been an 11 per cent increase in personal bankruptcies from the last financial year.

At a time when a growing number of Australians get further into strife through consumer debt, bankruptcy laws have been raised from the minimum amount on which a creditor can file for bankruptcy from $2000 to $5000.

Originally the amount was $10,000 but the Government successfully moved to reduce the figure.
The legislation also aims to ensure the value of bankrupt estates are not unnecessarily diminished by fees charged for their administration.

Labours parliamentary secretary, Ursula Stephens said that it will be able to provide those with large amounts of debt the opportunity to seek advice first and consider all options before contemplating to file for bankruptcy.

Past experiences in Insurance Debt Recovery, Personal Injury Law, Criminal Law, and extensive experience in Litigation makes her a perfect role model for women in business.

KPR STRESS DOWN DAY 2010
On July 23rd 2010, KPR participated in the National Lifeline Stress Down day. Lifeline conducted this charity even as stress is a huge issue in Australia and we know that prolonged stress can lead to anxiety, depression and sadly for some, thoughts of suicide.

This is why KPR joined the charity event to make a difference in the community by all staff wearing pyjama’s and slippers to work for one day. Many of us don’t realise the full extent of the work performed by Lifeline within the community and this is just one way we can all get involved.

KPR set a target to raise $400 towards this worthy cause. KPR exceeded our target and raise a total of $1073.90. Here are a couple of photos of the day in full swing. Who would have thought you could actually wear your PJ’s to work

ENFORCEMENT HEARINGS IN QUEENSLAND
Legislative Changes – Effective 1st July 2010

As of 1 July 2010 there were amendments passed through the court in respect to Enforcement Hearing Summons.

The changes to The Uniform Civil Procedure Rules 1999 (UCPR) are as follows : -

“Practitioners and self-represented litigants should note that it is now a prerequisite to request a statement of financial position from enforcement debtors, prior to seeking a date for an enforcement hearing. An affidavit about this request and its outcome must be filed with the application for an enforcement hearing. The debtor can be given a second opportunity (if required) to provide a statement of financial position as part of the enforcement hearing summons. “

This means that KPR or its legal representatives must forward a Form 71 Statement of Financial Position to the Defendant or Director of the Defendant if the debtor is a company and allow them 14 clear days (after postage of 3 days) to complete and return the form on their own accord. If they fail to do so KPR or its legal representatives can then apply to the Court for an Enforcement Hearing date to be set.

This amendment has been passed through the courts to ensure that defendants bring the relevant documentation requested in the form to court with them if a hearing date is necessary, in turn this will result in less adjournments due to documents not being produced by the Defendants. Further if the Defendants continue to not provide documents in court they can be tried for contempt of court, this also applies if a debtor fails to attend the hearing.

This amendment is beneficial to both clients and the courts, as it minimises adjournments and in turn minimises costs for the clients in agents fees for attending at adjournment and the courts valuable time in continually having to adjourn matter.

For more information, we welcome your call on (07) 5582 6370.

AICM NATIONAL CONFERENCE
13TH – 15TH October 2010

KPR will be exhibiting at this years Australian Institute of Credit Management National Conference to be held at the Marriott Resort, Surfers Paradise QLD. The Conference is the largest, most prestigious event for credit professionals and provides a perfect opportunity for research and professional development.

Although there is an impressive line up of topics being presented by industry leaders, businesses of all sizes will certainly find great benefit from a simple mooch around the exhibitors stands to gather valuable information or to just meet like minded individuals.

KPR invite all clients and interested parties to come along for a chat to learn more about improving their cash flow. After all, your success is our business! Opening times are as follows: -

Wednesday 13th Oct – 11am – 5pm
Thursday 14th Oct – 8am – 5pm
Friday 15th Oct – 8am – 2pm

WHAT’S ON IN VIC
For our Victorian and Tasmanian clients, KPR is proud to be a Naming Day sponsor of the AICM Victorian / Tasmanian Division Golf Day being held on the 18th of February 2011 at the picturesque Southern Golf Club in Melbourne. This looks certain to be a great day at a world class facility. For more details on the day, please logon to the AICM website – www.aicm.com.au

KPR – ISO COMPLIANT
“NSW and Victoria offices recently were awarded their ISO Compliance certificate for the third year in a row. This is particularly pleasing for both offices as it re-affirms our commitment to ensuring best practice procedures and processes, and confirms that our management system is solid and robust.

Next year will be an interesting and progressive one for all offices, we aim to ensure all 3 branches, NSW, VIC and QLD are ISO compliant. Tri-annual audits will be conducted for re-certification. This means that each process in KPR will be audited and tested to ensure we have maintained, yet again, our management system and our procedures and processes are as we have documented them.

To be awarded ISO compliance is no mean feat, with many pre-audits conducted prior to the official audit and a frantic couple of days! Our clients should feel even more confident knowing that KPR has well documented management systems, and procedures and processes that are proven to work.”

Michael Ball – NSW Operations Manager

Over the course of future newsletters, we intend to cover a vast range of subjects and issues that concern today’s businesses. Be it motivating your slow payers to settle within your payment terms to heavy litigation such as insolvency and bankruptcy, we will keep you abreast of current trends and changes to legislation.

We will also introduce our biggest asset to you, our valued team members, because without our good people we would not have much to offer. Yes, we have the important “stuff” like technology, infrastructure, tools of trade, IT support, etc but without good people to make it all work efficiently and effectively we would just have “stuff”.

KPR is committed to give value added service to its diverse clientele locally, Australia wide and internationally. We continually strive to improve our services and broaden our product range to accommodate the many varied industries we assist.

KPR is proud to operate a Quality Management System which complies with the requirements of ISO 9001 and have worked hard to continuously monitor and improve our processes for the benefit of our clientele and staff. Based on the Quality Management System concept, KPR is undertaking initiatives to enhance our client’s experience when conducting business with KPR. We will keep you updated as these enhancements come to fruition.

On a lighter note we are happy that the footy tipping competition has mustered a good following. Good Luck to all participants.

Until next time Keep Safe and Happy Cashflow.
Warm regards, Terry.

AICM Membership
KPR has recently become a corporate member of the Australian Institute of Credit Management (AICM). This regulatory body has been overseeing the world of Credit Management for many years and will be of great benefit to both KPR & its clients.

Regular updates relating to legislation, court changes, credit reporting and industry training are necessary to continue servicing even the smallest of organisations with credit solutions. With membership in NSW, QLD & VIC, issues such as economic trends and business technology will help us recognise your needs and adapt our services accordingly.

We are confident about the future with the AICM and excited we have been accepted as a corporate member.

QCAT replaces Minor Debt Claims Tribunal
Minor Civil Disputes are now issued through the Queensland Civil & Administrative Tribunal (QCAT) which commenced from 1st of December 2009.

QCATs aim is to provide accessible, cost effective and informal tribunal services for a wide range of matters affecting the community, including: discrimination cases, building and construction disputes, property agent and motor dealer disputes, disciplinary matters involving teachers, health practitioners, as well as landlords, tenants and retailers.

QCAT is intended to have a user friendly approach than the existing tribunal network. Parties with claims through QCAT will have to appear in person without legal representation, should the matter be defended. The tribunal will need to give specific consent if a party wants to be represented by a lawyer.

While the new system was marketed as a being a lot simpler, our experience so far is that perhaps the system may be proving more complicated for clients (Plaintiffs), and with more forms and tighter timeframes to comply with, it can result in a more costly system for the Plaintiff. Could QCAT be more trouble than its worth? Either way, it is our responsibility to provide our clients the best possible results.

Our recommendation to clients is to proceed with legal action in the Magistrates Court, as unless the debt owed is under $1,000.

Our Big Brother
The team at KPR feel extremely blessed. Many dont realise we are a part of a very large network of companies, all backed by a hugely successful national and international big brother, PICA.

Prudential Investment Company of Australia Pty Ltd. (PICA) is a national property and financial services company, focused mainly on the Property Services industry.

PICA was established over 50 years ago and has had many interests in a wide range of businesses, its core being the Body Corporate Services/Strata Management industry in which it is the market leader. Its other core business is debt recovery and receivables management with subsidiary companies such as, yours truly, Kemps Petersons.

The corporate nature of our organisation greatly benefits our clients by having access to a strong infrastructure including an experienced IT Department, Business Development Managers and Human Resources. The orginisation is committed to ongoing learning and developement training schemes that benefit it’s staff.

If you would like to read more about our big brother, go to

Changes That May Effect You
Amendments to the Bankruptcy Act 1966 are currently being seriously considered by the Federal Parliament to increase the minimum amount applicable for a bankruptcy from $2,000 to $10,000.

If passed, this will impact those who are carrying aged receivables under $10,000 and considering issuing bankruptcy proceedings on a debtor/s after a Judgment Order is obtained via the relevant Court. The amendment in it’s current form is currently being considered by the Senate. It is beleived that the Federal Oposition and two Independants would prefer to see the ceiling increase to $5,000.00 in prefence to $10,000. Once the Admendment to the Bankruptcy Act is passed through the Senate it would take effect once it is signed off by the Governor-General.

All KPR clients will be notified once the Admendment is passed giving full details and how this may on the effect future actions.

Making Your Life Easier
KPR have recently welcomed a new addition to the family of services offered to clients. Our newest arrival is Receivables Management. Not all business can justify the expense of dedicated accounts receivables then they struggle to find the time to do the books themselves. Often family or a spouse will pick up the slack and are rarely suitably qualified to do the best job possible to keep the business moving forward. This is where we can help.

Monthly invoicing is a necessary evil but there are easier ways to free up your time for more important matters like making money! A growing number of small to medium business are turning to an outside source for end of month procedures, monitoring and follow up. KPR are now offering a flat rate service to cover all aspects of monthly invoicing. By simple data transfer, end of month can be a welcomed task rather than a hindrance. For more information on the service, contact 1800 632 939.

Footy Tipping Competition
The 2010 footy season has already kicked off for the year and many have jumped on board to take a chance at winning the season prizes. The stakes are high this year with a full National comp for both NRL & AFL.

Some awesome prizes are on offer so dont forget to tip!

1st Prize Weekend for 2 including airfares, accommodation & transfers
2nd Prize – $300 Myer Voucher
3rd Prize Dinner for 2 including a Meal & Beverage package.

If you have missed out on joining in the fun this season, don’t despair, the competition is run annually and all KPR clients are invited to join.

Good Luck Tippers!

Contribute to our Newsletter!
If you have something of interest that you would like to submit for consideration, which is industry related and reflects a practice, development, new ideas or an opinion, then feel free to email us at enquiries@kpr.com.au
Submissions should be kept to a minimum and be sure to include your name and business details.

If you have a Question of interest that is industry related feel free to ask us! We’ll do our best to answer them and post them in our newsletter.

Have a great Easter and Thank You for staying updated with
The KPR Review.

D.I.Y. COLLECTION LETTERS
KPR Connect is an online debt recovery service offering do-it-yourself KPR Demand Letters. The service gives you access 24 hours, 7 days a week using a secure User ID and Password. Clients can access information on referred accounts, reports, account history, legal costs etc.

KPR’s unique online demand letter gives you the freedom to commence collections at your own convenience. The service is available to everyone and there is no obligation to pass the debt over to KPR for further follow up. At only $20 + GST per letter and free from commission there is little reason to not at least try to get your money back in your pocket! The letter prints with KPR letterhead but all queries are handled by you. A great way to give that extra push for payment with a very small outlay, perfect for small debts that may not seem worth pursuing!

Contact Mandy Wight on 1800 632 939 to get started!

HELPING QLD
It has been a tough year thus far for many across Australia who have dealt with raging fires, flooding, cyclones and earthquakes effecting our friends across the Pacific.
KPR decided to assist those in QLD flood effected areas. We were fortunate to have help from compassionate KPR clients, Robin Food Industries and Gold Coast Bakeries who provided boxes of snacks and cold drinks plus enough breadrolls to feed hundreds of hard working volunteers. We thank you for your empathy and generosity.
Body Corporate Services and KPR offices in NSW, VIC & QLD put together fund raising events to help staff members who had lost everything in the Brisbane flood. This meant our very own Michelle Grant, Business Development Manager, succumb to jelly and cream pies whilst dressed up as Wonderwoman. Fellow staff members showed great support for the cause and made sure there was no-one was left unscathed.

The QLD team from KPR also put together a weekend volunteer road trip to Kenmore in Brisbane for “Adopt A Park” day. Covered in stinking mud, the all-female entourage were extremely thankful when the Army lads turned up to lend a hand. Every house in the area, as far as the eye could see had extreme damage to their properties and their belongings were in muddied piles on the footpaths. An elderly resident offered the ladies the use of her working lavatory which was sadly the only structure left standing in her home that was once filled with a lifetime of memories. Our hearts go out to all those effected by natures nasty side.





NATIONAL TRADESMAN’S EXPO – MELBOURNE
KPR will be exhibiting at the National Trademan’s Expo in Melbourne, 13th – 15th May 2011 at the Melbourne Showgrounds.

To register for free tickets to the event, click on the link below.

http://www.ntx.com.au/mates-rates

The event is a perfect opportunity for businesses in the building and equipment industries to view new products and services that are available. Everything will be on display from trucks and machinery through to information services to improve your business.

KPR will be there to provide details on our collection and receivables services. There is something for everyone to make your job a whole lot easier. Because your success is our business, we want you to “Stress Less”.

Why not come along for a well-deserved massage from the ladies at the KPR stand!

For years, debt collection or recovery agencies have carried the heavy load of misinterpretation. Many business’ view such agencies as an unnecessary expense. Kemps Petersons Receivables (KPR) is hoping to bring new light to the stigma that is Debt Collection Services.

KPR recognises the need for a better service for the small and medium business of Australia. Receivables Management has become a standard offering from KPR following growing concerns, particularly during the global financial crisis period. As business naturally focus maximum energy on making money, often receivables take a back seat. Terry Kemp, General Manager of KPR, says that “Without the proper management and control of funds that are not coming through the door, business’ are taking tremendous risk on their future success”. “The implementation of Receivables Management means we can offer a full and secure service for those who need us most”.

Initial foundations dating back to 1974 with WJ Petersons in NSW/VIC and Kemps Collections Pty Ltd VIC 1961 eventually merged in 2007. The Prudential Investment Company of Australia (PICA) is the strength behind the future of KPR which recently acquired Macquarie Collections (QLD) in 2009 along with further acquisitions on the cards. “Strong corporate support is worth its weight in gold in our current climate and our clients can feel the difference”, says Terry. “Our company is built on trust from our clients and our referral rate is a sure testament to that”.

Credit/Trade Checks are also in high demand for KPR including our supplier partners such as Veda Advantage. Perhaps this is the black rain fallout from the GFC that we are experiencing with more organisations feeling the strain of past business decisions gone bad. Whether or not you believe Australia has felt the full effects of the crisis, that fact is, we may come out the other end a whole lot wiser and more prepared against rouge payers.

As the old saying goes, prevention is better than cure and who can argue? By allowing the experts in Receivables Management to provide sound advice, it can mean the difference between a degustation lunch with the Board on a Friday afternoon or snacking on a counter meal before that pressing meeting with the company Accountant and his annoying red pen. Ok, so maybe a little dramatic but the essentials are spot on. It’s difficult not to consider how many companies out there have fallen from grace due to the lack of management of their funds long before the onset of trouble.

Seldom do companies properly arm themselves with legally binding terms and conditions, credit applications or contracts. A Directors Guarantee could save your business or business associates from mountains of pain and suffering caused by debtors falling into administration/liquidation. Bottom line, if you are providing credit, you are putting yourself into unscaleable risk without the proper protection. There is no way to measure the extent of such damage and there is not always the surplus to re-build the ledger back to its original state.

Knowledge is the key and utilising the services of a collection agency can only benefit. No matter what the field, a collection agency is capable of saving business hundreds or even thousands of dollars when matter requires a heavier hand. Although it means spending a penny, why not outlay a little to gain a positive financial outcome? By achieving a Judgment through legal action can result in up to 5 years of bad credit rating to a debtor and a heads up for those looking to provide credit to them in the future. And so the circle turns where such action may save your business from potential loss.

Taking into account that collection cannot be successful 100% of the time, the question is often asked, why use a collection agency over a qualified lawyer? The fact is, KPR and most other collection agencies carry their own in house lawyers who are devoted to collection work without the distraction of other legal specialities. Demand letters, phone calls and follow up is part of KPR’s pre-legal process and not charged by the hour. The idea is to save our clients money rather than cost them the earth to get it back.

KPR are committed to the ever-changing needs of its clientele and refuse to remain stagnant in order to serve them better. The commitment extends to ensuring clients know their options when it comes time to get serious. Through KPR providing their clients with sufficient knowledge and an understanding of what can prevent the worst from occurring, business throughout Australia will spend more time making money rather than in the courtroom.