Community Businesses

On 9th July 2005 The Sydney Morning Herald published a disturbing article about growing household debt in Australia. Quoting from recently published reports by Deutsche Bank, Matt Wade, author of the article, observed:

"The level of Australian household debt has soared to 160 per cent of disposable income, having doubled in the past decade. This means the debt burden on Australian families is higher than in the US, Canada, Japan and New Zealand and similar to Britain."

Unfortunately many community-based organizations must bear the brunt of day-to-day impact of this situation. People in businesses that serve the community are typically caring individuals, seeking to help the people with whom they deal. Pressure from a growing debt burden leads their customers to take advantage of them - often inadvertently, but taking advantage nevertheless.

Child Care Centres, Schools and training organizations are typical examples of businesses seeking to deliver meaningful and supportive services to their customers and clients. The last thing on their mind is the thought that the people they are helping will take advantage of them - and the last thing they want is to be seen by these customers and clients as being uncaring.

As a consequence, monies owing to the business can typically grow well beyond what is fair and reasonable. In many cases this debt is not pursued because of fear that recovery action will have negative consequences on the business.

FNH Community Services Department provides a solution. Our experienced advisors can work with you to achieve recoveries in a manner that is tailored to your circumstances - and recognizes that a "heavy handed" approach will never be appropriate for your needs.

FNH also purchases debts from community services organizations. As part of the debt purchase agreement, FNH will undertake to pursue only collection avenues established as part of the purchase agreement - avenues designed to eliminate or minimize any negative perception that could arise if the community organization itself was to proceed with collection.

Click here to submit your inquiry or call (02) 9954 1455 for a confidential discussion.

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