A

Accounts Payable

Money owed by a company to its creditors.

 

Accounts Receivable

Money owed to a company by its debtors.

 

Adverse

Any negative event that has occurred in the bureau such as Default, ExAd, Court Action, Mercantile Agent Enquiry.

 

ASIC

Australian Securities and Investments Commission.

 

ABN
Australian Business Number. A unique 13 digit identifying number issued by the Australian Business Register.
 
ACN
Australian Company Number. A unique 9 digit identifying number ASIC issues to a company on registration under the Corporations Act 2001.

 

B

Bankrupt A person or organisation declared in law as unable to pay their debts.

 

C

Creditor A person or company to whom money is owing.

 

D

Debtor

A person or organisation that owes money.

 

Default

The failure to fulfil an obligation, especially to repay a loan or appear in a law court.

 

Director A natural person appointed as a director of a company who is then responsible for directing and managing the affairs of a company. Also includes a shadow director.

 

E

Equifax Score

An Equifax Score is a credit rating between 0-1200 that lenders can look at when deciding whether to accept an application for a loan or credit. Generally, the higher the score, the better you look to lenders.

 

External Administration

External administration includes administration, receivership and liquidation.

 

External Administrator A general term for an external person formally appointed to a company or its property. An external administrator is sometimes also referred to as an insolvency practitioner.

 

I

Indemnity

An agreement between the external administrator and a third party to cover the fees and other debts incurred by the external administrator. 

 

Insolvent Unable to pay all debts when they fall due for payment.

 

L

Legal Action

A civil or criminal judicial proceeding intended to resolve a legal dispute, claim, or accusation.

 

Liability

A legal obligation to pay a person.

 

Liquidation The orderly winding up of a company’s affairs. It involves realising the company’s assets, cessation or sale of its operations, distributing the proceeds of realisation among its creditors and distributing any surplus among its shareholders.

 

M

Mercantile Agent Enquiry A mercantile agent enquiry is an enquiry registered on a credit file by a mercantile agent who may have an interest in taking on a debt.

 

O

Officer (of a company) A director, secretary or external administrator (in most cases) of the company.

 

P

Payment Trends

Payment trends are a measurement of the days beyond terms that the organisation is taking to pay its invoices.

 

Phoenix Company A phoenix company is a commercial entity which has emerged from the collapse of another through insolvency.

 

R

Receivership An insolvency procedure where a receiver, or receiver and manager, is appointed over some or all of the company’s assets. 

 

S

Secured Creditor A creditor who has a security (e.g. charge or mortgage) over some or all of a company’s property.

 

U

Unsecured Creditor A creditor who does not hold a security over a company’s property. 

 

V

Voluntary Administration An insolvency procedure where the directors of a financially troubled company or a secured creditor appoints an external administrator called a ‘voluntary administrator’ to report to creditors and to recommend whether the company should enter into a deed of company arrangement, go into liquidation or be returned to the directors. 

 

W

Writ A writ is a formal written order issued by a body with administrative or judicial jurisdiction, generally a court.