I am a sole trader and operating a small family business. I am having a dispute with my formal business partner. And now he even send me a large invoice which I am entirely disagree and feel unfair to me. I intend to challenge it with legal assistance.
How would this unpaid invoice affect my credit report, if the dispute continues?
Any suggestion would be appreicated!
How does a sole trader have a business partner?
It used to be that a sole trader operated on their own and didn't have a business partner?
Why would your business partner be invoicing you anyway?
Sole traders can engage sub contractors and also employ people but they cannot have another business partner.
Does your business partner report unpaid invoices to credit reporting agencies?
As far as I know, No.
But is he able to directly report to credit agencies? (I thought it has to go though debts collection agency first?)
He could submit a default on creditorwatch which would impact your businesses credit report.
is a trading company itself able to issue a default (then submit to creditor watch)?
only when you use creditorwatch as the credit report reference
How would your ex business partner report the defaulted payment to the credit reporting agencies?
Edit: beaten by a mere 10%
That is exactly what I thought
It won't have any influence over your credit report.
For a start, there's no reason a bank would have any information about that, and the banks certainly won't be taking your partner's word for it.
The only time it might, theoretically, influence your credit report is if there was an outstanding legal judgement to pay it that you have had to declare to a bank at some stage.
True (Unless it is court decision, then I have to pay for it Or get name on to the blacklist LOL)
There is probably no need to engage a lawyer at this stage. Someone has made an allegation you owe them money, which you deny. They will either not pursue it (you don't need a lawyer) or they will (you might need a lawyer). No use splashing thousands of dollars around at this stage. Without knowing the quantum and details, though, which might make a difference.
Thank you, Daabido. Really appreciated! (It is True)
14 days notice is required before an organisation can list a default on your individual credit file - see s. 21D(3) of the Privacy Act 1988 (Cth).
https://classic.austlii.edu.au/au/legis/cth/consol_act/pa198…
Thank you Kipps. Do appreicated!
(just wondering: isnt this related to credit provider like credit card company, afterpay company etc?) I am fighting with standard trading company, not sure if this rule applies.
How much is the invoice, could it be worth paying it if he agrees to cut ties?
Oh my god, what is going on here today? You CANNOT be a sole trader with a formal business partner. You need advice beyond "OMGWTFHAX creditscore because I'm a bum" as you clearly don't understand your legal business structure.
EITHER, you're a sole trader OR a partnership, and your resulting liabilities are COMPELTELY different in this situation depending on which.
Possibly.