A testimonial should not become an inaccurate settlement condition
Review a proposed testimonial or endorsement condition in a debt settlement without agreeing to unsupported factual statements.
Corporate Recovery Partners
01 / 06
Payment is linked to a public statement
A business offers to settle its overdue account if you provide a positive testimonial for its website. Read the exact proposed words before treating this as an easy concession. The statement may describe an experience or result you cannot honestly support. Discuss that condition with your adviser alongside the payment terms, rather than leaving marketing wording until after signature.
Check whether the proposed endorsement names you personally, your company or an employee. Confirm who has authority to approve the statement and any use of the business name or logo. Do not volunteer another person's endorsement or assume a customer's draft accurately represents the organisation simply because it is presented as standard publicity wording.
Business.gov.au's record-keeping guidance recommends accurate, secure business records. Use the relevant correspondence and work history to check factual statements in the proposed endorsement. A positive description should not be invented to obtain payment. Separate comments you can genuinely make from claims about performance, reliability or outcomes that the records do not support.
Imagine the draft testimonial says the customer always paid promptly, although the settlement concerns months of overdue invoices. That wording contradicts the experience being resolved. Preserve the proposed text and tell your adviser why it is inaccurate. Do not assume a private explanation elsewhere in the file will correct the impression created by the public statement.
Ask where the statement would appear, whether it can be edited and what review or approval is contemplated. Have the adviser consider the actual settlement language and any relevant obligations before agreeing. Do not sign on the assumption that the testimonial is optional if the documents make payment conditional on providing it in a particular form.
Seek a documented resolution that does not require false or unsupported statements. Retain the agreed wording and authority if an accurate endorsement is voluntarily included. The unpaid account and the proposed publicity condition are separate parts of the decision. Understanding both allows you to assess the offer without trading a clear debt problem for an unreliable public claim.