Buying equipment for your small business is a big deal. Often it means committing considerable resources which can put an added strain on cash flow – particularly in the tough economic climate we’re currently experiencing. If your new equipment turns out to be faulty, this has the potential to put your small business under even greater financial difficulty and stress.

Knowing how to navigate a faulty business equipment dispute can be overwhelming. Where do you start, who can help you and what information do you need to provide to support your claim? We’ve put together some steps to help get you started.

Firstly, we suggest you:

• Email or phone the business to explain the situation and describe the issue with your faulty business equipment. The Australian Competition and Consumer Commission has a great complaint letter template tool that can help you explain your problem and request a resolution: Complaint letter tool | ACCC

• Retain the receipt or contract of sale.

• Gather any emails or letters relating to the sale.

Under the Australian Consumer Law, businesses that sell products or services that don’t meet certain standards must offer solutions – this applies to your business too if the item purchased meets at least one of the following conditions:

• it costs less than $100,000 including GST

• it is a product or service commonly bought for personal, domestic or household use

• the item is a vehicle or trailer that is used mainly to transport goods on public roads.

However, it doesn’t apply if the business equipment is:

• for resupply

• for use or transformation in production or manufacturing

• to repair or treat other goods.

The Consumer rights and guarantees | ACCC has some great examples that explain these parameters if you’re unsure if your faulty business equipment fits these rules.