Credit Matters Blog


Kim Radok 11 April 2022

Despite what you read from people with vested interests to encourage more spending, there are real problems ahead for all of us, including the business community. The fact is:

  1. a small number of people are increasing their savings at a rate that can never be spent;
  2. others are asset rich and cashflow poor;
  3. older people with long memories, are reducing spending in hope of surviving the next business downturn or recession;
  4. others again have lost everything except for their debts; and
  5. cash spending available for the future has been compromised.

In addition, we already know of a number of businesses that had debt and which could not survive even the first three months of COVID without closing down, or going into insolvency administration, or increasing their debt. What are the ramifications where other businesses run out of cash or has to take on debt to survive on the future viability of your own business?

There are also all the suspected zombie businesses still in operation which will only survive via a number of circumstances, one of which, will be if their customers and suppliers remain solvent. Many zombie companies may therefore not survive in the long term.

Due to the above factors, it is a good idea to review your business’s fundamentals to ascertain whether it is still a viable proposition. The value in completing this exercise are many and include:

  1. identifying any risks before they become unsolvable or terminal;
  2. peace of mind, the value of which is often underappreciated, that confirms, all things remaining equal, your business is in good shape;
  3. identifying additional income streams with new products and services;
  4. finding ways to improve your business for survival and growth.

For many businesspeople and their managers, the question related to debt and savings may be too large for them to comprehend at this time. After all, they are probably busy working IN their business on day-to-day issues and allowing normal business distractions to take their eye off the big picture.

Nevertheless, being aware of tomorrow’s issues, not just today’s, is an important function of business ownership and management. It is also equally important to understand, by reviewing issues associated with savings and debt, it is just not a negative function. By understanding and thinking through all the issues, promising and positive opportunities can be found to enhance your business for the future.

Want to know more, contact Kim at, or +61 3 9886 6707 Mobile 0411 649 261, or have a look at what we offer via our website at