Credit Matters Blog

Is Bad News, Good News?

Kim Radok 12 March 2012


Why is bad news always bad news? Well the fact is, it isn't always bad news. Whether bad news is bad or is good, is always in the eye of the beholder and whether they are prepared to do anything having heard the news.

If you always run from bad news in an effort to avoid doing anything about it, then ultimately, you place your business at risk. However, if you view bad news as potentially good news, then your business may have a competitive advantage over your competitors.

For instance, the new Personal Properties Securities Act 2009 was greeted by many business proprietors as just more legislative bad news. What was worse, all they could see, was another cost being added to the business for no perceived benefit.

The fact is, often these legislative changes do little to advance the protection or growth of the business. In the case of the Personal Properties Securities Act 2009 however, this will be the exception. 

Yes, if your business is affected, there will be an additional cost. In the end however, it will benefit YOUR business significantly.


If your business is affected by the Personal Properties Securities Act 2009, by taking positive action to investigate and invest in understanding of the Act, you will benefit in three strategic areas. 

The first benefit is; you will clearly understand whether it applies to your business. If it does not, then you can move on knowing another distraction has been put to rest.

If you do need to do something, then you can start to plan and put your business in a position of stregth if your customer should become insolvent or bankrupt.

The second benefit is; if you act now, you can start to protect your assets. If you wait much longer, you will find the better legal firms and service providers will be tied up helping your competitors gain an advantage.

The third benefit; is your business will become a secured creditor in the event your customer goes in to  insolvency or bankruptcy administration. This is a huge advantage in protecting your business's assets from other creditors.


Before the Personal Properties Securities Act 2009 there were changes to the National Consumer Credit Protection Act 2009 which impacted on those businesses which dealt with consumers.

In the years to come, there will be other new changes to the way we do business. Some of these changes will be Legislative and others will be as a result of the economic environment. Currently for example, we see many service based companies ask customers for their credit card details up front and/or payment before they visit or do any business.

In conclusion, there will always be changes in how we have to do business. Whether you see these changes as bad news or good news will be from your personal perspective.

I believe, if you address the news others think is bad news quickly and in a positive manner, it becomes good news for your business. Meanwhile, it remains bad news for your competitors and other creditors that do nothing or hesitate to see what happens first. As always, those that hesitate will always be second when it comes to getting paid.

May you be paid today rather than tomorrow.

Kim Radok