Credit Matters

Invaluable Reading From Australia and Around The World

Contributing to our position as Australia’s premium Financial Risk Management resource, our management globally explores and surveys relevant and valuable articles published by respected professionals, academics and organisation. The articles offered here are suggested reading for any Business Owner and Financial Risk Management professional.

Invaluable Reading From Australia and Around The World

Transparency of tax default data is a win for small business

Colin Porter

21 Apr 2017

Colin Porter of CreditorWatch has provided an article with a timely warning about a new initiative from the Australian Taxation Office and its potential ramifications.

In effect, the ATO will be contributing information to credit reporting bureaus about Australian Businesses with unsettled tax debts exceeding $10,000 that are overdue 90 days.

If you are unfamiliar with this Legislation and the potential benefits and negative consequences, you may find value in starting your understanding of the potential impact on your business from reading this article.

 

All too late?

Kris Macauley

30 Mar 2017

Although this article is from a UK professional, the indicators of why a business may become insolvent are common for any country.

Kris Macauley presents seven common indicators to indicate that a business may about to become insolvent. Of course, there are other insolvency indicators. Nevertheless, a review of the insolvency factors mentioned may help you understand there are visible factors which could indicate a business is heading towards insolvency.

Make no mistake, these factors apply to both your customers and suppliers. Too often we only consider customer insolvency. However, supplier insolvency can cause just as many problems for your business.

If your business is overly dependent on any one or two suppliers therefore, it makes sense to monitor the delivery performance of these suppliers. Should problems start to occur, this may be an indication the suppliers are in financial trouble. In turn, this situation could have negative implications for your business.

All business owners and professionals need to be aware of the indicators of the financial well-being of their stakeholders. Therefore, this article may be a one resource you can use to start to learn about insolvency indicators, or review what you already know.

 

Comply or Explain (to the Judge)

Richard F. Chambers

1 Mar 2017

Richard Chambers discusses a number of factors which should be carefully considered by all directors and senior managers when establishing a compliance program for their business.

Long gone are the days when directors and senior managers could fob off concerns when compliance programs were found wanting. Today, the penalties against directors and senior managers of a business with a failed compliance program are professionally embarrassing, personal and often severe.

As a director or senior manager, if you are unsure of your responsibilities on whether your business's compliance program protects you, reading this article may be of benefit. As always, the material in this article is only a starting point in the evaluation and production of your business's compliance program. If in doubt, it is always wise to use properly qualified professionals when building or evaluating your compliance program.

Why You Should Fire Your Worst Customers

Steve Cartwright

20 Feb 2017

Understanding and managing your costs is essential if you are to make a profit in business. Despite the mantra that the "Customer is King", not all customers act like a good king. There are those customers which do a great detail deal of damage to you and your business.

As Steve Cartwright illustrates in this article, there are always costs to dealing with customers. The cost however, in dealing with unprofitable and difficult customers often grows exponentially above any potential benefit. Furthermore, as Mr Cartwright points out, the costs are just not financial. There are other costs involved including, emotional, respect and lost time which could be better spend on other projects.

If you are having problems with difficult customers, Steve Wright's article may be of value in addressing some of the issues you currently face and help you decide on how best to deal with your worst customers.

Contract ambiguities: Do you know for sure who owes you?

Lovetts Solicitors

2 Feb 2017

Lovetts Lawyers from the UK, have prepared a blog about the importance of knowing who you are trading with when extending credit.

Irrespective of the fact that Lovetts are based in the UK, the message of this blog applies across any legal jurisdiction or in any country. Extending credit is not without risk and if you can reduce the risks, then this is a worthwhile objective.

You may be suffering from slow-payers and cannot identify the trading entity, or who had authority to sign the purchase order or trading documentation in order to take legal action to recover your debts. Maybe you suffered bad debts in the past, or alternatively you are setting up a new business.

If this is the case, or just want to take the next step in tightening up your trading documentation, then this blog maybe a good place to start the process.

Millennials and Compliance: Their Perspective

Mark Dorosz

19 Jan 2017

This article focuses on how Millennials may view compliance differently to what we might expect, especially in regards to the use of social media.

It is true they been raised in times different to the older generation and as a result, been exposed to other lifestyles and experiences. As such, they bring another perspective on how and why they use social media.

The issues of compliance in these circumstances, can be challenging. Your business may have to find interventions that can instruct the younger people on what is and what is not acceptable in a manner they can understand.

This article may be useful in helping you begin the journey on how to incorporate their experiences into your compliance training. At the end of the day, you do need your compliance education to be effective.

Are you a victim of fraud?

Andrew Tragardh

3 Jan 2017

Fraud is an ongoing problem for all business people and their managers. Whether you like it or not, fraud is a normal part or the business world.

Andrew Tragardh provides a number of factors for your consideration when dealing with a fraud and some lead to a better result than others. There are different solutions available for each type of fraud. It would be wise to think about which is an appropriate strategy for any type of fraud encountered when looking for a positive solution in the recovery of your funds.

I suggest that all business people may find useful information strategy may be of value in the event that they become a victim of fraud. Perhaps you may also want to record the reference to this article for future reference.

6 Emergency Signs You Need to Change Your Life

Angelina Zimmerman

16 Nov 2016

Whether we are a business entrepreneur, owner, manager or employee, there are times when in our lives we are under so much stress that our ability to operate effectively is compromised.

In her article, Angelina Zimmerman presents information on six signs that indicate you may have issues which require further consideration. Whilst Ms Zimmerman's article is directed at entrepreneurs, these six signs also apply to other people in the business environment.

If you have been feeling somewhat confused about why you are not managing your affairs at the moment, this article may be a point of reference on your situation. Of course, professional help should always be sought before jumping to any specific conclusion or taking any drastic action.

10 Risk Factors Impacting Cross Border B2B Payments - Post I

Leslie Stroh

26 Oct 2016

It seems nearly every government export department and trade professional are advocating exporting as a way for your business to increase sales and revenue. This may be the case for your business.

One of the core problems you will face if you decide to go down the export path, is risk. Too often the advocates of exporting, highlight the benefits and minimise the risks.

In this brief article by Leslie Stroh, there is a list of 10 risk factors to consider when exporting. You may have to access other sources of information to adequately equip you with an understanding of each factor. However, as a starting point, this article may be worth a read if you are interested in increasing your sales and revenue via exporting.

When Tough Performance Goals Lead to Cheating

Colm Healy and Karen Niven

19 Oct 2016

Colm Healy and Karen Niven discuss a recent research project they conducted which tested the goal setting process for organisations. The ethos behind the goal setting within any business, is of extreme importance. In addition, the part culture plays within the organisation is another essential factor in the success or otherwise of the goal setting process.

The subject and of impact goal setting has on employee behaviour, is especially in today's business environment. All too often we see yet another well-known business or government organisation being caught out due to the unethical behaviour of its employees.

Goal setting is a valid and valuable part of the business process, it completed properly. If you get the process right, you can motivate your employees to achieve their targets which benefits all stakeholders. Get the process wrong, and there are big penalties which come in to that will impact on your business negatively.

If you are unsure of the importance in goal setting within your business, this article could be of value in helping you understand the process.

Being a Successful Entrepreneur Is Not Only About Having the Best Ideas

Andy Molinsky

3 Oct 2016

Andy Molinsky acknowledges a great idea is the place to start to make it a feasible business. The main problem which many entrepreneurs have is taking their idea and making it into a commercially viable business.

Entrepreneurs are mainly thinkers and doers and so acting as a business person often causes them difficulties. It is that side of the business, thinking and acting as a business person which brings many entrepreneurs undone.

Mr Molinsky identifies three start-up problems for entrepreneurs once they have the idea for a business.

First, when building a business, the entrepreneur needs to face up to the fact, they may not be good at all aspects of the business. The key is to understand what you are good at and seek help in your areas of weakness.

Secondly is to commit to your plan and accept there may be areas of the business where you need to operate outside of your comfort zone. Many business people have a fear of talking to investors for instance.

Thirdly, a business person needs to find their own way in business. No one business model fits every business.

As a brief introduction in to some of the issues of creating a new business, this article may be worth reading.

Building Good Referral Karma: How to Generate More Business Through Your Happy Customers

Michael Griffiths

23 Sep 2016

Michael Griffith's article is focused on the value happy customers add to your business, particularly in the area of referrals and in providing positive comments on your business.

When you read Michael's strategies on how to keep your customers happy, you start to realise that these strategies are also important for your business in other ways.

Happy customers don't just refer others to your business. They are also more likely to pay on time, forgive occasional mistakes, and continue to make enquiries which you can utilise to improve your business processes. Equally important, they do not go online to berate your business for inefficiencies which damage your business's reputation.

If you have lost your way or had not realised the value of happy customers to your business, this article may be a good start to reinvigorating how you deal with your customers.

The Future of Payment Transactions and the Unprepared

Daniel Burrus

16 Sep 2016

Daniel Burrus has written about the increasing use of new payment methodologies in the coming years. He is probably right when he advises digital payment systems are going to be the norm for the future.

There are an immense number of issues which business people need to get their heads around, because as we know in life, nothing is simple. Whilst the use of digital transaction methodologies is attractive in theory, they do have associated risks. Accordingly, it is a wise business person who takes the time to understand the issues before blindly accepting digital payment policies are right for their business.

Daniel Burrus's article may be a good place to start if you are going down the digital payment path to try and ensure you understand all the benefits and pitfalls of modern digital payment methodologies.

BHS losses could have been reduced by good credit management

Credit Man

31 Jul 2016

BHS was a UK retailer with a history going back 88 years. Recently the retailer was put in to Insolvency Administration with massive debts.

This article is not just a story about the value of good credit management practices, many valuable other business factors are illustrated. The business issues raised are (i) the impact on your business when a major customer goes out of business, (ii) the flow-on effects to other businesses, (iii) the cost of trying to find additional sales to replace the losses just suffered and (iv) the importance of not seeking just one or two major customers.

I suggest the value of this article lies in the many business messages of loss which can be suffered when a major customer goes out of business.

High-tech vigil aims to deliver safe bet

Patrick Bartley

18 Jul 2016

Irrespective of whether it is in our personal lives or in business, keeping secrets is increasingly difficult. In this article, Patrick Bartley sheds light on how racing stewards in Victoria are using technology to identify potential illegal behaviour.

The use of technology is increasingly of help for the guardians who are in charge of looking after the wellbeing of our society as they track down the perpetrators of illegal and damaging behaviour.

In business, with increasing use of technology and in particular, Cloud based accounting and business systems, keeping business secrets will be increasingly difficult.

The value in reading this article is that is yet another example on how the power of technology can be used to identify unethical and criminal behaviour which may otherwise remain hidden.

Powerful Psychological Forces That Make Good People Do Bad Things

Dr. Travis Bradberry

28 Jun 2016

What makes good people do bad things? We keep asking ourselves the same question when we see how good people are caught up in bad situations and with the wrong people. There are many different reasons why people do the wrong thing, and often, there are no simple answers.

One of the factors on why good people do the wrong thing can be found in understanding the psychological factors involved.  Dr. Bradberry illustrates 14 of Dr. Kaptein’s most compelling findings on how the mind tricks good people into losing their moral compass and going astray.

In either situation, this article may be one source of assistance in helping you work out what influences good people to do bad things.

Credit and Collections 1.01 - Credit Applications & Personal Guarantees - Why they're still relevant

Chris Hayes

20 Jun 2016

Chris Hayes writes about one of the forgotten tools of credit management; the personnel guarantee.

His comment on what many people say, “… personal guarantees aren't worth the paper they're written on” is based on a myth from “the good old days".  This myth come about because many creditors failed to validate the worth of the security supporting the personal guarantee.

A personal loan is no different to taking any other form of security. If you aren't prepared to do the work to validate the security or to understand the nature of the security, then of course the security may be worthless. Notwithstanding all the work which is required to ensure that it is worthwhile accepting a personal guarantee, the guarantee is still a valuable credit tool.

If you now think is time to revisit the use of a personal guarantee as security, this article may be worth a read as a starting point for your investigations.

Create Memorable Customer Experiences with These Strategies

Kim Niemi

27 May 2016

Kim Niemi writes about one of the major disruptors in business, the customer experience. What are customers really looking for? We know one factor is the cheapest price. However, are there other factors which influence their decision making which you can use to influence their decision making positively?

Kim writes about what she considers to be the five most important factors. By focusing on these issues, she believes you are likely to attract more customers. Furthermore, I respectively suggest, by considering these issues properly with an open mind, you will also have a much better business organisation.

The five same issues which Kim writes about not only attract customers, they are also applicable when it comes to running a profitable business.

If you are failing to attract or keep your customers, this article may be a good place to start in rethinking how you do business.

Overwhelm in business and sales can be disastrous if not treated immediately

Greg Ferrett

6 May 2016

Greg Ferrett has written a blog with a timeless message about the issues which we all struggle with from time to time. This blog was originally written in November 2015, however it's message is as applicable now as it was then. After all, as it is now approaching the middle of May, we are at the start of that hectic time with the end of the 2015-2016 financial year in sight.

Managing yourself and your time are critical factors in surviving the frantic pace of business these days. When major deadlines approach, managing these factor is particularly important. The suggestions provided by Greg on managing the tasks ahead within the time available are a useful reference for all business professionals.

You may be a seasoned business professional or a new business professional who is battling time and task issues. If that is the case, this article may be worth a read provide the ideas to help you manage your work and time more effectively.

9 Things That Make Good Employees Quit

Travis Bradbury

20 Apr 2016

Dr. Bradberry's article is focused on how you may try to keep good employees working for your business.

Too often it is forgotten, people are the glue which keeps your business running. Employees are the link between your business's procedures and technology tools. Good customers help sell your business products and services to others. One aspect of selling, is having employees which make customers feel wanted and valued by attending to their needs in a fast and efficient manner.

A workplace where people feel safe and properly valued, also attracts other likeminded people which may become employees. Therefore, being aware of what drives good people away from your business, is also really important.

You may not have thought about what motivates your employees and customers lately, or are finding you have a high turnover of employees. This article may therefore be a good starting place to identify the issues which assist you keep good people involved in your business.

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