AUSTRAC is analysing information related to the 'Panama Papers' and comparing it to our other data-holdings.
Published by Credit Matters Pty Ltd.
Welcome to Credit Matters Newsletter for April 2016. Our monthly newsletter contains information about financial risk management issues, blogs, advice of new business listings and free advice from organisations such as ASIC.
You can always view past copies of our newsletters via our website at www.creditmatters.com.au
There are no new features appearing on our website or in the newsletter this month. We continue to review possibilities however in order to make your future visits to Credit Matters even more beneficial. These developments will become evident in the coming months.
Word of The Month and Inconvenient Business Truth segments continue to offer valuable business insights.
Advertising via Credit Matters
If you are interested in reaching a wider group of business prospects, contact Kim to see what we can do for you. There are many different opportunities to advertise your business. The benefit of advertising with Credit Matters is we offer one of the few opportunities to reach a broad marketplace of customers with financial risk management issues.
This month you will find a new listing in our Overseas Category - Remit Corporation.
Nothing in business is simple. Too often as this month's quote suggests, a business person or manager has to make a decision between two opposite and often conflicting issues.
One of the main areas which causes business owners and professionals the greatest problems is managing the risk verses sales scenario. The question which may not be discussed adequately is, "Do we sell to this customer, a known credit risk, and face the danger of not getting paid?"
The reasons why this question is rarely asked is because of the conflict between selling, getting paid and risk management. Salespeople are employed to sell. However as we all know, a sale is not a sale until the invoice is paid. Sometimes the salesperson believes the credit department is working against them when a credit facility is denied to their customer.
This scenario is not strictly true. The problem is that salespeople too often "demand" the credit department authorise the sale, rather than take the time to "sell the deal." The role of the credit department is to evaluate whether the business will be paid and a profit made.
One of the rules of credit management is that credit managers have a key responsibility to increase sales. It is not their role to deny opportunities of making a profitable sale because a customer may be a slow payer or the sale in question may not be as profitable as other sales. Again, this principle of credit managers working to increase sales is rarely properly expressed or understood by poor managers and salespeople.
The credit manager is also working under the old mantra that "... if you don't have customers, you don't have a business". Again, it is no value selling to customers and running out of cash because they didn't pay. As an old statement reiterates "A business without cash is not a business."
Another issue faced by all business owners and professionals and constantly expressed is that "... we need to operate cheaper." What is all too often forgotten in this statement; the very concept that you get quality for a cheaper price is a contradiction in reality. When focusing all your attention on "working cheaper", it is also all too easy to forget about operating efficiently or having the capability to take up any business opportunities as they occur.
On occasions you may be unable to pay your bills in a timely fashion. When this happens on the odd occasion and you advise your supplier, there are usually few problems. In the long-term however, if your slow-paying becomes an ongoing habit, the risks and negative consequences are many.
Employing people is another important factor. Yes, they may one of your greatest costs, however the right employees are also amongst your business's greatest assets.
To work short staffed or with employees who have limited training occasionally may not damage your business in the short-term. In the long term however, good employees, in sufficient numbers to get the work done in a timely fashion, are essential. Employees are the glue which keeps all your business processes, technology systems, and stakeholders working together efficiently and at a minimum cost.
Business owners or professionals soon learn, managing complexity is just one factor in running the business. If business was ever simple, then it is not in today's environment.
Today, wise business owners and professionals are seeking more assistance from a support team to help manage the complexities of business. It is a tough job managing complex issues for just one person. This is especially the case when the business owner or manager is either a glass half full or a glass half empty type of person. The pay-off for managing complexity, comes about when changes to the business are required, the changes lead to the productivity improvements sought.
Word of the Month - The aim of Word of the Month is to share those many words used in Australian English which cause confusion. The confusion arises because there's often two spelling variations.
In Australia Is the spelling ise or ize?
When asked whether the spelling should be ise or ize, many Australians respond with, “that’s easy, ize is the American spelling”. If you check websites, newspapers and other written material in Australia, you’ll find many people spell using ize. Are so many Australians really using American English spelling?
The answer of course is no. Whilst Americans did decide to spell many words using ize back in the 1900s, in Australia we’ve made no such decision. Our spelling has evolved through use. There is no official body governing the spelling of words. The ise and ize spelling variations of words such as organise/organize and fertilise/fertilize are all correct, but over time the ise spelling has become the most widely used and thus the preferred spelling for most Australians.
In life we tend to see things as black and white, right or wrong and the same is true in spelling. Most people will consider their way to be the correct spelling, and if you use ize and the reader expects the spelling to be ise, this can affect their impression of your work. In Australia it is best to spell using the most popular or preferred spelling.
For more information on the Preferred Australian English spelling visit www.Australian-Dictionary.com.au .
CAPPER! Who doesn’t love the former AFL star, Warwick Capper?
He is certainly unforgettable from his days of playing for the Sydney Swans (and the Brisbane Bears for a short stint) with his tight short shorts, white football boots and flowing blonde mullet.
Nando’s clearly loves Capper too. Well, perhaps up until recently.
Would you like to know more?
Credit Matters provides access to blogs written by Kim Radok. Just go to www.creditmatters.com.au to read these and previous blogs.
Since our last newsletter, we presented the following blogs.
Since our last newsletter, the following posts have been added to the Invaluable Reading From Australia and Around The World section.
Credit Matters is a financial risk management resource centre for the Australian business community. If you are in business, Credit Matters is your ideal source of financial risk management solutions.
F. Scott Fitzgerald, author of The Great Gatsby, famously said, ‘The test of a first-rate intelligence is the ability to hold two opposed ideas in mind at the same time and still retain the ability to function’.
Our ‘Inconvenient Truths’ are facts-of-business that too many owners and managers either aren’t aware of, have forgotten, or lost sight of. Symptoms of overlooked truths are increasing expenses, depleting cash flow, diminishing profits and/or lack of winning new business opportunities.
Email us at email@example.com to discover the ‘Inconvenient Truths’ and how they can redirect your business back to success.
There are no secrets anymore.
What is happening with the law firm from Panama and to the changes in banking practices in Switzerland is another example.
In the modern world, amongst the key factors of why there are no secrets are:
(i) the changes in banking practices caused by governments and their regulators;
(ii) the reach of social media;
(iii) disgruntled employees, suppliers, customers, family and friends;
(iv) the use of technology and the footprints every transaction leaves;
(v) investigative journalists;
(vi) accidents and changed office procedures;
It would be wise to remember that there are no secrets anymore when contemplating entering in to a transaction which compromises your integrity or that of your business. The penalties of being perceived to have done the "wrong thing" often exceed any potential benefits which might have accrued when and if you are found out.
If you do not understand this Business Inconvenient Truth, contact Kim
To view the full list of Business Inconvenient Truths, become a member at www.creditmatters.com.au. Membership is free.
|1 April||16-100MR ASIC remakes instruments on financial reporting and record keeping by foreign licensees|
|1 April||16-101MR ASIC remakes instruments on electronic and dual lodgement of financial reports|
|4 April||16-103MR ASIC releases market integrity report|
|4 April||16-104MR NSW liquidator completes quality review program|
|5 April||16-105MR Former director of pool business sentenced|
|12 April||16-111MR ASIC releases Information Sheet 214: Mining and resources: Forward-looking statements|
|15 April||16-113MR Variation to financial services banning of Paul Duncan|
|15 April||16-114MR Court appoints liquidators to companies operating land banking schemes|
|18 April||16-115MR ASIC permanently bans insurance broker|
|18 April||16-116MR ASIC permanently bans finance broker|
|18 April||16-118MR Former Company Director sentenced to 2 years and 9 months jail for fraudulent misappropriation|
|21 April||16-122 MR ASIC permanently bans Sydney finance broker|
News From ASIC - Help with ASIC online services
Are you registering, renewing or cancelling a business name? Check out ASIC's new series of YouTube videos to help you use its business names register and other online services.
13 April 2016
AUSTRAC is analysing information related to the 'Panama Papers' and comparing it to our other data-holdings.
AUSTRAC has cancelled the registration of Mr Yousif Murad.
Former solicitor steals more than AUD1 million as part of an elaborate mortgage refinancing fraud to fuel his long-term gambling addiction.
A free smartphone app developed by the Australian Securities and Investments Commission (ASIC) will help business owners undertake important checks before they enter into business transactions with other organisations.
For more information ASIC APP INFORMATION
Credit Matters is continuing to grow and provide marketing and knowledge about financial risks to the Australian business community.
Furthermore, we invite marketing and knowledge ideas from our readers and contributors on how we can assist our respective firms grow. If you have any ideas, please contact me at Click to see email
If you are interested in finding new ways to reach your marketplace, why not try Credit Matters. Our prices for advertising are very reasonable and advertising packages are on offer to make any cost, even more affordable. So if you are interested in reaching your customers at the right price, please contact Kim at Click to see email for options.