Published by Credit Matters Pty Ltd.
Welcome to Credit Matters Newsletter for August 2014. 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
In recent days, I have been able to fine-tune and add new features in to our Members Area. You can join the Members for free. If you are interested in gaining new ideas, please visit, investigate and take advantage of what is on offer.
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. For instance, you will note the attached flyers with this newsletter from:
ADC Legal have provided an introduction to their services.
Credit Matters flyer shows how we can help you understand the bigger picture of financial risk management issues which may impact negatively against your business endeavours.
Accounts Receivable - "Is it an asset to your business, working capital, a cauldron of liabilities and problems, or something else again?"
Business owners and their managers consider Accounts Receivable to be an asset because accounting convention says it is a Current Asset.
Accountants recognise Accounts Receivable as a Current Asset and a component of the business's Working Capital.
Credit and Accounts Receivable Managers understand Accounts Receivable reveals how much of their company's cash is sitting in their customers' accounts and a picture of the organisation's relationship it has with its customers.
Unfortunately, business owners and managers, tend to treat the Accounts Receivable as a definable fixed asset such as a block of land with a fixed value and low maintenance costs. In doing so, they underestimate the investment in protecting the value of their Accounts Receivable. As a consequence of such thinking, business owners and managers may subsequently find this asset to be nothing more than akin to a block land at low tide by the sea.
The day of the one-dimensional manager or employee is fast disappearing. Some people would say, employing the one-dimensional employee is already gone. To employ people only for their professional or work skills means your company risks losing business.
There is one exception to this rule. There are those employees who are above average at their trade or better than average as fee earners. Unfortunately, these same employees may not always interact with your customers appropriately. In these exceptional situations, a different format of working with these employees is worth considering to maximise their earning opportunities. After all, although they may have the potential to earn above average revenue for your company, if their attitudes and behaviour drive your customers away, then rarely will you see that earnings potential.
Moving on, I acknowledge most employees cannot be good at all aspects of work. However that is not the point. In essence, what I am saying is that you must look for those employees which are good at their work, and who understand the bigger business picture in which they operate. The bigger picture is of course, you want employees which attract business, not those which make the business experience a nightmare.
When your employees are interacting in any capacity with your suppliers and customers, part of what they are doing is "selling an image of your business." This means at all times, you want employees who are good at their work and show why your company is the best one to do business with in the marketplace.
Therefore when employing anybody, you need to consider how they can best "sell" the benefits of trading with your company.
Following are four examples of managers and employees which are not selling a positive image of their business.
1 Management has decided the company will not employ a dedicated receptionist to answer the telephone. All calls are therefore routed through an automated telephone system. Usually with such systems the caller is invited to "press # for so and so, etc. or press "0" to speak with the next available person.
Two things usually happen - (i) no one answers or (ii) a busy person in an administration area picks up the phone and responds to the caller in an unprofessional or unhelpful manner.
2 A supplier calls the CFO / Office Accountant about an unpaid account. The caller is informed the CFO / Accountant will call back. The CFO / Accountant fails to telephone the supplier to answer their enquiry.
3 An overworked disenfranchised warehouse person does not care if a damaged or the wrong product is sent to the customer.
4 Customer enquiries are ignored by salespeople too busy "making another sale".
The list goes on and there are many other similar examples which may highlight your company's lack of interest in engaging with suppliers or customers. Unfortunately today we seem to operate in a business environment which suggests selling the positive reason of doing business with your company is not valued.
Consequently we can tend to edge towards despair of finding a supplier who can assist our business grow, or a customer willing to pay on mutually agreed terms. In this situation, the company which has employees willing to assist and be friendly is like a beacon of light on a dark night.
As our friends in the marketing profession continually ask us "What is your point of difference?" It may be, your point of difference are your employees who are all focused on "selling why it best to do business with your company"
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.
"From a player's point of view, it has always just been football. Or at least it was.
As an older player, I am acutely aware of our responsibility on the the club's bottom line."
Nick Dal Santa, AFL North Melbourne Player - AFR, Monday 23 June 2014
ASIC investigation leads to former Phosphagenics CEO pleading guilty to $6m theft
Dr Esra Ogru, a former chief executive officer of Phosphagenics Ltd, pleaded guilty today in the Melbourne Magistrates Court in relation to her role in the alleged theft of more than $6.1 million, following an ASIC investigation. 14-209 MR. 22 Aug
ASIC investigation leads to five years in jail for former director
An ASIC investigation has led to Mr Carlo Cini, a former director of Williamstown-based company, C Cini & Company Pty Ltd, being sentenced to five years and three months in jail. 14-206MR. 20 Aug.
Former chief executive to stand trial
The former chief executive of a group of IT companies has been ordered to stand trial on deception charges. 14-199MR. 14 Aug.
Make it Mine Finance Pty Ltd pays $20,400 penalty for misleading advertising
Make it Mine, a credit licensee based in Bayswater, Victoria, has paid $20,400 in penalties after we issued two infringement notices for making misleading representations on its website. 14-198MR. 14 Aug.
Former director jailed
Mr Bill Katsabis, a former director of P.G. & N. Enterprises Pty Ltd (in liquidation) (P.G. & N) has been sentenced to two years and three months imprisonment following an ASIC investigation. 14-189MR. 7 Aug.
Esuperfund Pty Ltd pays $30,600 penalty for misleading advertising
Esuperfund Pty Ltd has paid $30,600 in penalties after ASIC issued three infringement notices for false or misleading online advertising. Each infringement notice imposed a penalty of $10,200. 14-196MR. 12 Aug
Changes to ASIC Service Centres
From 1 July 2014, ASIC's Service Centres are transitioning to kiosk-based services for lodging online or dropping off documents to be sent to the ASIC Traralgon office for processing. 20 May
New Booklets Available
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.