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What's New At Credit Matters?

What's New At Credit Matters?

This month we have been working on two more features to add to our website.

The first is a simple and non-judgemental comparison of the pros and cons of digital money compared to cash. At the end of the day, both payment methods have a place in our modern world. You can find this feature now on our website.

Secondly, we are putting together an ongoing observation of the key factors which are seen as the recession develops. These observations will be broken up into three monthly periods except for the first period. The first period from February 2020 to May 2020 will be on the website shortly, and the second to the end of August, should be available in early September.

Again, we have chosen not to add brochures to the newsletter with the exception of the one from The Australian Small Business and Family Enterprise Ombudsman regarding mental health for business owners in Victoria.

Quote Of The Month

Quote Of The Month

The rear-view mirror is always clearer than the windshield.
Warren Buffett

Monthly Business Observation

Monthly Business Observation

There is no set roadmap to tell us what the future will look like. However, we do have a history of business and social behaviour and by reviewing these factors, we can see the value of Warren Buffet’s quote. Whilst the future is still less clear after reviewing these factors, there are indicators of what the future might look like.

To do nothing currently except to continue with past practices, is not acceptable. To make wholesale changes without suitable due diligence, is also unwise.

We need therefore to proceed forward with a disciplined approach, backed by a review of our past practices, to see what might be valid for moving forward. After all, the principles of doing business do not change. It would be wise to use of these principles, combined with the best business practices of today as a useful guide for moving forward.

By looking backward, we can find those situations of, “I wish I had done that then …” or “that decision was not right. Your focus should be to try and ensure these situations in the future are managed better and in accordance with what is happening at the time.

We also know that the principles of business, do not change, for example, “cash is king” is paramount. In addition, knowing that debt used for the wrong reasons is costly, manners (which never go out of date), great customer service, eliminating mistakes which cost money, etc., are all important. Finally, and not least, granting credit to your customers, combined with proper due diligence, will be more important than ever before.

One other aspect of business is essential. You must “OWN YOUR OWN BUSINESS” both emotionally and financially. Listening and following experts is easy. However, they are not always right. For instance, beware of those who say cash in the bank is lazy, who want to sell you finance, and who insist that customer is always right.

Of course, technology is an important component of the modern business environment. However, technology is just a tool of business. Like any tool therefore, it must do the task it was designed for, not just the task the designer thinks you must have. It would also be wise to understand, that not all your customers will have the same access or level of competence with technology that you would like them to have.

In conclusion, it is important to review our past unemotionally as there will be indications of how we can then use this information to help create our own roadmap for the future. Of course, we have to use this information in conjunction with our business acumen, business discipline and current experiences. Combining these factors, will assist to provide us with a way ahead for the future, which makes it clearer than it might otherwise be.

Monthly Business Conundrum

There are two things we know about the future. The first is that it is unknown, and second, we can anticipate certain outcomes based on reviewing the past.

To survive in the future, every business will be heavily reliant on learning the lessons of the past, business acumen, business disciplines and being adaptable to the future environment.

One of the factors will be; how are we going to sell, i.e. for cash, payment upfront, or on credit? In answer to this question, it will depend on a business’s management and employees, and whether they have the experience and business acumen to know which selling method is best?

Amongst the factors which all business face will be as follows.

1          If you sell on credit, are you prepared to be disciplined and defend your business’s rights with legal action if required?

2          When refused credit, your customers may say, whether it be true or not, they can buy on credit elsewhere.

3          Refusing credit, may result in your former non-paying customers buying from your competitors and causing them a loss.

4          When you sell on credit, you need to understand it is your money at risk as it sits in your customer’s bank account.

5          Selling on credit may not be profitable, even if the customer pays.

6          If refused credit, and you offer a suitable discount for payment upfront, are your customers still willing to buy?

7          In either sales mode, are you making decisions for short-term survival which may affect long-term survival?

In summary, the age-old question and business conundrum of; “the buyer verses the seller equation power struggle”, will be a major concern for all businesses. Get the answer wrong and you may not survive, even in the short term. Alternatively, get the answer right, you may well survive and develop a better business.

Monthly Business Conundrum

Word Of The Month

Is the spelling foetus or fetus?

It is interesting to notice that within specialist fields, the most commonly used spelling can and sometimes does differ from the spelling generally used. In legal environments - judgment, in programming - color, in technical fields - fetus, but the general spelling outside of the fields are judgement, colour and foetus respectively.

The problem is when people are so used to their environments their spelling creeps into their general communications and the spelling is often seen as incorrect.

The following is an example of a published change in spelling for the National Health and Medical Research Council (NHMRC). The following appeared in the National Statement - Summary of Updates Version 7.0. "Amendments to change spelling of foetus to fetus throughout the document in accordance with §14B (1)(b) of the NHMRC Act 1992." Date of effect 13 February 2013.

The problem here is according the section 14B (1)(b) of the NHMRC Act 1992 the recommendation for change can be made because it’s of “minor significance”. Yet some might see this as the Americanisation of the Australian English language, with fetus is the American spelling and foetus as the British spelling, a significant change.

The Macquarie dictionary and the Australian Oxford dictionary both have foetus as the primary spelling and fetus as a secondary spelling. The Macquarie dictionary has a note mentioning that health authorities are increasing recommending the use of fetus and fetal.

A search in Google for Australian sites (sites ending in .au) for the words fetus and foetus returns 870,000 and 265,000 results respectively, showing a considerably greater usage of the spelling fetus.

At this stage the preferred Australian English spelling as determined by the authoritative references is foetus, however watch this space, it may only be a matter of time before this changes.

Word Of The Month

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.

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Future Opportunities & Possibilities

Credit Matters is continuing to grow and provide marketing and knowledge about financial risks to the Australia business community.

Futhermore, 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

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 for options.