Published by Credit Matters Pty Ltd.
Welcome to Credit Matters Newsletter for February 2018. Our monthly newsletter contains information about financial risk management issues, blogs, advice of new business listings and free advice from organisations such as ASIC.
We are pleased to introduce our new feature via the Credit Matters website; a business cycle clock and the philosophy behind introducing the clock.
We stress the purpose of the clock is to help you prepare your business in an orderly fashion before the next business downturn occurs. Waiting until the next down turn is in full swing will be too late to maximise any actions you may undertake
You will be able to access the clock via the Doomsday Clocks link on the main menu on the Home page at www.creditmatters.com.au
Advertising via Credit Matters
If you are interested in reaching business prospects who need your services or products, contact Kim to see what he can do for you. There are many different opportunities to advertise your business via Credit Matters and it may not be as expensive as you might imagine.
In this newsletter, you will find the following offerings: the RSM introduction to the CFE exam course, AICM training courses for Feb-March and Jan Reeves brochure if you need assistance with your outstanding invoices.
To extend B2B credit, or not to extend B2B credit, is this month's conundrum.
In good times, I was once advised, that you can be a little more generous with credit terms because customers have a lot more power to change suppliers.
In bad times, credit becomes scarcer because no one seems to have the money to pay their invoices in a timely manner. Businesses are often therefore far more protective of extending credit.
In my view, it makes no difference.
In good times or bad, crooks and bad business people don’t change. They are still crooks and bad business people.
Good business people do not change their behaviour in good or bad times. They work at protecting their reputation and largely pay in a timely manner or under set terms. It does not mean they cannot go broke.
The other conundrum factor to consider when extending credit is, without risk, there is no reward and if you never have a bad debt, you have not maximised your profitable opportunities.
Your conundrum therefore, is to decide how and when to extend B2B credit to minimise risk without losing profit potential.
If you review the history of the worst business downturns, you will note that the initial cause of every downturn was seemingly an isolated event. For example, the demise of a major business or bank, the collapse of debt housing market in the US or a stock market crash in one or more countries. The resultant business downturns however all flowed on from these apparently isolated events.
Today, every business is globally connected in some way to other businesses and what affects them, affects your business. This means, the days of an insular view of your business only and ignoring the rest of the world around you, are gone forever.
Recently therefore, it has been pleasing to speak with business people who have understood the realities of today’s interconnected business environment. They have reviewed and adapted their operating processes, products and services and strategies to suit the need of their business as the world is changing around their business.
These business strategies include:
exporters no longer supplying until paid;
the “hands on business person” who is letting go of doing everything or the DIY business person who realises others can do it better and more affordably than they can;
changing their range of products and services on offer;
looking to clear bank and other finance facilities whilst interest rates remain low;
employing the best quality people under mutually agreeable employment terms,
learning to manage risk better;
confronting slow paying and unprofitable customers to try and create a profitable trading arrangement; etc.
As I write this article, we have seen a reduction in the value of cryptocurrencies and the value of stock markets around the world.
Do not be fooled by simplistic statements that these events were necessary reductions in values to more realistic valuations. There have been casualties because of these events with loss of money and confidence. The full effect of any losses from these value reductions will not be felt for the next six to 12 months. It takes that long for the effects to wash through the business environment.
The extent of any negative outcomes will depend on what happens in the coming weeks. You would be naïve however, not to think that there will not be some negativity even if there is no further bad news. As a business owner, manager or professional, you simply cannot take your eye of the broader economy.
Business operates in cycles between good and bad times.
In the bad times, the business people which lose out are those which operate with little respect for what goes on around them and are therefore unprepared. The business people which win, are those which understand there are business cycles. These people saw the signs of potential trouble and adapted their business strategies to prepare for the expected troubled times ahead.
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.
Is the spelling program or programme?
In the 60s I was taught the spelling was programme. As time went on the main spelling became program, with programme used in some instances, e.g. theatre programme. A search today for “theatre program" and “theatre programme”, using Google for Australian sites, shows program and programme are used in a ratio of 195:1, so even theatre program has become the preferred spelling. The Macquarie and Oxford dictionaries list program as the primary spelling and programme as a secondary spelling, except for computer program, where the spelling is always program.
In Australian government usage there has been flip-flopping. In 1998 John Howard issued an edict for programme to be used. Reportedly in 2007 Kevin Rudd reversed John Howard's edict. In 2013 some government ministers’ departments started using programme, as that was the preferred spelling by Tony Abbot, although no such edict was issued from Tony Abbot’s department. As you can see, a single person’s spelling preference has had an impact on government documents. In the future however, as older politicians move on, it is likely the spelling program, will also become the primary spelling for government documents.
For more information on the Preferred Australian English spelling visit www.Australian-Dictionary.com.au .
8 February 2018
Developing a biofuel project in Queensland? The regulatory environment is changing up with a broad-ranging Queensland Government review of energy legislation due for imminent release. Energy production in the Australian biofuel industry is currently undergoing rapid transformation, despite its relative infancy. The regulatory environment is accordingly under review to more effectively the expanding industry. Federal […]
Would you like to know more?
Peter Mills | Special Counsel | +61 7 3338 7921 | pmills@tglaw.com.au
Conflict is inevitable. You will have to deal with it in your friendships, relationships and unfortunately, in your workplace. How you handle conflict in your workplace will set you apart from the poor leaders and generate loyalty and respect within your team. Here are 3 simple ways on how to handle conflict.
OPEN UP
Great leaders are not afraid to open up and share their feelings about the conflict, as long as it is not in a condescending way. By opening up and acknowledging the discomfort that the conflict is bringing, or may bring will make team members feel comfortable enough to do the same. This will enable the root cause to be addressed and ultimately resolved.
REMAIN OBJECTIVE
It is important to remain objective and exhibit non-interest behaviour. It becomes imperative to seek to understand the conflict and the root cause, rather than to be understood and worry about who’s right or wrong.
FOCUS ON WHAT MATTERS
It is easy to go off on tangents when dealing with conflict. Therefore, it becomes important to focus on the core and present matters at hand. Ultimately addressing the bigger issues will lead to long-lasting solutions and an avenue for these conflicts to stop arising
We’re here to help! Contact Trace Personnel on 9218 5466 for all your recruiting needs!
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.
"The past is a thief, it steals the present & the future from us"- time to let it go, clearly no way back for me!
The butterfly effect is a concept that states that "small causes can have larger effects". Edward Lorenz
This concept was initially used in theories about weather prediction but later the term became a popular metaphor in science writing.[1]
In chaos theory, the butterfly effect is the sensitive dependence on initial conditions in which a small change in one state of a deterministic nonlinear system can result in large differences in a later state.[2]
From Wikipedia, the free encyclopedia
"The past is a thief, it steals the present & the future from us"- time to let it go, clearly no way back for me!
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 info@creditmatters.com.au to discover the ‘Inconvenient Truths’ and how they can redirect your business back to success.
If you only look forward and never review your past, as advised by some business people, you will never learn quickly enough to avoid making the same mistakes again.
By following the mantra of never looking backwards, means you do not take the time to learn from the mistakes of other people in business.
In addition, something that didn’t work in the past, may now of value, albeit by reworking the material and representing the idea to suit modern times.
Repeating your mistakes or those of other business people, does not make you a better business person. It is just helps you lose more money for no good reason.
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.
5 February 2018
18-028MR Former director pleads guilty to fraudulently removing company funds
8 February 2018
8 February 2018
18-034MR Operators of 'binary options trading boiler room' banned following conviction
13 February 2018
18-038MR Warning over shadow shop scam impersonating ASIC
14 February 2018
18-039MR Company convicted for failing to produce books to ASIC
16 February 2018
19 January 2018
Hot Topics
6 February 2018
New fact sheet helps businesses identify beneficial owner requirements
A new fact sheet to help businesses understand and comply with their beneficial owner identification requirements is now available
Media personality Adam Spencer headlines 2018 ASEAN-Australia Codeathon
Former breakfast radio announcer, television personality, author and an ambassador for mathematics and science, Adam Spencer, headlines a top line up of talent as emcee at the ASEAN-Australia Codeathon in Sydney from 14 to 16 March
AUSTRAC to host ASEAN-Australia Codeathon to combat terrorism financing
AUSTRAC, Australia’s financial intelligence agency, will bring together more than 80 future leaders in technology at the inaugural ASEAN-Australia Codeathon in Sydney from 14 to 16 March 2018.
2 February 2018
Are you a digital currency exchange provider?
Being a digital currency exchange provider means you are running a business that exchanges digital currency with money or vice versa.
None listed at this time
Operation Lansdowne special report December 2017
This special report details the findings and recommendations of a major IBAC investigation, Operation Lansdowne, into allegations of serious corrupt conduct relating to South West Institute of TAFE and Bendigo Kangan Institute of TAFE, and third-party agreements those TAFEs had entered into with TayTell Pty Ltd.
IBAC Insights Issue 14, 22 December 2017
Issue 14 of IBAC Insights
9 February 2018
IBAC Commissioner calls on public sector leaders to drive corruption prevention
Victoria's anti-corruption commission, IBAC, today marks five years' operation prompting the IBAC Commissioner, the Honourable Robert Redlich QC, to call on Victoria's public sector leaders to maintain a focus on driving integrity and corruption prevention and to take action when there is wrongdoing.
22 February 2018
Former City of Ballarat Council manager sentenced to jail following IBAC investigation
20 February 2018
Compliance and Enforcement Policy
The Compliance and Enforcement Policy sets out the principles adopted by the ACCC to achieve compliance with the law.
23 February 2018
2018 Enforcement and Compliance Priorities
Our enforcement and compliance priorities for 2018.
23 January 2018
Victims scammed via Western Union may get refunds
8 February 2018
Hyundai to improve consumer guarantees approach
15 February 2018
Criminal cartel proceedings commenced against Country Care and its managers
20 February 2018
20 February 2018
ACCC focusses on energy, broadband, net economy and financial services in 2018
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.
48 Guinevere Parade, Glen Waverly Victoria 3150 Australia
© Copyright Credit Matters 2005-2021, All Rights Reserved | Privacy Policy