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Credit Matters
What's New At Credit Matters?

What's New At Credit Matters?

As mentioned in the last newsletter for 2022, we took a small break in January and did not issue our newsletter in January.

As a result, we were able to fine-tune a number of small features and ideas for the future. I hope you have also been able to review your own business options and find new ways to promote and grow your business.

All the best for 2023

Kim is available to help with your questions and concerns if you need any assistance, and as always, the first chat is always free of charge or obligation.

Quote Of The Month

Quote Of The Month

“We want to improve our turnover use because you can’t live on stoppage,” - Lyon said.Ross Lyon – AFL Football Coach

Monthly Business Observation

Monthly Business Observation

In every recession or downturn that I have experienced, and there have been quite a few, one constant business factor has remained. Many of those businesses which had restrictive credit term policies, or a focus on one type of customer, soon took on all sorts of different jobs and customers. The reason; to survive in the long term.

Survival is a wonderful motivator to help businesspeople focus on the need to find customers and profits to keep their business alive and themselves in a job. In order to survive however, businesses need to change as follows.

1          Management will have to become entrepreneurs again and not just managers of a “static-bureaucratic-red tape” type of business.

2          Salespeople will have to become “salespeople” again and not just order takers.

3          Credit management professionals will have an increasing role in taking on more risky customers and more respect will be given to due diligence.

4          New innovative sales programs will be required, which will include cash sales, cash-to-credit incentive programs, part-payment programs, etc.

5          Communication and customer services of the best quality will need to established.

6          A WAR on identifying and fixing the causes of profit-robbing credit claims and slow-payment tactics of those customers which are adept at not paying within terms.

7          Business disciplines adhered to, and if changed for a particular customer or situation, a statement of why the discipline was overruled and the benefits for the business to warrant the change will be required.

In conclusion, no longer can a business rely on a static sales strategy program with strong defensive practices to eliminate bad customers and bad debts. There has to be an element of justified offensive strategies available to take on any customer which may lead to a profitable sale. Get this process right, and your business may not only survive the business downturn or recession, it may also grow to be a bigger and better business.

Monthly Business Conundrum

One of the intriguing dynamics of business today, is the diametrically opposite position by people about the value of cash. In many cases, the decision to remove cash as a payment medium, reduce savings and the cash at the bank whilst relying on digital transactions is based on short-term thinking, false suppositions and forced coercion.

The ongoing narrative that savings and cash in your bank account(s) is lazy, unproductive and a blight on expansion, is also a falsity. It is the one-sided sales pitches of people with negative and vested interests involving cash which cause so much harm when they are blindly accepted as “the truth”. Meanwhile, stories abound of families and businesses being in financial difficulties as we have already seen repeatedly in the media, due to a lack of cash.

The fact of business life today and into the immediate future, is that there is a place for both cash and digital payment methodologies. The wise and experienced businessperson knows this fact. A digital only payments policy is also discriminatory against the poor, the technology compromised and those without the capacity to travel to their nearest bank. These later factors will always exist to some extent into the future.

Briefly, the strategy of removal of cash as a payment method and as a reason to save will create the following problems:

  1. loss of sales to businesses which do not accept cash payments due to customers’ reluctance or inability to pay by card or digital means, or denial of service, or in areas with limited digital access,
  2. increased fraud against businesses and individuals,
  3. flaunting and greenwashing of ESG credentials and the bad publicity when greenwashing hypocrisy is exposed, and/or when the campaign grows against the digital payment only businesses
  4. the lack of opportunity to buy assets or take up special offers at a discount when they are available,
  5. banks kicking an own goal of relevance within the world of finance, savings and a safe place to store wealth,
  6. the continued growth of cybercurrencies and other payment methodologies,
  7. the lack of personal and financial safety because governments, big business and the banks have proven ineffective in protecting their constituents and customers from financial harm, etc.

As mentioned, it is the wise businessperson these days who understands the importance of having cash in the bank plus having digital and cash payment options for their customers. Many other business owners, and indirectly their customers, are going to find that a lack of cash and digital only focus payment options is going to cause grief at some time in their life.

Monthly Business Conundrum
This Month's Business Inconvenient Truth

This Month's Business Inconvenient Truth

Our professional marketing colleagues continually advise that a point of difference is one of the essential factors in creating a profitable business. More than ever today, communication regarding sales, customer service and payment or issues associated with outstanding invoices are of paramount importance.

Interestingly however, the larger the business, the less likely are its stakeholders will have to a positive communication experience. Telephone numbers are being removed from websites, and even if you find one, rarely is the phone answered without some long message about privacy and this message is being recorded etc.

Where there is an email option provided on a website, again, even if you send an email to many large businesses, there is often no response.

It would seem management of the above businesses do not understand what an important part communication plays in regard to selling, customer service and resolving issues regarding unpaid invoices. Rather. It appears that good communication is not treated as an intangible asset, but now as an expense. In this case, management is focusing on upfront expenses rather than efficiency and downstream costs.

Is it any wonder then, that customers are deserting big business and either taking their purchases elsewhere, do without, or adapt their needs to an associated product. In regard to issues related to outstanding invoices, the customer either doesn’t pay because of unresolved problems with invoices or they don’t pay because nobody contacts them.

The costs of poor communication are therefore many, a great deal of which, are hidden in the short term. Unfortunately, they often rear their ugly heads at the most inconvenient moments in the future.

Recently I read an article on the concept of building a customer profile for each customer. That makes a lot of sense. In addition, it would also be wise to create a supplier profile for each supplier.

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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.