Published by Credit Matters Pty Ltd.
Welcome to Credit Matters Newsletter for January 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 our first feature Monthly Business Conundrum we discuss the concept of business disciplines. Business disciplines are introduced for a reason as they help everybody in the business understand and operate within the risk dynamics of their business.
However, are business disciplines always sacrosanct? In my view no, because too greater an emphasis on the discipline can at times, hinder the development of the business. Small variances with the risks calculated properly can be taken from time to time to win a deal.
However, when business disciplines are wilfully ignored, large losses and penalties can occur. No where do we see a greater conflict occur in the commercial environment than between the sales and credit functions when disciplines are not managed properly.
The recent reported situation at last year's Magic Million sales is a perfect case. It was reported, the eventual winner of the auction for Black Caviar's younger brother "Jimmy", was allowed to continue bidding for the colt, even though he had exceeded the credit limit set by the business.
Obviously, the business managers were hoping to create a better sale price for the horse. The problem as we now know, the winner of the auction could not pay.
To add insult to injury, the horse was never paid for and has died. Now an additional problem exists, nobody is sure who is entitled to the insurance money.
The lack of sales discipline happens daily in the commercial world. Mostly, the end result is not as dramatic or so widely advertised as in this case. However the losses continue and unfortunately, rarely are the lessons of ignoring basic business disciplines learnt.
Article - "Losing the Edge" by Patrick Bartley and Ben Butler, The Age 4th of January 2014.
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.
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.
“It is a bit like extracting teeth from a chook!" an old Aussie quote I believe.
THE LATEST ASIC UPDATES
ASIC LAUNCHES ONLINE HUB FOR SMALL BUSINESS
Small business owners and operators have a new online hub to help them better understand their legal obligations and the role of the Australian Securities and Investments Commission (ASIC).
The hub, which is available at www.asic.gov.au/small-business, features information on starting and closing a small business, legal requirements for small business operators, one minute guides on popular topics and access to ASIC’s new quarterly small business eNewsletter.
Latest updates - Business names
Recommended browsers for ASIC Connect
ASIC bans key person and responsible manager from Melbourne credit business
We have banned Mr Anthony Bergin from engaging in credit activities for 3 years after an investigation found his company submitted seven home loan applications worth $3.2 million to a lender that contained false or misleading information, including false payslips. 14-011MR. 23 Jan
NSW man fronts court charged with $260,000 fraud
William John Jones, 61, of Blue Haven, New South Wales, appeared in the Downing Street Local Court in Sydney today charged with fraud offences, following an ASIC investigation. 14-010MR. 21 Jan
Brisbane company fined for failing to lodge annual reports with ASIC
A Queensland digital news company has been fined for failing to lodge annual reports with ASIC over a four year period. 14-008MR. 20 Jan
ASIC accepts enforceable undertaking from Tru Blu
We have accepted an enforceable undertaking from Tru Blu Collections Services Pty Ltd for engaging in unlicensed credit activity.14-005MR. 9 Jan
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.