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What's New At Credit Matters?

What's New At Credit Matters?

The new feature "Why Australia's Recession Will Be Worse Than it had To Be" is now on the website.

There are also brochures from the Australian Small Business and Family Enterpris­­e Ombudsman on the lack of insurance policies for small business. This situation is likely to have a profound effect on many which may have to close their doors; a factor all suppliers should be aware of when offering B2B credit.

There are also details of RSM's next fraud course which may be of interest to investigators and others wishing to upgrade their skills and qualifications.

We have also added an older feature by Barry Urqhart, which provides an important reminder about the social responsibilities of all businesses from a marketing perspective, irrespective of economic conditions. 

Finally, but not least, Credit Matter's own feature "What's a criminal look  as a reminder that fraudsters are always a problem, and even more so in a recession.

Don't forget, if you wish to promote your business services at an affordable rate, contact Kim at You will be surprised at the value we have to offer.


Quote Of The Month

Quote Of The Month

“Everybody talks about a new world in the morning. New world in the mornings so they say. Now I, myself, don’t talk about a new way in the morning. A new day in the morning, that’s today.”

Roger Whitaker’s song, “A New Day in the Morning”

Monthly Business Observation

Monthly Business Observation

Too many businesspeople and managers procrastinate, put off acting sooner rather than later and believe they can wait until “tomorrow”. However, this morning is already yesterday’s tomorrow.

There is no doubt, hastening slowly at times is the best process for complex issues, or if you do not have a good feeling about moving forward on a particular project. However, a decision must be made at some stage, because doing nothing is as fatal as moving in haste.

In today’s fast-paced business environment, even in this recession, events which may not be visible, are still moving rapidly around you. Furthermore, do not be fooled by government handouts, or debt moratoriums that you can wait around and do nothing until they end. The reality is that a great deal is happening all around you, and time as they say, does not wait for anyone. For example, if:

  1. you owe others, interest is increasing and time to pay the debt is running out;
  2. you are owed money from B2B credit sales, your ability to collect is compromised, and
  3. your customer becomes insolvent, the period to avoid preferential payments is also running out;
  4. your customer may be trading insolvently, or is a zombie business, which can only last whilst government handouts, debt and rent moratoriums exist, and slow paying debtors are tolerated;
  5. you expect that your competitors and industry disruptors are also doing nothing like you, which is highly unlikely, etc.

The factors of business where this situation is most critical are in sales, accounts receivable and customer service. For instance, customers now expect almost immediate responses to sales enquiries, identifying when products and services can be delivered, processing invoices correctly and within time, plus quickly following up unpaid invoices.

If there is any lapse or mistakes with these processes, you can expect to lose the potential sale outright, or a late payment. These days, delays in getting paid could well be fatal if your customer is no longer viable or insolvent.

In Summary

Too many businesspeople and managers procrastinate, put off acting sooner rather than later, and believe they can wait until “tomorrow”. However, this morning is already yesterday’s tomorrow.

In today’s fast-paced business environment, even in this recession, events, although not readily visible, are still moving rapidly around you. Furthermore, you cannot wait around and do nothing until government handouts, or debt moratoriums end. The reality is that a great deal of business is happening all around you and time as they say, does not wait for anyone.

Therefore, to do nothing or just drift along as your business did previously, is a recipe for disaster which may lead to the demise of your business.

Monthly Business Conundrum

One of the interesting aspects for all CEOs or CFOs these days is finding a business position which is a good challenge and provides them with an opportunity to prove themselves and add to a positive reputation to their resume. Unfortunately however, there are going to be large number of businesses opportunities they should not go anywhere near, unless they have a death wish, or they can turn a negative into a positive.

There are a large number of basket case or zombie businesses today which are likely to fail and which are going to destroy, or at least set back the career of many a prospective CEO or CFO. A number of these prospective managers will go in blindly for the money, the chance to succeed, or are just desperate for a job. The short-term benefits will soon be outweighed by the nature of the job and the potential destruction of their careers.

However, there are businesses which can be saved although they may be deep in short term trouble, there are enough positive factors in the business to warrant the risk. For instance, the business has a good reputation, a positive corporate culture, professional and committed employees, a good product or service range, a reasonable existing and potential customer base, and possibly committed investors, existing or potential.

There are no guarantees of success in business. With a good range of positive factors, anything is possible with the right attitude and support.

One last point is important however, even when taking on these businesses. It is the willingness of the CEO or CFO to listen to others, being adaptive, and using the role as part of their on-going professional learning.

Furthermore, the CEO or CFO must never forget the age-old practices of good business. Even today, the core principles of business have not changed. As we have already seen to date, the demise of those businesses which did not survive the recession are testament to the value of these core business practices.

Monthly Business Conundrum
This Month's Business Inconvenient Truth

This Month's Business Inconvenient Truth

The world has changed over the past 12 months and so has doing business. The old ways of selling may no longer be valid or appropriate. What we do know from recent times, is that many salespeople are afraid to say no and / or afraid to pick up a telephone.

We also know, the problem usually stems from management which have;

  • created a climate of fear if impossible budgets are not achieved;
  • always impatient for immediate results;
  • employ professional salespeople and then do not trust them;
  • employ unprofessional salespeople and wonder why they cannot “sell”;
  • failed to train and educate their salespeople properly;
  • failed to provide adequate resources, especially in back-up customer service resources;
  • failed to encourage their salespeople to liaise and work collaboratively with the accounts people; etc.

Today, the art of selling, and getting paid, is a whole new ball game. A business needs salespeople with people experience, great product knowledge, a positive customer service ethos, willing to engage with accounts and the resources to do their work efficiently.

A business also needs salespeople with the ability to say NO and then still sell, plus a willingness to visit a customer, or pick up the telephone. As a side issue, it may be that the salesperson who is not willing to visit or speak with their customer, has also done something wrong by the customer and doesn’t want to front the customer and be held accountable.

There is expected to be an increase in insolvency administrations in 2021 and 2020 due to the recession and the removal of government assistance. ASIC has provided insights which are designed to assist directors understand what will happen if their businesses become insolvent

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.