Credit Matters Newsletters

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In addition we are no longer displaying our Associate Blogs section. Instead, we are excited to announce a new section, Interesting Blogs - Newsletters. This new section is designed to bring the best range of information and interesting ideas to our stakeholders.

We would love to hear from you in due course once we have added more content to our Interesting Blogs - Newsletters section.

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If you are interested in reaching a wider group of business prospects, contact Kim to see what we can do for you. For instance, you will note the attached flyers with this newsletter from:

Holley Nethercote which have issued a press release on how they are assisting a company launch an application for a Bitcoin Exchange,

The A.I.P.I. have a very interesting Conference in September, and

Investor Upgrade is running two new courses in September.

Management requires the Credit / Accounts Receivable department produce a cashflow budget target which they are expected to achieve. Such requests are a normal part of business.

History suggests however, management and the sales department may then sabotage the Credit / Accounts Receivable department's ability to achieve their budget target. The sabotage may not be intended. However when decisions are made to protect management and the sales department's images and budgets, this is a natural result.

The tell-tail signs of sabotage or unnecessary interference can be seen when the Credit / Accounts Receivable department fails to achieve its cashflow budget on a regular basis. In such situations, when the cashflow budget is at the mercy of decisions made by others, what is the point of calculating a cashflow budget target at all?

The recent exposure of Rolf Harris, Jimmy Savile and Lance Armstrong, reveals there are people in society who are very different from their public images. The truth was very different for these individuals as they were really just wolves in sheep clothing looking for prey to satisfy their needs.

We also see other examples of wolves in sheep clothing which are reported in the media. A good example would be the stories of financial planners from reputable organisations who are caught misleading their clients. From time to time, we see stories about so called reputable people within their religious and ethnic groups, which have been caught ripping off friends. Recently I also read about those businesses which were masquerading as charities to take advantage of peoples' good natures.

In the business environment, we see similar examples of people who are just wolves dressed as sheep. These people could be masquerading as solid employees, suppliers and customers. When we interact with these people, sales and purchase fraud occurs, trusted accountants and bookkeepers are caught defrauding the business and salespeople steal customer lists to start up their own business. There are many more examples of this type of behaviour which we could present if time only permitted.

So how do we expose and identify these people in the business world, and preferably, before doing any business or engaging them as an employee?

There are a number of relatively simple actions which can be taken. However if action is to be taken properly, you must understand and come to grips with the fact: "Money influences peoples' behaviour, and mostly in a negative way."

Such negative influence can be seen when a loss is discovered and we ask how and why did this happen? For example, you will often hear the following excuses from those caught and then questioned.

(i) A friend will say, "... well I wasn't really stealing from a friend, it was just business!"

(ii) A supplier or customer will say (not in words, but in action), "... well that's just smart business and besides, they gave us an opportunity to steal from them."

(iii) The employee will say, "... I needed the money to fund my lifestyle, drug or gambling habit" or "... it was an entitlement for good service" or "... it was for revenge" or "... because I got away with it once and so tried it again" or "... there were no controls to stop me" etc.

What these excuses tell us, you need to accept the concept of how money influences people's behaviour, even your own, in business. Once you understand the concept, you can take action to reduce the chances of doing business or employing a wolf dressed as a sheep.

So let us assume you accept the fact you will encounter wolves dressed as sheep in your business endeavours and money DOES influence peoples' behaviours. What to do next?

1  Undertake due diligence when deciding to take on new suppliers, customers and employees.

2  Accept  due diligence is an investment in the foundations of building a viable and long-term business, and not just an expense.

3  Have procedures and systems which show up irregularities in business operations, and then investigate the irregularities.

4  Employ people under conditions which accepts some people will not always be honest and if required, prosecute them for any dishonest behaviour.

5  Publicise any irregularities found and the outcome of any investigations.

6  When employing people do so under the best conditions available and reward them for any special achievements.

7  If you do not have the skills and knowledge to manage the aforementioned situations, employee the right people who can help you.

At the end of the day, you can blame others all you like for their bad behaviour which leads to your loss. The truth is however, the problem on most occasions, rests with you as a business owner or manager.