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Credit Matters
What's New At Credit Matters?

What's New At Credit Matters?

As is the norm for many businesses, we have been busy just working on improving our day to day operations, so there are no new developments this month.

The attachments with this newsletter are from RSM regarding their workshops on the 2023 CFE Exam Review Courses, plus Barry Urqhart’s article on the cost of shoplifting and shrinkage to business.

This is a timely reminder on the costs to business of what many consider a victimless crime and coincides with this month’s blog titled “There is no such thing as a victimless crime.”

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

“I always say: if Cashflow in King, then Customer Service is Queen, ya gotta have both to run a successful business” Jan Ross from Pathfinder investigations Pty Ltd.

Monthly Business Observation

Monthly Business Observation

The value in this month’s quote is understanding that cash and great customer service are an essential part of the sales process, which in turn helps in creating a valuable business. These two factors also play an integral role in achieving maximum profitable purchases and sales. In addition, these factors help to minimise waste and unnecessary costs, which is nothing to be sneezed at either.

Having the cash to meet your business’s needs as they are required or fall due, helps maintain the image of a successful and quality business. In tough economic times, this image may mean the difference on whether your business is supplied with essential services in a timely manner.

From another perspective, having the cash to pay for due diligence services and the time to validate the creditworthiness and payment or serviceability history of your stakeholders is paramount. After all, there is no value in dealing with suppliers which cannot supply your business needs as required, or a customer which doesn’t pay.

Having a positive and well-resourced customer service image is also an essential survival and growth factor. After all, if a customer or supplier believes somebody will respond more quickly, and they will spend THEIR time and money to contact your business. If there is any lack of service or response to their enquiry, potential and actual customers may well decide not to bother contacting your business again. This means YOUR business pays for the contact with its time and money.

It is a sobering thought that in a time poor world, there are many pressures which afflict us all. Therefore, any time or money you can encourage your stakeholders to spend rather than your business, is a money winner for your business.

It also goes without saying, if you don’t answer your customer’s sales enquiries, you will probably lose another sale, or even worse, a profitable future customer.

In the case of unpaid invoices, they may remain unpaid because you did not answer a simple customer enquiry about an invoice. Alternatively, the invoice was full of problems and possibly future credit claims issues which had remained unreported or not actioned by your business.

Too often, in either situation, management and sales have not acted on these issues. It may be because emphasis has been on future sales, and the people involved are not, or have not been held accountable for past invoices with problems, or which remain unpaid. It may be that they have also forgotten the truism; “… a sale is not a sale until the money has been in the bank for six months and one day after receipt.”

In today’s economic environment many businesses are struggling for sales or supplies. Most businesses also have a strong focus on reducing costs. The best way to maximise profitable sales is to understand the need for a timely supply from your suppliers and to receive payments from your customers as specified by agreed terms of trade.

The best way to achieve these outcomes is by having the necessary cash to operate your business properly, which is enhanced with a great customer service ethos.

Monthly Business Conundrum

One of the most interesting aspects of today’s modern business environment is that in the rush to digital perfection, it is often forgotten that your customer is always a person.

It goes without saying therefore, as each person is different, so is your customer. Your customers therefore may be:

  1. digitally focused and have no problems with digital payments systems,
  2. will always be digitally challenged,
  3. willing to use digital payment methodologies, if they feel safe,
  4. others will want to pay by cash, for any number of valid reasons,
  5. a “people person” and need to speak with a person within your business,
  6. time poor and cannot wait for an answer whenever it suits your business,
  7. easily discouraged from buying, paying an account, or even investing in your business because they don’t trust digital payment systems,
  8. easily angered and vent their frustrations on your website and via social media,
  9. talk in private about the perceived or actual shortcomings of your business,
  10.  buy from your competitor, or fail to pay your business for outstanding invoices etc.

When you review the operations and websites of many businesses however, it is obvious that the concept of the customer as a person is soon forgotten. Get that concept wrong and you may find that sales, customer enquiries and payments are lost.

For instance, I cannot count the number of times I have failed to transact with a business when I felt unappreciated, could not get an answer quickly for an enquiry or to answer a problem, or felt digitally unsafe. Respectively, I suggest I am not the only customer which has walked away from these businesses, and just maybe, it was your business!

Monthly Business Conundrum
This Month's Business Inconvenient Truth

This Month's Business Inconvenient Truth

There is a great deal of evidence these days that the formal process of KYC is a positive risk management factor for all businesses. It may be your business is of a type and size that does not warrant such an exercise. The fact is however, completing a due diligence exercise in a format suitable for your type business is always time well spent.

After all, it is no use saying, “I wish we had known this customer was bad”, after your business has been left with:

  1. unpaid invoices,
  2. a large number of  unresolved credit claims,
  3. won a legal action only to find they still cannot or will not pay you,
  4. lost expensive legal action, or
  5. they have become insolvent or bankrupt, and/or you received a preferential preference payment request from an insolvency practitioner, etc.

In addition, it’s now increasingly obvious these days, that creditors of all types are losing their rights. Furthermore, if creditors do try to enforce their rights, it is an extremely expensive exercise with no guarantee that even if they win, they will be paid.

In light of the above, today there is no reasonable excuse for not completing some form of basic KYC exercise before dealing with any customer, especially when extending credit.

Let’s talk Recession! After all, why not, as everybody else seems to be talking about it!

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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.