Published by Credit Matters Pty Ltd.
Welcome to Credit Matters Newsletter for May 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
We have now produced our first flyer, a copy of which is attached to this newsletter.
In addition, Credit Matters is coming to the close of what we have called our Foundation period. When we set out on this journey three years ago, we were not sure whether there was a place for our business. After the past three years, we are now more firmly convinced then ever before, we have the basis of a valid and ultimately successful business.
Currently we have over 70 businesses and organisations listed.
Consequently, we formally advise that if you were offered a special deal to join Credit Matters and list in our Better Business Club, this offer may no longer apply after the 1st of July 2014.
If you are interested in taking up the previous offer, or have been contemplating joining the Better Business Club, now would be a good time to contact Kim to discuss options. As stated previously, I am always open to suggestions on how we can grow our respective businesses.
My apologies for the lack of new blogs in our Associates Blogs category. With everything going on, I have not been able to focus on this area this month.
Have you noticed the customer service conundrum which exists in many business organisations to day?
It seems that when the business has possession of their assets (the goods and services they sell), customer service is the mantra. Let us help our customers gain access to these assets so we can raise an invoice, is the emphasis.
However once the invoice has been raised and the customer has the business's assets, the story seems to change. It appears getting payment for those goods and assets which are now in the hands of your customer, is not so important. If for instance, the customer makes an enquiry about an outstanding invoice, the general approach seems to be; "We will deal with the enquiry when we have time!"
Alternatively, the enquiry is added to a list of enquiries received and the customer is advised "... to record the number of their enquiry and contact us again in x # of days if you have had no response."
Strange isn't it! When the business has possession of their assets, they cannot wait to hand them over to the customer. When the customer has the same assets, getting the money doesn't seem so important. Have you notice this customer service conundrum in your business today?
I would like you to review our quote of the month and take it to another level which is better suited for today's business world. "... nothing can be said to be certain except for death, taxes and motivated credit management or debt collection professionals."
The first two components of our monthly quote are a given; but credit managers and debt collection professionals? Where does this come from? That is easy if you consider what credit managers and debt collection professionals are paid to do: they contact people for money owed to others.
Credit management and debt collection professionals are a fairly easy going mob on a day to day basis. Furthermore, even though they are rarely given credit for it, they accept that part of their role is to help sell the business's products and services. Therefore when contacting their customers, they do so in a friendly and reasonable manner. They hope this approach will lead to a mutual respect between the two parties. A big ask maybe, however that should always be the case.
In addition, credit managers and debt collectors don't like confrontation with their customers. Experience has shown them this attitude does not always lead to the best outcome for either party. Unfortunately however, problems do occur when the customer-debtor does not want to accept and work through their financial responsibilities. In such situations, this is where our quote becomes relevant.
So at the end of the day, you can either work with the credit or debt collection professional, or against them. If you take the second option, you may find they become your worst enemy and you have a life-long companion you really don't want. Like elephants, a really good credit or debt collection professional develops a long term memory and they never forget a bad debtor.
So, how does this come about?
Credit and debt collection professionals are only human, despite what many people in the media portray or public authorities think. Therefore when the customer-debtor effectively thumbs their nose and belittles the professional person contacting them, there is a natural human reaction.
Consequently, the professional credit manager or debt collector when challenged, may well say "I will take whatever legal steps are allowable and financially feasible, to make this debtor pay for their debts." Furthermore, many professionals know they may not get one cent in return today from the debtor with such reactions. However that isn't as important as having the debtor pay for their debt(s). As we all come to realise, there is always a tomorrow and who knows what may happen tomorrow when the debtor goes to seek further credit!
Remember, I have made this statement within the following context - "... whatever legal steps are allowable and are financially feasible."
A truly professional credit manager or debt collector is always aware of which steps are within the law and which are not as acting outside the law is not only illegal, it is not profitable. The true professionals are also aware of the many other actions which are available to them at a very reasonable cost to achieve the same result.
There is no worse enemy in the commercial world than a slighted credit or debt collection professional with a long memory. Like a terrier with a bone, they will not let go until the debtor has paid for their debt(s).
It goes without saying therefore, if you are in business, it would be wise to remember, "... nothing can be said to be certain except for death, taxes and motivated credit managers or debt collection professionals."
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.
Our new Constitution is now established, and has an appearance that promises permanency; but in this world nothing can be said to be certain, except death and taxes.
—Benjamin Franklin, in a letter to Jean-Baptiste Leroy, 1789
THE LATEST ASIC UPDATES
Changes to ASIC Service Centres
From 1 July 2014, ASIC's Service Centres are transitioning to kiosk-based services for lodging online or dropping off documents to be sent to the ASIC Traralgon office for processing. 20 May
ASIC takes civil action against Astra Resources and its directors
We have started legal action against Astra Resources PLC (Astra Resources) and its directors, alleging the company illegally raised more than $7.6 million from almost 300 Australian investors between September 2011 and September 2012. 14-108MR. 21 May.
ASIC updates public comment guide
We have updated information on the circumstances where it will make a public comment on investigations and enforcement actions. 14-106MR. 20 May
Former Perth director jailed for providing false and misleading information
Mr David Alan Zohar, a former director of Aluminex Resources Limited, was sentenced today to 14 months in jail. 14-103MR. 16 May.
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.