Start-up businesses and FinTech operators can now easily seek advice on AML/CTF regime directly from AUSTRAC.
Published by Credit Matters Pty Ltd.
Welcome to Credit Matters Newsletter for November 2016. 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 are pleased to announce Credit Matters first Professional Development Award which will be offered in 2017. You must be a Member of Credit Matters to be eligible for the Award. More details can be found in the attached flyer and shortly, via our website at www.creditmatters.com.au.
Advertising via Credit Matters
If you are interested in reaching business prospects who may need your services or products, contact Kim to see what he can do for your business. There are many different opportunities to advertise your business via Credit Matters. The benefit of advertising with Credit Matters is that our newsletters only go to dedicated readers interested in financial risk management issues.
We are pleased to announce PS Law is a new member of the Better Business Club. They have kindly provided the attached article with a helpful note to all Advisers on their responsibilities in regards to the PPSA.
There also an attached flyer from The Kaplan Group which may be of interest if you are about to commence a business relationship in the US or have an existing debt with a US based business.
Dealing with bad customers is like drinking bad wine. It leaves a nasty taste in your mouth as you realise once again bad customers have cost you money, drained your energy and make doing business so difficult.
It is a theme we mention frequently in our newsletters and blogs: not all customers are of value to your business. Too often when our marketing and sales acquaintances tell us that "The Customer is King" we are forced to say, "Yes but, not all kings are good kings."
A theme also mentioned often, is that if you want to succeed in business, you must emotionally "own" your business. When you allow your business to be held to ransom, by other entities, including customers, then you do not own your own business. When this happens, you are generally on a slippery road to damaging problems, and potentially the loss of your business.
The problem for any business, is understanding how to do business. Yes, it is important to ensure you have what the customer needs, can supply their needs at an affordable price and deliver the best possible level of customer service. However, if you cannot achieve these goals without going broke, you don't have a business.
Dealing with bad business customers is therefore its own art form which is not often practiced these days. Part of the problem is the easy availability of credit and customer expectations that credit is now their right.
In addition, salespeople are encouraged to offer credit whilst selling on cash is often discouraged by management. The reality is; selling on cash takes much more work and extra effort to make the sale. In one aspect, selling on credit is all too easy and is now part of the problem and all too often results in bad customers.
Business was never easy, especially if you wanted to survive over the long term. Dealing with an occasional bad customer is unavoidable. Dealing with bad customers constantly, is no recipe for success. The secret of success is to identify those bad customers which are going to cost you.
It would be preferable if we could identify the bad customers before we granted them credit, but this is not always possible. The core principle is to learn to identify the bad customer before they cost too much, just as would buying wine. Bad customers are like bad wine, all you get is a bad taste in your mouth.
Word of the Month - The aim of Word of the Month is to share those many words used in Australian English which cause confusion. The confusion arises because there's often two spelling variations.
Is it doughnut or donut?
Now this is a tricky, or perhaps I should say, a sticky one. According to the Australian Macquarie and Oxford dictionaries, the spelling should be doughnut.
The problem is with usage in Australia, there is roughly a four to one ratio of donut to doughnut. Coles and Woolworths use the spelling donut, but Krispy Creme uses the spelling doughnut. Based on usage alone you’d have to go with donut, but it’s best if you stick with the guidance offered by the authoritative references and use the spelling doughnut.
For more information on the Preferred Australian English spelling visit www.Australian-Dictionary.com.au .
New South Wales has recently imposed a surcharge purchaser duty on foreign persons acquiring ‘residential-related property’. It has also imposed a surcharge land tax on foreign persons holding ‘residential property’. Broadly, the effect of the changes is that discretionary trusts that have even just one foreign person as a potential beneficiary are themselves treated as […]
PPS laws in Australia and other countries (100+ PPS laws and registers) can protect businesses and financiers if a key member of their supply chain becomes insolvent. Recently, our own experts in PPS (Peter Mills) and international insolvency (Neil Hannan) joined forces to advise the administrator of Hanjin Shipping Co. Ltd (Hanjin). Hanjin is one of the […]
In the recent decision of Queensland Building and Construction Commission v Marshall & Ors  QSC 200, the Queensland Supreme Court has determined that certifiers are not immune from recovery of payments made under the QBCC Statutory Insurance Scheme. Background Vynian Pty Ltd, the owner of land at Brendale, entered into a contract with Nolimit […]
Historically, Courts have been disinclined, in the absence of a negligent act of an organisation, to make the organisation liable for a deliberate wrongful or criminal act of its employee. The recent decision of the High Court in Prince Alfred College Incorporated v ADC  HCA 37 has provided some guidance on the circumstances in […]
On 25 October 2016, the Federal Court of Australia (FCA) published 26 new practice notes as part of the National Court Framework reforms. Amongst these is the Intellectual Property Practice Note (IP-1) which establishes guidelines for all current and future Intellectual Property matters in the FCA. The practice note updates and expands the previous practice […]
I had the pleasure of attending and also presenting at the Franchise Council of Australia’s National Franchise Convention 2016 in Canberra a few weeks ago. Excellent keynote speakers There were some excellent and inspiring keynote speakers such as Alex Malley, the CEO of CPA Australia and author of The Naked Ceo book and website www.thenakedceo.com, […]
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“Integrating and managing a contingent labour pool”
All businesses operating in the modern world faces volatility, uncertainty, complexity and ambiguity (VUCA). HR’s ability to recruit and hire good talent quickly to reduce labour costs will be an essential capability that all businesses should have a benchmark on.
This means that, all businesses should have implemented a workforce strategy to plan for unexpected labour needs, they should also look at closely integrating contingent labour with other talent management functions to be sure that they are ready when volatility comes knocking.
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.
Since our last newsletter, the following posts have been added to the Invaluable Reading From Australia and Around The World section.
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.
"Life is too short to drink bad wine" Annoymous.
Our ‘Inconvenient Truths’ are facts-of-business that too many owners and managers either aren’t aware of, have forgotten, or lost sight of. Symptoms of overlooked truths are increasing expenses, depleting cash flow, diminishing profits and/or lack of winning new business opportunities.
Email us at firstname.lastname@example.org to discover the ‘Inconvenient Truths’ and how they can redirect your business back to success.
It is not a smart business strategy to delay payments to your suppliers, particularly if you have the funds in the bank.
A debt owed puts your financial and trading relationships at reputational risk. Business practices today are ever evolving. One factor of change which is rarely properly acknowledged; paying your debts in a timely fashion is a reputational issue.
It is well known that what happens in the consumer environment, in time, influences what happens in the business environment. Already we see many organisations refusing to offer credit to consumers because it was almost impossible to recover consumer debts.
It is now noticeable many debt collectors are also finding it more difficult to collect business debts. It would not be surprising therefore to see the provision of B2B (business to business) credit may likewise be affected. In these circumstances, a sound financial and trading relationship reputation with your suppliers. will be essential if you are to obtain B2B credit in the future.
If you have the money, it makes no sense not to pay your business debts in a timely fashion. On the other hand, if you don't have the money, you should be activating positive strategies now to rectify that issue.
If you do not understand this Business Inconvenient Truth, contact Kim
To view the full list of Business Inconvenient Truths, become a member at www.creditmatters.com.au. Membership is free.
News From ASIC - Help with ASIC online services
Are you registering, renewing or cancelling a business name? Check out ASIC's new series of YouTube videos to help you use its business names register and other online services.
3 November 2016
Start-up businesses and FinTech operators can now easily seek advice on AML/CTF regime directly from AUSTRAC.
15 November 2016
Changes to the Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) Rules by Australia's financial intelligence and regulatory body, AUSTRAC, have resulted in an estimated annual saving of $28.1 million for Australia's financial organisations.
22 November 2016
The first ever risk assessment of money laundering and terrorism financing (ML/TF) in Australia’s superannuation sector has identified significant risks of fraud and cybercrime
24 November 2016
Today, a ground breaking Memorandum of Understanding (MoU) was signed between Australia's financial intelligence agency, AUSTRAC, and Jordan's counterpart, the AMLU
We have clarified the ‘safe harbour’ verification procedures for individual customers, including requirements around a customer’s ‘full name’.
AUSTRAC is working with the Australian Charities and Not-for-profits Commission (ACNC) and the Australian Taxation Office on a national risk assessment on charities and not-for-profit organisations.
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.