Credit Matters

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Credit Matters
What's New At Credit Matters?

What's New At Credit Matters?

We continue to add new features and re-arrange others on our website as the world continues to change arrange us. Nothing stands still these days and we are continuing to learn and observe the changes in the global risk management profession as they impact on the business community.

The attached brochures this month include a brochure from:

(i) the Australian Small Business and Family Enterpris­­e Ombudsman focusing on seeking help if you are having financial issues;

(ii) Barry Urquhart on "Aiming to be non-competitive" which is an interesting concept on the importance of ownership of your own business:

 (iii) Credit Matters for tradies which may be of value for those tradespeople who are about to go in to business;

(iv) an introduction to CreditorWatch; and

(v) on "What is bugging you" which is all about the power of knowledge. 

Don't forget, if you wish to promote your business services at an affordable rate, you can contact Kim at kim@creditmatters.com.au. You will be pleasantly surprised at what we have to offer.

Quote Of The Month

Quote Of The Month

Lawrence Garfield: I love money. I love money more than the things it can buy. There's only one thing I love more than money. You know what that is? OTHER PEOPLE'S MONEY.

Monthly Business Observation

Monthly Business Observation

Lawrence Garfield was right, there is nothing better than other people’s money. In fact, business is all about getting hold of other people’s money through sales. That is the very basis of commerce.

There are many ways we can get other people’s money in business, and mostly it is via a respectable relationship between buyers and sellers. On occasions, credit will be extended by the supplier to the buyer to encourage extra sales. When the credit relationship is respected, suppliers are paid within terms and both parties are in a win-win relationship.

Over the years however, it has been found that not all buyers are respectful of the rights of the seller and so do not pay back their debts. At times, when circumstances warrant and because of unforeseen circumstances, the buyer’s unpaid debt has been forgiven.

In today’s environment however, it is increasingly obvious that many buyers do not respect their responsibilities to repay their debt or the right of the supplier to be paid when credit is extended.

To some extent, this is the fault of everybody in the business environment whose actions or inactions, have encouraged debtors in the belief that they do not have to repay their debts. Debtors now all too frequently get to keep other people’s money by illegal strategies, lies, or because they can without serious penalty.

As a result, when dealing with consumers, most commercial credit providers will no longer extend credit to consumers. Consumers now must pay upfront for goods or services, whether that be from existing funds or those provided by consumer credit providers. We also note this situation is happening more often in the commercial or B2B environment, where certain industries no longer extent credit to other businesses.

The problem for a business, which extends credit is that often people with little intention of paying it back, are already enjoying your money. In tough times, and it looks like they will get worse, many more people will target a business that extends credit. As criminologists point out, in good times people steal because they can, and in bad times, they steal to survive. As the times get tougher, those people with no intentions of paying their debts or your invoices, know they can enjoy other people’s money with little chance of having to pay it back.

Monthly Business Conundrum

The problem for those that always focus on cheap business prices, costs, or options, is that they rarely focus on value for money or peace of mind factors. I understand that for some people, the cheapest business input is the most important factor for them. The main issue however, is whether this policy is also the best one for their business?

I understand that not all business people have access to unlimited funds to operate their business, an issue I have come across operating my own businesses. However, I have always used the best products and services I could afford as my businesses developed.

When business people face the mantras of, there is always a “cheaper” way to operate, or you need “…to cut costs” there are problems which are not explained.  Afterall, these mantras rarely explain the ramifications of operating cheaper rather than effectively, or which costs can be cut, or should not be cut.

In following these mantras, it is also wise to consider the ramifications of your decisions and whether your business will actually be better off overall. After all, many business people do not realise that when you change a business process there will always be unforeseen ramifications which may have not been anticipated.

For instance, a good example is where you decide to employ inexperienced employees, or those willing to work for less. Inevitably, these employees are going to make more mistakes than experienced and committed employees. As a result, it is important to know whether the costs of increased mistakes that cost additional dollars to rectify, or the loss of sales because of the extra mistakes, have been factored into the decision? My experience is that they are rarely allowed for and therefore cause all sorts of future problems.

The answer as to whether cheaper business inputs are more expensive for a business, or add further value over the long term, will always be debatable. The answer really depends on management’s values and whether a cheap price upfront is more important than operational effectiveness and peace of mind over the long term.

Monthly Business Conundrum
Business Red Flags

Business Red Flags

The experienced business person, risk management professional, or credit manager have learnt over time that their tummy rumblings are a vital part of their decision making. On reviewing any new business proposal or credit application, or an extension to an existing credit agreement, when their tummy rumbles, they know something is not right.

I know it doesn’t sound very professional or scientific, but our tummy rumblings reflect things we do not always ’see’ at first. We have therefore learnt over time not to discount these rumblings. Rather, we take the time to reflect on why things don’t look right.

When we review new or changes to existing trading agreements, mostly we “know” straight away if we are going to approve the application, reject it, or ask for additional information. At other times, when our tummy rumbles, we have taken a step back and taken the time to think through the information provided. Inevitably when we take these actions, the right answer comes to us.

Word Of The Month

Is the spelling ANZAC, Anzac, or anzac?

The word ANZAC is an acronym for the Australian and New Zealand Army Corps. An acronym expectedly consists of the capitals for each word. Interestingly, we also have Anzac, which has an initial capital to refer to people, places, or other uses, other than the specific Corps. For example Anzac Day, Anzac biscuits and the Anzacs.

Spelling the word anzac using only lower case is a spelling error.

Interestingly, in Microsoft Word if you misspell ANZAC, the capitalised version will not be suggested, but only the version with the initial capital. In fact Microsoft Word will even autocorrect a misspelled capitalised variation of ANZAC, to be the word Anzac, with the initial capital letter.

Word Of The Month

Updates courtesy of www.asic.gov.au

Media Updates

Media Releases

Media Releases

How do you learn how to deal with the crooks and fraudsters? One source is to read the books written by them

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 info@creditmatters.com.au.

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 info@creditmatters.com.au for options.