Credit Matters Newsletter

 Back to Newsletters

Credit Matters
What's New At Credit Matters?

What's New At Credit Matters?

Shortly there will be a new free feature "Surviving the Recession - A Quick Review of 10 Essential Steps" available on our website

The attachments with this newsletter are from Credit Matters titled "What Does a Criminal Look Like and from Absolute Facts "What is Bugging You?". With cybercrime and fraud increasing, these brochures provide helpful advice.

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

A pessimist is an optimist in possession of all the facts.  Arthur Schopenhauer

Monthly Business Observation

Monthly Business Observation

In all business developments which must be managed in business, are those of risks and opportunities. We see these factors raised in all SWOT documentation when creating a new business, or when a redirection of the business is being considered.

Unfortunately, from this point of time, both factors are rarely considered in tandem when an unexpected risk or opportunity is suddenly exposed. When this situation occurs, often the focus is usually on one of the two factors, the risk or the opportunity.

When a risk appears, there is a failure to consider whether there is an opportunity to take advantage or learn something new from the risk identified. The overriding factor in this case is caused by the FEAR factor which dominates thinking, i.e. what is it going to cost or be lost.

Alternatively, when an opportunity occurs, the potential gain in dollars is considered as the primary factor and the risk factor is marginalised or ignored. In this case, all that is seen through “rose coloured glasses” are the DOLLARS to be made from the opportunity. The fact that risks might also be an ongoing factor is therefore often forgotten.

The reality of either our personal or business lives is that all risks offer opportunities and all opportunities include elements of risk. Concentrating on one factor to the exclusion of the other means that outcomes anticipated do not always come to fruition. There may also be negative and unexpected consequences as highlighted by Captain Solly after landing his plane on the Hudson River.

Today, in business we see that similar situations exist in the following business situations.

The focus on technology to reduce headcount and save on costs upfront, only to find that there are many downstream costs which were never anticipated or included in the costs of running the business.

The employment of “cheaper” and unprofessional people in the business which leads to many problems which would never have been created by employing professional and experienced employees.

Since COVID, we have come to understand the weakness of expanding or operating our businesses via cheap debt instead of keeping a cash reserve. As is currently experienced, this debt will not be so cheap in the future,

Thinking that a focus on technological methods to advertise our business is the only way to grow your business cheaply rather than developing personal referees, through free word-of-mouth endorsements, or networking is dominant.

The use of mainly technology methodologies instead of a mixture people and other methods, means highlighting your business’s differences from your competitors, is increasingly difficult. An excellent example are the banks with their race to digitalisation, which means that all banks are starting to look the same.

The reality that cybercrime is on the rise which seems to be increasingly difficult to defend against, and yet the focus by many businesses is to increase the use of technology processes.

In each of the above situations, and there are many more similar examples, the problems which have occurred are as a result of failing to respect the value of risk professionals and understanding risk is not just about negativity. Highlighting a risk can also led to wonderful opportunities to learn about how to make a more profitable business.

Monthly Business Conundrum

The debate continues on the value of cash in the bank. I suspect it always depend on your point of view. If you only look at and hear the negatives of cash, then you will succumb to these messages and fail to understand the value of cash.

To counteract the many negative messages about cash, the value of holding a reasonable amount of cash in your bank account(s) include:

  1. YOU manage your business unhindered by the needs of your creditors,
  2. there is no need to spend time filling in copious forms of paperwork, even if they are digitised, and the frustrating wait for the approvals if you need to borrow,
  3. interest rates for borrowings are increasing,
  4. you can take immediate advantage when negotiating for purchase of products and assets,
  5. in tough times, many bargains and opportunities will appear unexpectedly,
  6. offering to prepay bills and negotiate a discount for early payment,
  7. peace of mind that you can pay all expenses as they are incurred, etc.

The current focus on cash in your bank account is proving to be a life saver for many businesses, and peace of mind, the value of which cannot be underestimated. It goes without saying, the peace of mind that your business can pay its bills as they become due is truly valuable for all businesspeople. Having cash in bank also means there is no time wasting and emotional expense associated with borrowing to keep your business operating.

Monthly Business Conundrum
This Month's Business Inconvenient Truth

This Month's Business Inconvenient Truth

The “entitlement generation” is a major problem and one of the greatest debilitating factors facing all businesses these days. A perfect example is the current plight of restaurants where people feel they are entitled to book a table and then just don’t turn up. As a result, restaurants now believe they have the right charge a booking fee to protect their businesses.

Three factors which are becoming increasingly obvious are:

  1. the signing of payment agreements, and then the debtor ignoring these agreements,
  2. creditors are increasingly losing their rights,
  3. the willingness to commit fraud in the belief that on most occasions they, the perpetrators, can get away with it.

As any business which sells on credit can vouch, increasingly they are forced to make increasing numbers of contacts for payment of the outstanding invoices. Often in doing so, they find many of the resulting promises to pay are broken regularly.

In the case of lost rights, politicians and bureaucrats are increasingly finding ways to remove landlord’s rights, which as a result, sees fewer rental properties available for rent, or rent so high, few people can afford them.

Legal action is becoming increasing expensive with all sorts of interventions by the courts and do-gooders, means successful debt recovery is almost impossible for the average business. Hence, many debtors are committing fraud and basically getting away with much of it.

It is therefore, your responsibility to your own business, and as a businessperson, to adapt when dealing with the entitlement generation if you are to survive. A good example of adapting, is shown by restaurants which are charging a booking fee.

One of the developments post COVID is to see the increased advertising of businesses for sale, either by the owner or insolvency administrators. Many of these businesses will be an expensive trap for the unwary.

Updates courtesy of

Media Updates

Speeches and Articles

News Updates

Media Releases

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.

Read More

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.