Published by Credit Matters Pty Ltd.
Welcome to Credit Matters Newsletter for October 2017. 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
This month I attended the AICM 50th Anniversary Conference in Canberra. It was a rewarding experience in helping to understand new developments which affect all business owners and their employees. The Conference was also another opportunity to network and meet new acquaintances and catch up with old friends.
A conference is always an excellent opportunity to gain new business insights. In the coming months, you will see a number of modern business concepts and thoughts presented via Credit Matters.
Advertising via Credit Matters
If you are interested in reaching business prospects who need your services or products, contact Kim to see what he can do for you. There are many different opportunities to advertise your business via Credit Matters and it may not be as expensive as you might imagine.
This month, you will find a brochure from CreditorWatch about Apply Easy, a repeat of one of the Bank Doctor's blog's about borrowers being aware , a reminder note from CMARS about their accounts receivable services, Investigator Upgrade and its investigative training courses and how ReConnect Finance can assist with your asset finance needs.
When do you say NO?
Every sales opportunity presents business people with the conundrum of whether to accept an offer to sell on credit or to decline the offer.
Many business people are afraid to say No because they feel are losing a sale. However, selling is never simple. The fact is that there are times when a business person simply has to say No because of the potential of a bad debt, the extended terms demanded by the customer, or an inability to supply due to lack of stock or time etc.
No is also an extremely powerful sales tool as demonstrated by Bernie Madoff.
The conundrum for every business person is therefore in understanding how and when to say No.
When your business suffers loss, one of the key reasons for the loss is that your employees did not complete specific actions which should have been completed. When basic, common sense actions are not completed before a sale, your business will probably suffer a loss.
The theme of this month's quote articulated the reality; it is the actions which we do or don't do today which will influence the results we experience tomorrow. When selling, particularly on credit, basic business actions need to be completed. In today's business environment, the most basic of actions include, completing due diligence, planning properly when commencing your business or in taking on a new customer, and then taking all necessary actions to maintain that relationship with each and every customer.
What happens in many business enterprises is a focus on selling. What is rarely given equal focus, is the payment in a timely and profitable manner. In other words, management has failed to understand and operate to two basic business truths:
(i) a sale is not a sale until the money is in the bank, and
(ii) a sale paid late often results in a loss. rather than a profit
When a bad debt or the profit on a sale becomes a loss situation, you will often find the causes include:
(i) a lack of due diligence to identify the customer's trading entity and ownership, whether they have a cooperative relationship with suppliers, their financial stability and payment reputation;
(ii) a failure to ensure a valid sale is actually made to the customer;
(iii) identifying whether they can supply the customer in a manner requested by the customer;
(iv) adequate customer service resources;
(v) not employing adequate numbers of professional credit and accounts receivable employees; and
(vi) the intellectual capacity to understand how to use the legal system, if required, to recover the business's assets.
When these situations exist in a business, it is often found;
(i) the trading entity of the delinquent debtor is different to what they projected and as a result, you are unable to either track them down if they skip or take effective legal action;
(ii) the customer stole your time, energy and profits because you did not identify the customer's cooperation reputation when interacting with other suppliers;
(iii) cashflow budgets are rarely accurate and cashflow was not adequate for normal business costs or growth, etc.
Selling is not without risk. The process of selling therefore must be designed and resourced in a manner to ensure all actions to complete the sale are completed properly. When the process, resources and actions to complete sales are not completed properly, this is where costly problems occur later and a loss is incurred.
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.
Disorganised or unorganised?
It is unusual for a word to be used with two different prefixes. Often people use the word unorganised when they really mean disorganised and it can be very obvious to others.
Unorganised relates to structure or a system. The data was unorganised. The staff were unorganised as they had not formed a union. Disorganised relates more to the current state, The person was disorganised.
To confuse things further, both words could be used in the same sentence. The person’s desk was disorganised. The person’s desk was unorganised. The use of disorganised implies the desk may have once been organised. The use of unorganised implies the desk had not been organised. We’ve all been there. Tight deadlines, lots of work, can result in a disorganised desk. A new job with a new desk, that is unorganised. Although keep in mind, sometimes using different words may be better for the reader. A new job with a new desk, that has not been organised.
For more information on the Preferred Australian English spelling visit www.Australian-Dictionary.com.au .
On Friday last week, the Public Works and Utilities Committee, the Queensland State Government’s committee tasked with reviewing the Building Industry Fairness (Security of Payment) Bill 2017 (BIF Bill), has tabled its findings in Parliament. Click here to read the report in full. In short the committee has recommended the Bill be passed with very […]
Australian competition laws
The most significant changes to Australian competition law in 20 years are soon to commence. On 18 October 2017, a number of amendments to Australia’s Competition and Consumer Act 2010 (CCA) passed through Parliament. The changes follow recommendations arising from the ‘root and branch review’ of competition law and policy commenced by the Federal Government […]
Introduction The United Kingdom’s Technology and Construction Court’s recent decision in North Midland Building Limited v Cyden Homes Limited  EWHC 2414 addresses a number of pertinent issues in relation to the prevention principle and concurrent delay. Namely: that parties can exclude concurrent delay claims by inserting express clauses into their contract; and how the […]
Cases involving social media giants such as Twitter rarely come before the courts, particularly those involving posts by anonymous users, so we were interested to read the decision handed down by Pembroke J last week in X v Twitter Inc  NSWSC 1300. The plaintiff company sought final injunctive orders against Twitter Inc and Twitter International […]
The Information Privacy Act 2009 (Qld) (IP Act) applies to the personal information handling practices of Queensland public sector agencies and their contractors, and contains two sets of privacy principles – the National Privacy Principles (NPPs) that apply to Queensland Health and Queensland’s Hospital and Health Services, and the information Privacy Principles (IPPs) that apply to all […]
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Keeping the right person for the job is extremely important. Keeping the best employees is even more important. Here are 3 important tips that will make your employees love coming to work!
Provide your employees with competitive benefits
Whether this may be providing employees with flexible work hours, health insurance or telecommuting, this shows that you are willing to accommodate all kinds of staff within your business. It also ensures that employees feel as if they are a valuable asset to the company and not just a number.
Conduct “Stay” Interviews
Like you would do with exit interviews, it can be valuable to ask employees who have been with the company for a long duration of time why they have chosen to stay with the company and what they like about it. This could be used to improve employee retention strategies and thus foster a strong corporate culture.
Foster Employee Development
Ensure employees skills and education are further developed and increased. This will not only boost performance but will also ensure a higher retention as employees can grow within the company.
We’re here to help. Contact Trace Personnel on 9218 5466 for all your recruiting needs!
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.
"The past is a thief, it steals the present & the future from us"- time to let it go, clearly no way back for me!“The future depends on what you do today” Mahatma Gandhi
"The past is a thief, it steals the present & the future from us"- time to let it go, clearly no way back for me!
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.
When a legitimately-raised invoice is not paid within terms - this THEFT.
In business, many people believe they are immune from legal reality when they sign credit terms with no intention of sticking to the agreed terms. Their misguided thought is that they are being "smart". The reality is otherwise.
The only time not paying a legitimate invoice on a timely basis which can be forgiven is when there is an honest mistake, the invoice was genuinely misplaced or events took place to prevent the payment within terms.
We have all lived and operated on the principle that a paying a few days late because of the timing of our payment systems is okay. Although it is not strictly okay, the commercial reality is that it is a recognised and accepted practice.
What is unacceptable, is the signing a credit contract knowing it will never be honoured or creating false credit claims to delay payment. This is theft packaged as smart business.
The problem is, times and business practices change. For instance, we have seen the change in the acceptance of cartel and bribery practices which are no longer deemed acceptable. One day, not paying invoices as agreed, may be also be deemed to be illegal.
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.
19 September 2017
The first international codeathon for financial intelligence units is being co-hosted by AUSTRAC and Bank Negara Malaysia from 18-19 November 2017 in KL, Malaysia.
The Federal Government’s financial intelligence and regulatory agency, AUSTRAC, has reported some record outcomes in its latest Annual Report 2016-17, just released.
The agency conducted 3,255 financial intelligence exchanges with international financial intelligence units (FIUs)—a significant increase of 89% from 2015-16.
11 Oct 2017 Blog
After months of industry engagement, we are thrilled to announce our finalists!
16 Oct 2017 Blog
AUSTRAC hosted a study visit from the Casino Regulatory Authority of Singapore in September
This report outlines the responses of local government employees following research into their understanding of corruption, their perceptions of corruption and misconduct, attitudes to reporting corruption and misconduct, and attitudes towards preventing corruption.
This report outlines the responses of state government employees following research into their understanding of corruption, their perceptions of corruption and misconduct, attitudes to reporting corruption and misconduct, and attitudes towards preventing corruption.
2 October 2017
Victorian state government employees say they have a sound understanding of what corruption is, but many are unsure how to report it, and a significant proportion fear personal repercussions if they did report it.
6 October 2017
Victoria's independent anti-corruption agency, IBAC, today published a response from the Department of Education and Training (DET) to two major IBAC investigations into corrupt conduct at the Department: Operations Ord and Dunham.
16 October 2017
Victoria's independent anti-corruption agency, IBAC, has published responses from a range of public sector agencies following several IBAC investigations into serious corruption and police misconduct.
9 October 2017
Honest advertising and selling practices benefit small businesses and consumers alike. Enterprising small businesses should be able to prosper on the merit of their products or services without fearing that competitors will gain an unfair competitive advantage from dishonest representations.
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19 October 2017
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.