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Credit Matters
What's New At Credit Matters?

What's New At Credit Matters?

We are pleased to announce that our latest feature is now available on our website titled "The Human Sins of Technology in Business." This feature is available at the special price of $5.00 + GST until the end of this year.

I can also advise that my recent article "The credit manager as a futurist" has been printed in the AICM's October edition of Credit Management in Australia. A copy of the article is attached, or you can visit the AICM's website to read the magazine at

Other attachments with this months newsletter includes an information note about mental health from the Australian Small Business Family Enterprise Ombudsman, plus our brochure "What's a criminal look like" a really important message in today's world. As our brochure illustrates, criminals come from all walks of life. 

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

If we want things to stay as they are, things will have to change.

“the Prince” in Giuseppe Tomasi di Lampedusa’s novel The Leopard.

Monthly Business Observation

Monthly Business Observation

What we all want in business is a level of consistency that can be managed. Unfortunately, in the modern business world, nothing seems to be the same and change is constant. In such an environment, many businesspeople experience high levels of stress and feelings of helplessness.

The problem is therefore as follows. “What should we seek to keep the same and/or what do we need to change to maintain the viability of our business and retain a level of sanity in the strength of our own beliefs?”

The first place to start is reviewing your business’s cash resources and ability to obtain finance, if required. The fact of the matter is that a business without cash is doomed to a short existence and a lot of stress for the owners. Protecting your cash is therefore a priority.

Business finance is a double-edged sword as was discovered in the past, and will be equally so in the future. This factor is especially pertinent with interest rates on the rise. In addition, if your business extends credit, then increasingly, especially in the consumer finance area, and now also in the business world, creditors are losing all their rights.

Selling your products and services is another area for review and whether you even have to sell on credit at all should be evaluated. After all, there are other sales strategies available such as part-payments or for payment upfront. Creating the correct sales strategy under the right circumstances, even to the most high-risk customers, will be paramount.

Finding quality employees in sufficient numbers is an ever-increasing issue. Unless you are in a business with the ability to charge a price premium for your goods and services, employing people is an increasing risk as employees now seem to have more rights than employers. To overcome this problem a number of industries are using contractors, outsourcing or the increasing the use of robots.

Being aware of governments and their agencies, bureaucrats and do-gooders influences and their interference in how you operate your business, is another must. Whilst the intentions of these parties if often well meaning, their demands and actions can soon cripple a business with red tape and unviable demands. Worse still, these parties never guarantee that even if you adhere to their demands, they will buy from you.

In summary, cash resources, being aware and managing finance owed and owing, having appropriate selling strategies, employing people as appropriate, and being aware of outside influences which can ruin your business with their demands, is essential.

In order to manage the above, which are controllable factors, verses what cannot be controlled, requires a positive level of emotional and financial control by management. When achieved, management is in a stronger position to maintain the aspects of their business which have proven reliable in the past, and yet are also able to make the necessary changes to keep their business viable in the future.

Monthly Business Conundrum

It is fascinating to review the past and learn that all the business problems we have today, in particular slow-paying and fraudulent customers, are still present today.

With few exceptions, nothing much seems to have been done to counteract the behaviour of the above-mentioned customers. Why is this so?

There are several reasons including:

  1. a sales at all cost culture,
  2. bad management practices by naïve and/or manipulative managers,
  3. a refusal to learn from past mistakes and adapt accordingly,
  4. poor business disciplines,
  5. the thought that “… our business is different so the problems of the past will not affect us”,
  6. the access to cheap debt,
  7. social and business environments which have largely been built on wanting ever more, etc.

Today, many businesses are going to fail because of the aforementioned reasons. All of the above were the same factors that impacted on businesses negatively in the past and yet still affect us today. The question remains then:

“Why do so many of the negative issues of the past still affect us today?”

The answer of course is that we failed to learn from the past and act proactively to minimise their effect on our businesses today.

Monthly Business Conundrum
This Month's Business Inconvenient Truth

This Month's Business Inconvenient Truth

Historically, from the world of business, it was noted that about 10 percent of all customers would be completely honest, 10 percent would be dishonest, and the balance, 80 percent would only be as honest as you forced them to be.

Currently, especially in the world of consumer finance, the figures could be up to 10 percent honest, 30 per cent dishonest and 60 percent as honest as circumstances allowed them to be. In the business world, you will probably find the ratios something like 10 percent honest, 20 percent dishonest and 70 percent as honest as you force them to be.

On reviewing the above information, it is also essential to understand and manage the different types of customers and the levels of B2B debt you have with each customer type. After all, if the numbers of dishonest customers have large unpaid debts or are slow paying your invoices, this impacts on the financial sustainability of your business.

In light of the looming recession which seems to be an obvious outcome from the increasing interest rate rises, there are certain positive actions which all business can undertake. These include maintaining strong business disciplines, having available up-to-date sales solutions and contracts for different types of customers, plus creating variable sales strategies for customers with poor payment reputations and problems by processing invalid credit claims.

Knowing that a larger number of customers might have payment and financial issues moving forward, is an important factor. It is not just knowing this fact is enough, you need to be taking positive actions about minimising the effect on your business which is essential for the ongoing survival of your business.

In a world of constant change, your business’s trading terms and conditions are as important as are all the other factors of business. Therefore, ensuring these terms and conditions are relevant to each customer trading relationship is a critical factor of success or failure.

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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

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.