Protecting your business with good documents might just be your last line of defense!

In today’s economy managing business legal risk is one of the most common challenges businesses face. This week Peter Aked from Eakin McCaffery Cox explains that there are two aspects to this:

Read the entire story at the Cash Flow Buzz – click here

Explains the importance of communicating with your creditors to ensure a healthy outcome for your business once you begin to reach financial stress and pressures to meet your financial obligations.

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About Rohan Youngman

Rohan holds a Bachelor of Economics and an Associate CA from the Institute of Chartered Accountants. He is a registered Tax Agent and a Fellow of the Taxation Institute of Australia. His accounting career spans 3 decades including Forensic Accounting, business advisory, and tax consultancy and investment management.

Visit the website at www.calabrosvconsulting.com.au

How do you keep your business going? Paul Sweeney from SV Partners gives some valuable advice (training video)

View entire article at the Cash Flow Buzz (click here)

Cash flow is a common issue in business. In this video I go into what factors in business impact upon cash flow and drive it through the business.

View the full story at the Cash Flow Buzz…Click here

Stephen is a partner for SV Partners in Sydney. Today Stephen gives us his views on business insolvencies and what types of financing options are available.

Debt Collection Techniques Book – Daniel Dunsford Director AR Cash Flow. Recently we put together a 50 page hand book on how to collect payments from difficult customers.

Download the ebook here: http://www.arcashflow.com.au/resources-cashflow/download-ebooks.html

This week we tap into this experience and look at ways to implement it into your business.

In this video David makes the following points:

1. All businesses must have systems and procedures for introducing new customers and systems for operating with those particular customers.
2. It is advisable to have some form of insurance against losing one of your major accounts unexpectedly.
3. You should look at your top ten accounts and try to give them a commercial rating. For most businesses they find that they know a lot about their top 2 or 3 accounts, but after these most times you don’t really know anything about your clients, this is the risk area. This is where you would have large or middle sized exposure to companies you don’t know much about. That is where trade credit can be very effective.
4. When you move into tougher economic conditions, and you don’t monitor your customer’s credit closely, you normally get a very large bad debt.  Very often that bad debt will have a very big impact on your company.
5. Anybody extending commercial credit should go through the basic perfunctory checks (meaning?), and they are checking that the company does exist and is incorporated, you should check that there are no adverse actions against that company and there are no adverse actions against the directors.
6. Once you have the basic fundamentals correct in terms of extending credit, then in this economic climate tread warily.  Hold back on the credit amounts for the first 3 or 6 months of dealing with a new customer. After this amount of time, if you see a pattern evolving of their ability to pay on time, then start advancing larger amounts of credit.