Small Business credit_small.jpg  Credit is at the heart of every successful small business.  Both accessing credit from suppliers and lenders and providing credit to customers are crucial small business management tools.  Here you will find information on how to manage your own credit policies as well as how to figure out what credit products are right for your business.
Risky business
The ability to identify risks to your cash flow ahead of time is a key factor to long term business success. Find out how to avoid the common mistakes, identify the risks and increase the cash flow to any business.
Understanding bankruptcy
Bankruptcy is commonly understood as the state of financial insolvency in an individual or a business. If people are unable to reach a formal or informal agreement to repay their debts to their creditors then they can proceed with bankruptcy. In Australia, the law provides protection for the borrower, if they are unable to repay your debts. It also allows them to present a feasible solution to creditors.
Making smarter credit decisions: the bigger picture
In a volatile financial world, making credit decisions can be fraught with uncertainty. Companies are often caught in financial situations that can be difficult to identify by traditional means. Credit providers need the whole picture to make informed decisions to mitigate risk in their business.
Common credit traps
Being a small business owner it's highly likely you run a business which relates to something you are passionate about. As a consequence, you probably don't have a background in credit management and, if your operation is quite small, you may not have a dedicated resource specifically for this purpose. For those of you in this situation, there are many traps and pitfalls you need to be aware of.
Selected tendering reaps better recovery rates
Many businesses are unaware that the way in which you select a debt collection agency and the terms under which you appoint them, influences the way you receive debt collection services. Businesses should opt for a selected tender process as opposed to an open tender process in order to receive better recovery rates.
Partnering with your customers' payment processors
The difference between getting paid promptly versus 10 or 20 days late may not be liquidity problems or intentional holdups. Instead, it's often bottlenecks and fumbles within the customer's payment processing system. A successful strategy requires not only a good overview but the diligence to deliver on its promise.
A how to guide for providing credit
In most businesses, the extension of trade credit is a common element of client relationships. It can serve as an effective way for generating regular business and building loyalty among your customers. If customers do not abide by your payment terms, however, trade credit becomes fraught with risk, exposing your business to bad debt and eating into your cash flow. The following tips will help identify the red flags before providing prospective clients with trade credit.
Keep clients who cannot pay at bay
Over the past year and a half the shake-up of the stock market has sent shock waves through the business community, leaving more than a few companies struggling to stay afloat. In light of these uncertain times, now more than ever the ability of your customers and suppliers to pay their accounts on time requires careful management and attention.
Business credit - the myths vs the reality
Being a small business you may believe that your credit profile isn't all that important. You may believe that a credit profile only matters for    large businesses and isn't really an issue of concern for you. Don't be fooled, your credit profile is critical you your business success.
The dos and don'ts of extending credit
As a small business owner it is your aim to make it as easy as possible for your customers to purchase your products and services. In most cases, this means you will accept credit cards as a form of payment - you may also extend credit terms to your customers. While extending credit to your customers is like offering an unsecured loan, it's a risk most SMEs are willing to take as it is simply seen as providing goods or services in return for a promise to pay.

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