risk

Contributed By: Mike Phipps Finance

Mike Phipps Finance

Everything we do as humans carries some form of risk. Stay in bed, grow fat and have a heart attack. Go out exercising on your bike and get hit by a bus. Eat and drink what you love and end up with high cholesterol. Watch your diet and feel miserable. It’s all about risk and more importantly a couple of key dynamics that are worth considering and they go hand in hand. The first is Risk Mitigation. We hear the term all the time, mostly when politicians or stockbrokers are talking. This is a pretty simple concept. Consider a risk and then look for thingsRead More →

crystalBall

Contributed By: Mike Phipps Finance

Mike Phipps Finance

Ok, I’ve said this every year but just to keep my 100% record intact………………..where the hell did 2016 go? Time just seems to fly doesn’t it?  It’s obviously an outcome of encroaching old age and certainly a reminder to enjoy life and not sweat the small stuff.  And let’s face it, in the overall scheme of things its nearly all small stuff. As usual I have made numerous resolutions with reduced alcohol consumption, a better diet and more exercise high on the list. I have also promised myself to appreciate the managing director more and not be such an egotistical, self-centred narcissist.  Not sure whereRead More →

ledge

Contributed By: Mike Phipps Finance

Mike Phipps Finance

Human ambition is an interesting thing. Even while confronting the terror and stress of a new role or business venture many of us are already thinking about the next step. I reckon it’s all part of our innate survival instinct ingrained into us as a species. I’ll bet that even while our distance Neanderthal cousins were dragging that Brontosaurus back to the cave they were already planning the next hunting expedition and perhaps some improved techniques and a more effective and efficient conquest. All the better to improve ones lifestyle and avoid the risk of becoming dinosaur poo! This thirst for improvement and the nextRead More →

bad-Payer

Contributed By: Real Strategix

Real Strategix

I am going to touch on a subject that relates to everyone on a daily basis. As business owners, do we name and shame customers that cost us money? I don’t care what business you operate. I guarantee all of you have at least one customer who believes they are better than you and everyone else. That one customer will simply refuse to pay for services/products rendered. We have quite a few! It is very hard to sit back and watch while they keep trading with their big franchise name knowing that the smaller operators cannot afford the legal fees or resources to fight them. It isRead More →

first

Contributed By: Real Strategix

Real Strategix

End of Month is called end of month for a reason ….to pay everyone at the end of the month. As a trust account trainer the most common question asked is “when do I do end of month?”. Some people are adamant that it should be done on the last day of the month as “that is the end of month” …others think it should be done on the first day of the month to include all of the transactions for the month prior; even if it is a weekend and others think that it needs to be done on the first business day ofRead More →

loanFinance

Contributed By: Mike Phipps Finance

Mike Phipps Finance

In our last bulletin we talked about our view that we are moving into a tighter credit environment in which bank lending guidelines will become stricter. We also talked about challenges existing borrowers are having with annual business loan reviews and extended interest only periods. The reaction to this bulletin has been remarkable with many business borrowers expressing concern around a range of experiences they are having with their lender. To be frank some of the concerns raised with us are of the borrower’s own making and reflected a lack of understanding of the terms and conditions of the loan. In many cases we haveRead More →

denied2

Contributed By: Short Punch & Greatorix

Short Punch & Greatorix

Some time ago I published an article on what I thought was reasonable for a Body Corporate to request from a buyer of management rights, in considering whether or not a Body Corporate committee should consent to the transfer of management rights agreements to the buyer (See the original article here). This is an important issue, because under the Body Corporate and Community Management legislation, a Body Corporate committee must not unreasonably withhold approval to a transfer. Under the legislation, one of the matters which a Body Corporate committee may have regard to is the financial standing of the proposed transferee. My opinion as expressed in my previous article wasRead More →

value2

Contributed By: Mike Phipps Finance

Mike Phipps Finance

In our business we spend a lot of time with new clients as they go through the journey of discovery that leads to the decision to purchase an accommodation business. That process can take weeks, months and sometimes years. Because we don’t charge fees to clients we certainly hope that one day they borrow some money and we make a few dollars. However, we have a duty of care to put the clients’ interests rest and if that means helping them to not make a bad decision then so be it. At some point in our work with new clients a suitable asset will beRead More →

financePre

Contributed By: Mike Phipps Finance

Mike Phipps Finance

Back in the day when I was a bank manager one of the marketing strategies the banks employed from time to time was pre-approved finance for home buyers. Basically we collected information from the client and gave them a letter saying they could borrow up to a certain amount subject to a formal finance application and a full credit assessment. The letter was not a finance approval and carried no obligation on behalf of the bank. In other words it was pretty much useless except that it did give potential home buyers an idea of their likely maximum loan and therefore what maximum purchase priceRead More →

zefpos

Contributed By: TheOnsiteManager

TheOnsiteManager

According to consultancy firm Capgemini and Royal Bank of Scotland, Australia has the 4th highest rate of non-cash payments on earth, increasing by 7 percent per year. According to the RBA, the average surcharge for Visa / Master Card is 1.9% and 2.9% for American Express. The implications of this, for a business operating on a 10% margin, are staggering. They’re essentially sacrificing 20-30% of their profit just to receive payment. For a motel operating on a 30% margin it’s around 10%. These costs are often simply accepted as part of doing business, but it’s only going to get worse from here. Seemingly overnight, tap-and-go services have become ubiquitous and withRead More →