The World Cup 2010 and the organisation of a business
22/07/2010
I was waiting keenly for this year’s World Cup for two main reasons.
Firstly, it was being hosted in the African continent for the first time, where, in my opinion, the African countries are taking this game seriously and are playing good football. Hence, they deserve it.
Secondly, I couldn’t wait to admire the individual players who are renowned for their thrilling football actions. Those players coming from all over the world, who we usually follow them playing for big European football clubs such as Inter, Barcelona, Manchester United, Bayern Munich, and the rest.
After a whole month of football, the World Cup tournament is now over. Football supporters returned to their respective countries, leaving the South Africans in peace and better off. Thank God, the annoying sound of the vuvuzelas has gone silent. The Spaniards are enjoying the World Cup trophy. But many people like me are still disappointed at the poor performance of the renowned football stars.
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Payment is in the Post!
01/07/2010
“Late payment is a major concern for Maltese businesses. Statistics recently compiled by MACM - the Malta Association of Credit Management - show that although cheques returned unpaid are decreasing, thanks to the due diligence by the local banks, overdue accounts are on the increase. This scenario may affect the cash flow of businesses to the detriment of the Maltese economy at large.
To assist its members, MACM conducts a regular exercise across all industries to determine the DSO of every industry in Malta. The DSO Ratio - Days Sales Outstanding Ratio - is a tool widely used by businesses in all five continents to measure the performance of the credit management function. It represents the average time taken by customers in settling their invoices due to their suppliers. Hence, it is a good financial ratio for businesses to benchmark their credit performance with that of their respective industries.
The DSO Ratio varies widely from one industry to another and Malta is no exception, with 49.5 days for the telecom industry up to 179.3 days for the industrial equipment industry. The average DSO of the local market as a whole is 78.5 days.”
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Managing the Credit Function in Today's Business World
20/05/2010
To grant and manage credit is expensive and carries risk.
Statistics show that:
• 80% to 90% of B2B transactions involve payment at a later date and credit terms are often extended;
• Accounts Receivables (A/R) or as it is commonly known ‘Debtors’ is one of the largest liquid asset representing on average 40% of the total assets of an organisation;
• More customers are demanding and expecting credit from their suppliers.
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