Welcome to 2016, a new year of business opportunities. The economic and business information provided by the media and experts, is conflicting. One group is saying economic and trade conditions are getting worse and turbulent times are ahead. The other group advise consumer confidence is up, unemployment numbers are down and the good news business stories are there if you look for them.

Under these conflicting circumstances, a business owner or professional, would be wise to take the time to investigate the "truth" of their business, marketplace and review how government legislation will affect their business. It is only by understanding the factors relevant to your business, can you move forward with some confidence.

The three main negative factors which are likely in 2016 will be: (i) a lack of lending by the banks, (ii) slowing payments from existing customers and (iii) a sudden upsurge in new account applications.

With the banks restricting their lending, and many business environments contracting, a business offering credit is a natural source of business finance. After all, security is rarely required and interest is seldom charged.

When payments start slowing down, you need to tackle the causes of these slow payments.  Not acting is not an option and only compounds the problem.

Thinking about and completing due diligence on new customer applications. The main question worth asking is: "Why are these applications suddenly starting to arrive?" I suggest if due diligence properly is completed properly, you will find many of the applicants will be struggling with cashflow and on "stop credit" with their existing suppliers.

As a business person, your business is to do business. Hiding away waiting for business is not the way forward, even if the business and economic conditions do not look the best. If you have a focus on due diligence, maintaining operating disciplines, employing and motivating the best employees and choosing the right time to act, you should be able to find positive opportunities.

Would you like to know more? You are welcome to contact Kim at kim@creditmatters.com.au  Let us work together to see if we cannot find a better way to get paid for your efforts in 2016.