BUSINESS FINANCE NEWS – NOV 26, 2020
A brief summary of news you probably missed!
Myth Busting ~ Shonky Advisers ~ CBA Enters The 21st Century
The accepted wisdom is that an economic downturn – in particular that caused by the Covid lockdown – will cost lives by pushing up unemployment and misery.
Not so, says a group of economic heavyweights at the University of Sydney. In fact, it’s the opposite.
Writing in The Conversation, the researchers said, “on average we find no relationship between unemployment and mortality. In particular, we find no significant increase in suicide rates”.
They did find that economic downturns had a significant effect on road deaths. They save them!
With research suggesting that up to one-third of SME owners may sell or wind up their businesses in the wake of the most disruptive year in memory, the Tax Office is warning; beware of shonks!
In particular, it is referring to the growing number of so-called pre-insolvency “experts” lying in wait to prey on vulnerable companies and their wounded owners.
In an article published in Smart Company, The ATO says it’s prime time for businesses to be targeted by advisors offering inappropriate and unqualified advice, including illegal phoenixing.
The ATO urges tax advisers to warn clients about the risks involved in taking advice from unethical advisers.
The ATO offers some common red flags that suggest your adviser may not be trustworthy.
Special K Recovery
The brains trust at Get Capital reckon we are embarking on a K-shaped recovery.
CEO, Jamie Osborn, told an SME Insights Webinar, that there is an upper arm to the K representing businesses doing incredibly well and a lower arm representing businesses which have been decimated.
He says managing the pullback of the government’s Covid inspired stimulus will be critical to the survival of many companies.
Get Capital’s boss says consumer demand will be the key to the success of the transition from government support to self-sustenance
CBA Enters the 20th Century
The Commonwealth Bank wants to enable e-signatures for commercial lending and home loan paperwork nationally.
The process of making it happen is proving slow, but the onslaught of the pandemic has pushed it along especially after the government of NSW and Victoria passed emergency laws which enabled more types of documents to be signed or witnessed electronically.
CBA is partnering with DocuSign to deliver documents to clients.
What’s A Name Worth?
Shortly after changing its name to EarlyPay at its AGM, non-bank lender CML Pty Ltd, witnessed a 7.5% rise in its share price.
The No 2 ranked debtor finance company operates a number of brands including Cashflow Finance and Classic Funding but they will all be brought together under the one banner.
The Motley Fool suggests the name change might not have been the only reason for the price hike reporting that the company is also restructuring its debt financing portfolio, entering into a distribution agreement with a large scale brokerage network, and launching a new SaaS platform.