MYOB & D&B PARTNERSHIP TACKLES SME CASH FLOW ISSUES

17 November 2003

Business management software company, MYOB, has joined forces with D&B to help small-medium business owners limit their exposure to bad debt and maximise available cash flow.

Over the course of the next six months, MYOB will roll out a range of D&B account management tools on its website, specifically tailored to meet the needs of the SME market.

The first of these tools, the D&B Accounts Recovery Service, is already live and allows MYOB support plan customers to list outstanding debts for recovery with D&B. Customers can list as many debts as they wish ($400 minimum value) for a small annual administration fee, plus a commission payable only on monies recovered.

Craig Winkler, MYOB Chief Executive Officer, said the partnership with D&B was about providing the SME market with the same tools to maximise business opportunities that the big end of town currently enjoys.

“Since the introduction of the GST, corporate Australia has renewed its focus on the importance of good debt management in order to maximise available cash flow. We have seen credit terms tighten considerably,” Mr Winkler said.

“However, while SMEs have come to the party and are now paying their invoices faster than at any time in the past four years, it would seem that many larger companies are still dragging their feet.

“As a result, SMEs are bearing the brunt of the cash flow squeeze, as they struggle to meet quarterly tax deadlines and pay their creditors on time.

“MYOB has recognised this inequity and is working with D&B to help level the playing field. We aim to do this by providing small business with the same knowledge and tools that big business is already using very effectively to avoid the cash flow squeeze and significantly reduce overdue accounts,” he said.

Where invoices become overdue, Mr Winkler said the D&B Accounts Recovery Service allows customers to place and track outstanding accounts online in real time and manage how they are collected.

“MYOB chose to partner with D&B because of its commitment to protecting its clients' reputation and professional image.

“As a small business operator, the strength of the relationship you have with each individual customer should determine what level of action is required to recover an overdue account.

“Always remember though, that a late paying debtor one day could well turn out to be a key customer the next.

“By taking a tailored approach to each individual account, D&B can assess when to take the soft approach and when to apply more persuasion,” he said.

Ms Christine Christian, Chief Executive Officer D&B Australia & New Zealand, said: “Traditionally, we have found that SMEs don't use debt collection, firstly because of a fear of losing customers and secondly, a lack of resources.

“What they need to understand though is that these are the rules that big business plays by and it's part of their everyday operations.

“Debt collection isn't a dirty word, it just needs to be handled in a sensitive and effective manner in partnership with the client.

“Good debt management gives SMEs the confidence to say ‘Yes, I do have defined terms of payment and yes, I will take appropriate action if these terms aren't met'.

“At the moment, SMEs are mainly using the service to follow-up long-term, bad debt which is the most difficult to recover. But the real value lies in catching debt early, before it falls into the too hard basket.

“By taking this early intervention approach, your invoices are more likely to rise to the top of the ‘must pay' pile, ahead of other outstanding accounts.

“Cash flow is the lifeblood of all businesses both big and small and poor debtors can cut off this supply very quickly. What's more, it's a fact that the longer an account remains outstanding, the less likely it is that it will be recovered.

“Our data has shown time and time again that businesses that consistently apply good receivables management practices in their infancy are far more likely to survive and prosper in the long-term.

“And at the end of the day, our partnership with MYOB provides an opportunity for the SME market to follow this lead and do likewise,” she said.

Further management tools to be made available to MYOB customers online over the next six months will include credit checking, business verification and ‘behavioural monitoring' services. This will enable SMEs to find more profitable customers, reduce credit risk, optimise their receivables and recover debts more quickly.

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For further information or to arrange an interview please contact:

John Cooke, King Public Relations

Tel: (03) 9696 5909 (work) (03) 9687 2337 (home)

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Sarah Douglas, PR Specialist, MYOB Australia

Tel: (02) 9770 9065 or 0402 208 172

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Christine Christian, D&B Australia

Tel: (03) 9828 3540 (work); (03) 9380 6397 (home); 0419 367 403 (mobile)

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About D&B Australia & New Zealand

D&B is the world's leading provider of business-to-business credit, marketing and purchasing information and receivables management services. D&B manages the world's most valuable commercial database with information on more than 80 million companies. Information is gathered in 209 countries, in 95 languages or dialects, covering 186 monetary currencies. The database is refreshed more than one million times daily as part of D&B's commitment to provide accurate, comprehensive information for its more than 150,000 customers.

The Australasian operations were bought out by the senior management group in August 2001. It was the first MBO of a wholly owned subsidiary in D&B's history worldwide.

Today, AMP Henderson owns a 77.5 per cent stake in D&B, the local management team a 20 per cent stake and the D&B Corporation 2.5 per cent.

Future plans for D&B include an IPO of the business in 2005. Strategies for future growth include developing D&B's commercial and consumer credit referencing business; expanding its receivables management outsourcing business; maintaining its lead in the development of unique credit and risk scoring products; and developing new products specifically tailored to the Australasian market. D&B currently employs over 500 people in Australia and New Zealand .

About the MYOB Group

Founded in 1991, the MYOB Group is a leading provider of business management software for small and medium sized enterprises and accounting practices around the world.

MYOB has operations in Australia, New Zealand, USA, UK, Hong Kong, Singapore and Malaysia.

MYOB develops and publishes award winning software solutions that have revolutionised the way growing businesses view accounting and business management software. MYOB also provides systems and services targeted to the needs of public accountants.

The MYOB Group is owned by MYOB Limited, a public company listed on the Australian Stock Exchange (ASX symbol 'MYO').

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