Funding & Finance

In this interview, Assistant Treasurer Bill Shorten reaffirms the Government’s vision for encouraging greater banking competition. He explains the plan for supporting a so-called ‘fifth pillar’ of non-bank lenders and addresses the role of superannuation funds in achieving a budget surplus.

A 'who's who' of leading Australian entrepreneurs and business builders gathered last night at Melbourne's 24 Moons Bar in AC/DC Lane to celebrate Anthill Magazine's 2010 Cool Company Awards. Winners were presented with as Australia's biggest award in business -- a 1.2 metre personally branded trophy bean-bag. In addition to the formal accolades, attendees were treated to party games for entrepreneurs, such as 'Pin the Idea on the Venture Capitalist'.

A website that compares financial services doesn't need to be fusty by nature. That's the directive for the people at Mozo, which is trying, in its own little way, to shake up the banking sector. Mozo lets people compare offers on home and personal loans, savings accounts and credit cards, offering a "top 5" list in each category and then allowing the user to find options that best match his or her requirements.

Gretha Oost is an innovator with a passion for environmental protection and a knack for marketing her own ideas. Her latest creation is 321 Water, a portable, on-the-go water filter. The name refers to the three litres of water required to normally make one litre of bottled water.

In this news podcast, Leon and Garry talk about interest rates being put on hold – for now. But evidence suggests that latest interest rate rise has put pressure on the construction industry and BIS Shrapnel says it was premature. Also, could a Wikileaks cyber war be hitting Australia? Press play and have a listen.

Founded by web-developers Scott Handsaker and Andrew Edwards in November 2009, Eventarc has turned over AUS$4million in transactions in the past 13 months. That's approximately $300,000 per month. Becoming quickly revenue positive has proven to be an important factor when picking investments for the Future Capital Development Fund (FCDF), according to Domenic Carosa.

Australian online retailer eStore.com.au is in acquisition mode for 2011 with plans to grow its already significant business through the acquisition of local online companies. In a statement to Anthill, eStore founder Lorenzo Coppa says he is keen to speak with owners of online businesses selling technology products looking to exit the market or explore opportunities to leverage their products with eStore.com.au.

This is the third and concluding article in a series on the most effective strategies for undertaking a business valuation. Having now analysed the best valuation methods for the present day, Kevin Lovewell turns to the final pieces in the financial puzzle: How to find a financial ratio that measures profits.

Leon and Garry talk about Telstra’s shares soaring with the Government getting the NBN legislation through parliament. What’s next, and how is the business model shaping up? Plus, a look at the new anti-siphoning laws and why they provide wins for both free-to-air TV and pay TV.

Frustration with tardy debtors was the obvious impetus behind this nifty invention from Belgium outfit ikki; an invoice with a voice-chip that begins to make weeping noises 20 seconds after the envelope is opened. But what's truly inventive about the 'crying invoice' is its other purpose.

How easy is it to do business in Australia? Apparently, it's easier than doing it in Germany, Japan and Portugal. And it's a damn sight easier than in Argentina or the Solomon Islands. That's the assessment by The World Bank and the International Finance Corporation in their latest rankings of the world's economies. On the other hand, Australia crawled in at 63rd for "dealing with construction permits" and 59th for "protecting investors". Ouch!

The recent problems experienced by one of Australia's top four banks shows just how much people rely on their money 'being there' when they want it. This problem could have occurred at any of the financial institutions (and will surely happen again). So, how do you protect yourself from banking blunders like this?

In this week’s Talking Business Analysis, RMIT economist Alberto Posso talks about wages growth and the differential between male and female wages. He observes a sizable gender gap still exists in Australia and looks at some reasons that explain this disparity.

Everywhere this week, companies have been taking advantage of a red-hot Australian dollar to engage in mergers and acquisitions. Leon and Garry talk about AMP and France's AXA SA bidding on AXA Asia Pacific, Brambles buying the Dutch IFCO Systems, OneSteel buying business from AngloAmerican, and more, plus all the latest news in this Talking Business podcast.

Commonwealth Bank raises its mortgage rate on top of the RBA’s interest rate hike. Meanwhile the inflation index for Australia is picking up. And Joe Hockey appears to be on a winner with his plans to control the banks: he and the Government are now in a game of one upmanship to bring the banks into line. Leon and Garry discuss all these headlines and more in this news podcast.

Last week, Kevin Lovewell emphasised the importance of undergoing a business valuation, noting how the large share of business value today is based on intangibles off the balance sheet. Here in Part Two, he reviews the specific methods for performing a valuation based on one of two measurements: the physical assets of the company and the cash flows the company provides to the owners.

The top business story of late has been the Singapore Exchange’s bid to take over the Australian Securities Exchange. Leon and Garry examine the growing political opposition to the bid and the conditions under which the Government might approve the merger.

How much is your business worth? There are some fundamental truths about undertaking a business valuation. In this first of a three-part series, Kevin Lovewell provides a simple explanation of business valuation methodologies and debunks some of the myths surrounding valuation techniques.

Not even a sore throat can keep Garry away from the news desk this week. He and Leon discuss the near-certain likelihood of an interest rate rise before the Melbourne Cup, as well as James Packer's surprise sharemarket raid on the Ten Network and its consequences, plus all the latest business news in this episode of Talking Business.

Talking Business is a podcast review of the Australian economy, presented by seasoned business journalists Leon Gettler and Garry Barker, produced in association with the RMIT College of Business. In this podcast, RMIT economist Jonathan Boymal talks about flat to declining housing and lending finance, indicating that housing will not be driving the Australian economy for some time.