Hermes Ledger with Nick Samios

In this episode we dive into the collapse of Greensill Capital with Duncan Mavin - Author of The Pyramid of Lies.

In the world of finance, many people invest without thoroughly reading complex documents. They trust established players, assuming due diligence has been done. This trust can lead to issues when promises don't align with reality.

Greensill Capital's rise and fall is a story of complex finance, layered with personalities. Lex Greensill's journey from a farming background to financial prominence is fascinating. His charisma and visionary image drew people in, blinding them to potential red flags.

Lex's actions and the recurring financial scams in the industry raise questions about the underlying motivations and mindset of individuals like him.

The pursuit of high society and credibility in the financial world drove Lex to build an image of success, utilising relationships with prominent figures like David Cameron. He played a pivotal role in opening doors for Lex and Greensill, leveraging his political connections to secure funding and access to influential leaders, such as Muhammad bin Salman.

The problem with supply chain finance, as exemplified by Greensill, is that it has been applied in ways that harm small businesses. Big buyers can coerce small suppliers into unfavourable deals, essentially holding their finances hostage. Although there's a move to make accounting more transparent, predatory practices still persist.

The story of Greensill is part of a larger pattern where financial schemes are portrayed as benevolent efforts to democratise finance. However, in reality, they often serve personal interests or attract investments based on inflated promises.

Lex Greensill's focus on branding and credibility-building using other people's money underscores the disconnection between the public image and the actual economic impact of such ventures.

Don't miss this episode of Lunch Money with Australia’s leading economist Warren Hogan. 

In this discussion, we’ll delve into the challenge of deciphering conflicting economic data. Warren is the Managing Director and Founder of EQ Economics, a consultancy specialising in economic, market, and industry analysis. He is also an economic advisor to Judo Bank, a specialist SME-focused lender. His insights into the Australian economy and its impact on small businesses are not to be missed. Tune in for a deep dive into the complexities of navigating through contradictory economic data and gaining valuable insights in the process. 

Lunch Money is produced by Hermes Capital Partners

https://hermescapital.com.au/

What does it take to be on an advisory board? It takes more than just experience to be on a board these days. Louise Broekman from The Advisory Board Centre joins us in the next episode of Lunch Money. We explore best practice for board selection, such as what skills and knowledge is needed to become an advisory member. Plus the support available to both businesses and individuals to develop successful advisory boards. If you are looking to join a board, establish a board or improve your existing board, you don't want to miss this one.

 

Lunch Money is produced by Hermes Capital Partners

https://hermescapital.com.au/

In this edition of Lunch Money, we are joined by our expert small business guests. David Gandolfo OAM (Board Member of COSBOA, Chair of Advocacy at CAFBA, and Partner at Quantum Business Finance) who will take us through the highlights of COSBOA's recently published report, "Small Business Perspectives 2023."

We explore the emerging vulnerabilities and opportunities that are facing small businesses today. Throughout the episode, we'll explore the latest developments in their professional fields - commercial finance and corporate restructuring. Don't miss out on this opportunity to expand your knowledge and gain valuable insights from these industry experts.

Tune in to Lunch Money and get ready to level up your understanding of the business world!

Lunch Money is produced by Hermes Capital Partners

 

RESOURCES

COSBOA Small Business Perspective 2023

https://www.cosboa.org.au/post/the-small-business-perspective-report-2023

In this episode of Lunch Money, we were joined by special guests Daniella Mancuso from Nationwise Financial Solutions and Ian Hyman from Hymans Valuers & Auctioneers. We discussed the challenges of diversifying and growing professional services firms, with our commercial finance broker audience in mind.

 

In this interview, we were joined by special guest Nicolas Pilavidis from the Australian Institute of Credit Management.

We discussed the critical role that credit professionals play in managing risk and ensuring their businesses receive payment for the sales and services delivered. Plus their unique information sources, that enables them to track how economic conditions impact their customers and provide insights into future developments by analysing these trends.

So what do the risks look like for 2023?

We dived into some insights from the recently published AICM Risk Report for 2023 including:

• The 'big squeeze' of rising costs and falling demand,
• Managing trade credit in an increasing interest rate environment,
• How credit managers are identifying and managing emerging industry, technological and legal or regulatory risks, and much more...

Episode Resources

AICM Risk Report for 2023

Checking out the business advisor you choose in a crisis is like checking out the parachute you choose before jumping from a plane. You need one that is going to get you to the ground safely – and that won’t always be the first one that comes to hand.

 

In this episode we are joined by guest Neil Cussen from Cor Cordis, to discuss how we choose the right advisor.

 

A great advisor can provide valuable guidance, experience, and the right connections that can help you navigate the tricky terrain of fundraising and business strategy in special situations. However, with so many advisors to choose from, it can be challenging to know how to pick the right one.

In this episode, were are joined by guest Mark Robinson, Senior Advisor at dVT Group. We discussed the challenges of rising interest rates, inflation, labour market constraints, supply chain issues and how they influence the approach the experts are taking to making sure businesses stay in the game.

Host, Nicholas Samios and guest, Andy Way (executive director and founder at Semper Securities) rummage through the latest RBA charts - interest rates, inflations, asset prices, business lending growth and more. Semper Securities is an asset back mortgage fund which gives Andy valuable insights you won't get in the financial press.

What are the fundamental survival instincts hard wired into humans and how can they contribute to success in business?

This week’s Lunch Money special guests are Mike House and Michael Ford to talk about how small and medium businesses can go beyond surviving to instead thrive in these times of economic turbulence and upheaval.

Mike House is the author of “(Un)shakeable: more than resilience” a business mentor and a survival expert having survived several life-threatening survival situations. These days he assists leaders to raise their capacity to deal with uncertainty.

Michael Ford is founder and CEO of Castaway Forecasting and Chief Growth Architect of entrepreneur advisory firm Growth by Design. Michael's experience spans from mining through to manufacturing and professional services and he is the champion of the “Value Driver Tree”.