Tell me Something I Don’t Know…

Most business owners did not need a report commissioned to tell us about business sentiment and pressures on SMEs this year.

Things we already knew:

1. It has been increasingly harder than previous years to fill jobs with suitable, quality staff

2. Nearly half of all businesses have experienced increases in operating expenses

3. Many have faced supply chain disruptions

4. Cash flow has been affected by inflation and interest rate rises

5. It has been harder to collect customer payments

6. Sales have declined

The hardest roles to recruit have been in education and training, retail trade, administrative and support services. The most common factors were lack of job applicants and applicants not having the relevant experience and qualifications. This has made it extremely hard for businesses to maintain and grow.

Businesses in WA and NSW are reportedly feeling the pinch more than our other states.

Over half of businesses have revealed they are delaying planned business investments, however most are confident they will revisit when the economic climate improves. We are also observing some businesses investing in new technologies and hiring more staff. Some are self funding from retained earnings or previous years’ profits, while others are seeking funding to get them through the next few months.

With the festive season on our doorstep, there will be many businesses that need a cashflow injection to keep their doors open while they wait for their incoming cash.

So if you need quick access to cash, there are a few options that may suit your needs:

1. cashflow funding, or

2. a business line of credit.

Cashflow funding provides you with the ability to use your future cashflows as security to unlock additional funds to grow your business.

Often used by companies with longer payment terms on invoices, there are numerous cashflow funding options you can unlock today available through our lending network.

How does cashflow funding work?

Cashflow funding provides you with a shorter term funding facility by reducing the pressures on day to day operating funds. Think of cashflow funding as a business line of credit. Using your outstanding invoices as security, financiers can provide you with a facility to draw down against these future cashflows to help maintain or grow your business today.

Features:

• Flexible facility terms

• Typically based on a percentage of your future receivable/s

• Can be drawn down as required

• Fast turnaround on approvals and provisioning.

A business line of credit is also a popular and flexible loan option if you:

• need fast access to cash

• want to choose short term debt

• only want to pay interest on funds being used

How does a business line of credit (LOC) work?

A business line of credit works much like a credit card. It gives you access to a sum of money up to an approved limit. Funds are available to withdraw when needed and you only pay interest on the amount you use. With a revolving line of credit, once you repay the amount you can draw down again, but it is reviewed over time.

A business LOC can be secured or unsecured, but some lenders may only offer a secured LOC. This means you may be required to put up assets or equity as collateral for the loan and you will not be able to sell these assets until after the LOC is closed.

Lending criteria has changed in the last 7 months.

It is important to work with us to compare lenders, features and fees to find an appropriate finance solution for your business.

Time is of the essence, so reach out NOW before our lenders head off for their Christmas break.

A quick chat will allow us to identify if we can help, so don’t be shy. We are here to help.