While the lead-up to Christmas can be a frantic period for many business owners, in the back of their minds they are probably giving a few anxious thoughts to the looming end-of-February BAS deadline and how they’ll meet their obligations and continue to fund growth.
Cashflow at this time of year is a real issue for SMEs. If a business is having a tough time with cashflow, it can be tempting to run up ATO debt, but there are smarter cashflow solutions available to them, that won’t negatively impact on their credit rating.
If a business owner has had a great year, they may have outgrown their traditional bank facilities and be facing cashflow problems that send them looking for new ways to fund growth.
Here are six tips to strengthen cashflow
The ability to access working capital and manage cashflow is crucial to SME success. Growing businesses often find their access to cash tightens, as they need to take on more staff and bring in more stock while still having to wait 30 to 60 days to get paid for goods or services already delivered.
There’s never been more options outside of the traditional bank loan for business owners to fund their enterprises – from invoice finance to online funding platforms and P2P lending, it’s just up to SMEs to find the solution that works best for them.
With invoice finance, SMEs are able to access the money they are owed much sooner than if they had to wait for customers to pay them. They are then able to use the cash injection to keep the business on track, and to keep growing.
Peter Langham, CEO, Scottish Pacific