Research by small-business lender OnDeck Australia reveals that many small businesses do not have adequate cashflow to make the most of lockdowns being lifted with only 40 per cent of those surveyed saying that they have sufficient cashflow to navigate the end of lockdowns. This figure falls to 21 per cent of small businesses employing 26-50 staff.
For 10 per cent of small businesses, the extended lockdowns have depleted their cash reserves. This rises to 14 per cent in Victoria, which have endured extensive lockdowns throughout the COVID-19 pandemic.
Heading towards the busy holiday season, the research noted that 51 per cent of NSW small businesses report having sufficient stock to make the most of the lifting of lockdowns. The figure is seen as less favourable for small businesses in Victoria, with just 41 per cent saying they have adequate supplies of trading inventory.
“Lockdowns have clearly taken a toll on the small business communities of NSW and Victoria,” Nick Reily, National Partnerships Manager at OnDeck Australia, said. “Cash reserves have been squeezed, yet maximising the opportunities offered by the end of lockdowns can involve spending money to make money. It’s a conundrum that could inhibit the ability of many small businesses to bounce back from lockdowns.
“A cashflow squeeze doesn’t just impact a business’s supply of trading stock,” Reily added. “Our research also revealed that one in four small businesses need to hire more staff post-lockdown, and less than half (44 per cent) have the necessary marketing in place to promote their business post-lockdowns.
“As we speed towards the festive season, small businesses need accelerated access to cashflow funding if they are to use the peak trading period to make up for lost revenue,” Reily concluded.