Research by online small-business lender OnDeck Australia has revealed that only 49 per cent of Australia’s small businesses have the trading stock in place to make the most of the end of lockdowns. A third of the country’s small businesses, 33 per cent, plan to order additional stock following to make the most of the boost in trade brought about the listing of restrictions. The research also reveals that 44 per cent of small businesses say that their cashflow has suffered as a result of the lockdowns and hasn’t yet recovered.
“Cashflow plays a critical role for small businesses in the re-stocking process, and there can be opportunities to secure discounts with early payment,” Nick Reily, National Partnerships Manager at OnDeck Australia, said. “However, we know the pandemic has resulted in significant disruption to global supply chains. So, right now, it’s not always about having cashflow in place to save on costs.
“Businesses need to be able to act fast, and order stock well in advance given possible delays in procurement,” Reily added. “When businesses have appropriate cashflow funding in place, they are in a strong position to have conversations with alternative suppliers if their regular supplier cannot have stock to them on time.
“It is critical for small businesses to act early to have the necessary cashflow in place,” Reily continued. “This is a practice that likely needs to extend well beyond the end of lockdowns – and the festive season. The shock that COVID-19 has delivered to global supply chains will take time to resolve.”