Each year around this time we brace ourselves for a rapid upswing in the demand for small business funding.
This traditionally happens due to the seasonal drivers and additional expenses that will hit the bottom line for small business over the next 60 to 90 days.
Most small businesses face cash flow peaks and troughs at the end of year period, so if you are a small business owner, it’s important to think ahead and set up your business in advance to handle these challenges for a couple of reasons. Most importantly, so you can continue to operate your business at its current level as a minimum, but outside of this is so you can take advantage of the opportunities that present a lot of businesses over the festive season, like increase in volumes of sales. Keep in mind that when you are managing a tight business budget and you’re good at managing your cashflow resources, the right small business loan could be the answer to having a profitable season.
A recent poll revealed that managing business cash flow is the main driving reason small business owners seek funding (53%), followed by buying or upgrading equipment (20%), business expansion (17%) and meeting BAS or ATO debt (10%). Research also suggests that 79% of businesses don’t have the required cashflow on hand to do what’s required in the business right now.
“Staying on top of cash flow is tough, as a small business owner myself, I experience this just like everyone else, but having an understanding of your cash flow position is an essential ingredient to running a successful business, especially in the lead up to peak seasons like the upcoming festive season,” said Fox Finance Group’s Founding Director, Dan Fox.
This time of year can be either a business boom or tumbleweeds for some of our SME clients and when you think about it, both of these scenarios come with cash flow pressures.
Putting a well thought out cash flow plan in place right now is integral to getting out the other side and being able to position your business well into 2020. This is what we can help our small business clients with as part of our service, and we don’t charge our clients a fee for doing this.
The summer holiday season has many businesses looking to fund the costs of extra wages for additional staff and supplies or looking to replenish their cash flow after having to already to pay out for these additional expenses over this time. Further, retailers need extra stock to capitalise on big sales events, such as Black Friday, Click Frenzy and Cyber Monday. But if you have any legitimate business expense that you require funding for, our team are here to talk you through your options.
On the flip side, some small businesses will be preparing for a cash flow squeeze after closing their offices in late December and in some cases not reopening the doors until mid-January or later. Unfortunately, the bills don’t stop coming and wages still need to be covered for PAYG team members. This is where a sound plan with an unsecured business loan with low fees can help you make this work.
If you and your business feel these cashflow pressures this time of year and you are wanting to plan for this, speak with one of our Business Lending Specialists, obligation free about what your business loan options may be. We can work out with you to the cent what the total opportunity cost would be for your business to really take advantage of the small business loans available right now.
Nathan joined Fox Finance Group in 2018 to help drive the strategic growth of the business and also help build on the solid foundations that have held strong in the business since 2006.