A recent report on the performance of small businesses in the December quarter revealed that trading conditions were tough, with financial restrictions holding back many companies across the country.
According to the December 2013 edition of the Australian Chamber of Commerce and Industry's (ACCI) Small Business Survey, small businesses in the country found it "very difficult" to trade toward the end of last year. This was largely down to their struggles in key areas including sales, profits, employment and investment.
External factors were certainly taking their toll on small businesses, as many companies reported that business taxes and government charges remain some of the biggest constraints to investment. Low levels of demand and strengthening local competition also proved to be barriers to investment and growth.
Small businesses will have to keep an eye on their wages too, as wage costs were revealed to be the fifth most binding constraint on investment.
Burchell Wilson, acting chief economist at the ACCI, said that the struggles of small businesses were out of line with improvements in the overall business scene in the quarter.
"Sales revenue, profits, employment and investment indicators for small business all fell in December, defying the broader national trend improvement," he said in a February 17 statement.
"Small business remain under pressure and are clearly focused on consolidation rather than expanding their operations."
With financial difficulties being the main hindrance to small business growth in Australia, it is important that companies ensure they make the most of the tools available to them. Debtor finance, for example, can help all kinds of small businesses improve their cash flow finance and keep growing.
If your business is struggling to fund its critical investments but has assets locked up in the form of unsettled invoices, you can put these to good use and quickly turn them into usable cash. Assigning these invoices to a debtor finance company means you'll soon have the cash in hand to take care of wages, pay suppliers and invest for future growth.
If you'd like to learn how Earlypay's Invoice Finance & Equipment Finance can help you boost your working capital to fund growth or keep on top of day-to-day operations of your business, contact Earlypay's helpful team today on 1300 760 205, visit our sign-up form or contact [email protected].