At the start of this financial year, your business might well be taking stock and looking around at how other businesses are performing in the same landscape. This is a great way to see how improvements can be made to put you ahead of the competition - however, others will also be doing the same.
With that in mind, you'll have to find the edge on the others to put yourself in pole position and, unlike Daniel Ricciardo's team at the Monaco Grand Prix, use this strong footing to your advantage.
While the Australian driver was made to work hard for his second place, he started the most recent race first off the grid, and was let down by his team in the pit. With the right foresight and planning, as well as a prepared backroom staff, your business can use invoice finance to start, and finish, this financial year ahead of the crowd. It's time to start your engines and take control of those built-up unpaid invoices!
How is your business faring?
It's time to start your engines and take control of those built-up unpaid invoices!
According to the most recent Dun and Bradstreet Australia report on New and Failed Businesses, released on May 23, there were 13,023 failed or closed companies over the quarter just past - this figure is up from the same time last year when 12,383 businesses fell down and in the last quarter of 2015 at just 12,170.
If you've come through unscathed, while so many fell over at one of the many hurdles in the business world, then congratulations. However, there is a change in sentiment regarding the business landscape for SMEs in the country, and that's being shown by the record-low invoice payment time, reported in a separate release by Dun and Bradstreet Australia.
The Trade Payments Analysis from May 31 shows payment times have fallen to just 43.7 days, from 44.1 days at the end of last year. Businesses at the lower end of the scale, with between six and 19 employees, are the fastest at paying, achieving the impressive figure of just 40.2 days. On the other hand, businesses with more than 500 employees are taking the longest to pay, with an average of 52.4 days.
Whether you are a smaller or larger business, it's important that you don't trip over on your own confidence like the Red Bull Racing Team did with Daniel Ricciardo's golden opportunity to win at Monaco. All of the other businesses in the country are playing on the same field, so you will have to stand out.
Get in touch with Cashflow Finance today to talk about its invoice finance solutions, and help you take first place and control those unpaid invoices.