Cash flow the biggest issue for the next quarter

October 9th, 2014

Cash flow is becoming a big concern for small businesses.

Companies are concerned about their cash flow heading into the next three months, at least according to the most recent figures from Dun and Bradstreet (D&B).

The company has surveyed the attitudes of Australian companies towards their financial positions, with 26 per cent suggesting that cash flow would have an impact on their operations through the rest of the year.

This beat other important issues for businesses, with insurance rates (12 per cent) and the exchange rate (11 per cent) also featuring among the biggest concerns for Australian firms.

For suppliers, the study also contained some worrying news. Roughly 40 per cent of firms indicated that they would miss payments to trade suppliers if they were unable to meet these costs. This was double the number who were prepared to miss payments on a business credit card (20 per cent).

While this might pose a challenge for businesses, there are still tools that companies can use when struggling to make ends meet. Debtor finance is one option- with this making it easy for companies to make the most of their unsettled invoices and in turn help to finance future growth.

With 20 per cent of companies in the D&B survey already looking for new financial products to unlock future growth, it is clear that many companies are already looking for alternative financing methods.

Although this study suggested that many companies are concerned about their financial future, there was also some good news to come out of the survey.

In particular, there was a significant growth in the number of firms that are positive about the next few months, with 68 per cent indicating they are high hopes for greater expansion this year. D&B's employment expectations index also rose sharply, suggesting many companies are prepared to take on more staff in coming months.

Earlypay has supported Australian SMEs with fast and flexible alternative funding solutions for more than 20 years. Our business line of credit, debtor finance and equipment finance products allow business owners to proactively manage their cash flow, freeing up your working capital for investing in growth. To chat about whether our solutions could be right for your business, call us on 1300 760 205.

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].