Cashflow can be one of the biggest problems for SMEs and juggling competing interests to stay cash positive is a constant struggle. A recent study revealed that for Australian SME owners, cashflow is a major stress issue, with 32% of SMEs dipping into their own accounts and 44% using credit cards as the primary tool to manage cashflow, working capital and business investment.
With recent cash rate reductions and a persistently strong Aussie dollar, the RBA still has room to impact exchange rates. The big four banks in Australia are in a tough spot (as demonstrated by their recent failure to pass on the full cash rate reductions). As they rely on strong dividend payouts, and international funding markets to fund lending, banks are increasingly unlikely to kick-start the economy through lending growth to SMEs. As a consequence of the sluggish economy, SMEs are left to their own devices to manage cashflow problems, which are simply out of their control.
To be prepared, SMEs need to ensure that cash reserves, cashflows and credit limits are sufficient to meet day-to-day and growth needs. There can be high financial demands associated to running a business in a difficult economic environment, which are made even harder as banks limit lending to SMEs.
Business owners need to start thinking about using specialist lenders to allow them to continue to access funds to grow and maintain their business. For time poor and stressed small-business owners, it’s not that surprising that they are failing to capitalise on these emerging finance solutions – who has the time to research new solutions when they’re focused on cashflow problems?
This is where companies like Loanfinder are matching business cashflow needs with quick and easy funding solutions to enable business to access the cash they need. It is a near instant solution for a problem that the big banks do not seem interested in assisting.
Even when they are interested, the conditions or document requirements they require are another hurdle for a business owner to have to overcome. For those that choose to attempt to overcome and supply the documents required, the wait for an approval can be very long and take months.
If you require less than $50,000 for your business. Loanfinder will require your last 3 months bank statements, an application form and a copy of your drivers licence. Alternatively, you can complete an enquiry form and a consultant will contact you to discuss your lending needs and how we can help.