On average 50% of new businesses fail within the first five years. In their time of need, many small businesses will turn to brokers like you for guidance – and your help could get them out of a tight spot. In fact super fast, short-term business finance did just that for one of our clients.
Plugging the cash flow hole
Recently a shopfitting business contacted one of our brokers looking for help. You see his biggest customer, one of Australia’s largest shopping centre corporations extended their payment terms to 90 days – when they were due to pay the next day.
As you can imagine this put our client in a difficult situation and created a massive hole in their cash flow. The shopfitters subcontractors were due $100,00 within the week and our client found himself in a dire position.
What would you do?
As a Broker, you might be presented with these situations only once or twice a year. Typically you might shrug your shoulders, turn the client away and put it in the too-hard basket. Or this could be your chance, take the surprisingly simple solution of recommending bridging finance to keep their business afloat and keep their subcontractors on the job.
In this instance, for our shopfitter, all it took was a phone call from the broker, a single page form and they had not only saved the day but potentially built a strong client relationship for life.
The strongest relationships are often forged in difficult circumstances so choose to be there for your clients in their darkest hours and you can truly stand out from the pack. At Strive Financial we believe that there is a solution available for your individual financial situation. Contact us to see how we can help you.
Cash is king. Nowhere more so than in small business – it enables the purchasing of stock, paying of staff and contractors or even paying debts. It also enables small businesses to invest in new opportunities or innovate – but cash for these businesses can be a little bit chicken and egg. Which comes first?
There is a lot of stigma attached to short term lending. And with good reason in some cases. But, the reality is that almost every business at some stage will need access to finance – and that’s not something to be ashamed of. Short term finance can help businesses react to changing situations or take advantage of new opportunities.