If cash flow troubles are keeping you awake at night, we might have the solution. A year after The Reserve Bank of Australia (RBA) started raising interest rates, people are starting to feel the pinch, making cash flow a real struggle for many business owners.
While it’s true, Strive Financial lends to small business owners facing temporary cash flow issues all the time, we’re seeing people who’ve never had to deal with this problem before. That’s why we wanted to share some insight into why cash flow is so important for your business – and how we can help if you’ve hit a cash flow snag.
Cash flow is the volume of money flowing in and out of your business at any particular moment, offering a glimpse into how your business is doing at any given time. Your cash flow is more precise when calculated at recurring intervals, which is why most businesses will track their cash flow monthly. Did you know you can be turning a profit while being cash flow negative? And in case you’re wondering, cash flow negative is when there’s more money going out than in, and cash flow positive is the opposite. Understandably, the preference is to be cash flow positive.
On the surface, cash flow becomes a problem when people don’t pay on time. But it goes deeper than that. Let’s say you’re a builder and, as you’re almost finished with a current project, you bid for a new contract. You’re successful and win the new job. Congrats! However, just as you’re popping the champagne corks, your current project stalls. Now this does happen and you have contingencies in place. Nevertheless, this stall is likely to be just long enough to ruin all your plans as you were counting on the money from this project to set up for the new contract. Almost instantly, your cash flow dries up. Not only are you dealing with a stalled project, but you’re also staring down the barrel of having to withdraw from the new project. That means there’s no money coming in now and there won’t be any coming in down the track either.You have to find money somewhere but the only thing you have is equity in is your home. And you’re not selling your family home.
Strive Financial has entered the chat. And tucked away in our trouble-shooting toolbox is a bridging loan which means you don’t have to sell your family home, you just have to use it as security. How does it work?
How does within 24 hours sound? Yep, that’s just one more sleep – except you’ll be sleeping soundly because your cash flow problem has just been solved. Don’t just dream about no cash flows issues. Make that dream a reality and contact us today!
A symbiotic evolving network of relationships in the finance sector binds brokers, clients, and lending institutions like us at Strive Financial, creating a connected industry ecosystem. We work with brokers closely and often get asked why they should partner with us.
UPDATED 7 JUNE 2021: with the EOFY fast approaching, now is the time for small businesses to make the most of the Instant Asset Write Off. Small businesses could realise immediate benefits in acting before June 30, but as always there’s plenty to consider so read on for more information.
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.