Is cashflow stopping your business growth?

Is your business set to take off? Or are you grounded by cash flow issues?

Is your business set to take off? Or are you grounded by cash flow issues?

Growing and innovating is what small business in Australia is all about. But if you don't have cash coming in, you can't fund the kind of research and improvement that would propel you to your next step. Similarly, attempting in-house debt recovery could be a burden on your resources and time, limiting what you can achieve on a day-to-day basis.

According to the NSW Business Chamber, lack of finance affects the goals and operations of around 200,000 SME's - and that's a conservative figure.

"Lack of finance not only constrains small business innovation, it can force smaller firms to shed staff or worse, lead to a bankruptcy," said CEO Stephen Cartwright in the Chamber's publication Small Business: Access to Finance.

A recent survey by The Invoice Market found that 5 per cent of SMEs could be forced to close their doors due to a lack of cash flow, while a further 32 per cent of small business owners would have to use personal savings or equity in their family home to keep their business afloat. Significantly, around a third of businesses surveyed said that a lack of available finance was hindering the growth of their venture.

While there are plenty of reactionary ways to deal with a poor accounts receivable and bank balance, debt recovery isn't the only resort. Often a more proactive way to ensure long-term, sustainable business growth is to establish effective terms of credit from the outset.

If you would like help determining whether you need to enhance your credit management strategies, or even if you need debt collection conducted - Commercial Credit Services is here to help.

Not only do we offer a full range of services, including use of our in-house solicitors, but we can get on board right at the very beginning of your entrepreneurial journey to make sure your business interests are protected.