Brokers are being urged to discuss with their SME clients, the potential cash flow concerns that can arise for non-retail business over the holiday season. SME lender Prospa has found that two-thirds of small businesses succumb to some amount of financial stress over this period, which is largely attributed to the lack of funds flowing into the business.
Propsa’s recent broker poll highlighted one of the major reasons that small business owners seek financial advice is due to managing cash flow, with more than half of the brokers saying so. Other reasons noted were financing for new or upgraded equipment (20%), expanding the current business (12%) and covering BAS and ATO debts (10%).