With Christmas just around the corner, retailers are bracing for their busiest time of year. But for many of our small business clients outside of retail, the holiday break promises a slowdown.
Managing the peaks and troughs in your business cash flow around the summer months can be challenging for many business owners.
Typically around December to February, your staff go on annual leave and receivables become even more difficult to collect as everyone is feeling the squeeze, so demand for cash is high. Then after the festivities, you are faced with a gradual trading increase until the new calendar year gets traction.
This is a delicate period that sometimes requires anticipation and planning. Something to consider here is if you need working capital finance which provides additional cash flow support.
Boosting your cash flow during this time, can effectively alleviate the pressure and provide a sense of control. Funds can be used for any business purpose including paying suppliers, inventory purchases, advertising, wages and superannuation, or buying new equipment. Here are some tips on how you can manage cash flow, staffing and payments during this critical period.
Get paid faster
If you want to get paid before Christmas, be sure to invoice by the 10th December.
Settle invoices quicker
Switch to online invoices and get invoices settled 33% faster using a cloud software system such as Xero.
Consider the cost of hiring staff over the quiet period so it doesn’t impact negatively on your business.
Bounce back after summer
Your Wilson Pateras advisor can help you start a financial plan for the next 12 months so you can bounce back quicker the busy period.
Take advantage of instant cash loans
If you have followed our tips above and you recognise there will be a cash flow issue, Wilson Pateras can provide cash flow finance to small businesses (Less than $10m turnover) as a genuine alternative to traditional debtor finance and bank funding. We offer:
- Fast Online applications
- Competitive rates
- Unsecured Finance
Cash Flow Loan Case Study
Justin is in his late 30’s and is a plumber. He approached his bank for assistance to refinance his investment property. However, the bank would not refinance his loan as Justin owed the ATO $70K in outstanding BAS payments.
Justin then approached Wilson Pateras Lending & Finance for assistance and we helped him secure an $70K short-term cash flow loan within 24 hours. He was then able to pay his Tax Debt and then re-approach the bank who refinanced his investment property loan.