Are you prepared for the summer trade season in terms of cash flow?

Even in the best of circumstances, the summer trading season presents a slew of cash flow and inventory issues for retailers, let alone in the aftermath of a global pandemic slowdown. However, if done correctly, it may position your company for future success.

Summer, how we’ve yearned for you – especially this year when much of the country reopens its businesses and borders after yet another winter of closures.

However, many business owners will face one (additional) problem this year.

According to research by small business lender OnDeck Australia, fewer than half (49%) of Australia’s small enterprises have the trade stock in place to take advantage of the end of lockdowns.

To make matters even more complicated, 44 percent of small firms claim lockdowns have negatively impacted their cash flow.

The findings are similar to those of a previous Prospa poll, which indicated that 37 percent of SMEs needed funding to ride Australia’s reopening wave, with the average amount of credit being $46,000 per company.

This value rises to $58,000 for SMEs that are less than five years established.

During a worldwide epidemic, financial flow is critical.

Purchasing tools, equipment, or machinery, replenishing inventory, and investing in digital software were the top reasons given in the Prospa poll for wanting more finances.

According to the Prospa poll, 87 percent of respondents are concerned that chances would be missed if they do not have access to additional funding.

With the pandemic causing severe interruptions to global supply chains, Mr. Nick Reily, National Partnerships Manager at OnDeck Australia, noted that liquidity is important for small companies in the restocking process.

“Today’s enterprises must be ready to move quickly and order merchandise well ahead of time due to anticipated procurement delays,” he argues.

“When a firm has adequate cashflow finance in place, it is in a good position to talk to other suppliers if their normal supplier is unable to deliver stock on time.”

Please contact us to learn more about cash flow solutions for your company.

If you suspect you’ll have a cash flow gap in the coming months, you should start thinking about your funding possibilities now, before the summer trade season heats up.

The sooner we can go over your alternatives with you, the more prepared your stock levels will be for the Christmas and New Year seasons!

To learn more, contact Premium Finance Group Australia at (07) 4720 8888 or email us at finance@pfga.com.au

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