Many small businesses are in the dark when it comes to non-traditional financing options

A new survey from business management platform MYOB reveals that the majority of Australian SMEs are unaware of short-term alternative financing methods that can help them address the cash flow challenges they face became.

Specifically, 68% of the companies surveyed had never heard of one such non-traditional financing option: invoice financing. Additionally, 71% of respondents confused it with another form of financial assistance, and only 15% had used it before.

“At a time when small businesses are feeling the pinch, many businesses miss out on quick and effective ways to alleviate cash flow shortfalls,” said Steve Price, MYOB’s head of market development for financial services. It shows that you are not aware that you may be “It is very important for small businesses to understand which cash flow management tool is right for them.”

The survey also found that 39% of SMBs had faced cash flow problems since March, and a further 48% had experienced financial pressure in the preceding six months. rice field. As a result, 28% have sought financial assistance within the past year, and a further 28% plan to do so within the next 12 months to cover significant costs such as wages and supplies (small businesses 26% revealed). or upgrade equipment (34%), improve cash flow (30%), or pay operating expenses (27%).

“Businesses are now facing very tough financial pressures due to rising wages, energy and fuel costs and record purchasing costs,” Price said. More have raised salaries in the past year, indicating that raising employee salaries is a priority for four out of five companies.

“Adding to these pressures is the fact that small businesses often have to deal with late payments from customers, which can have a real impact on cash flow,” Price added. “The upcoming holiday season is notoriously the slowest time for SMEs to pay their bills, so maintaining a steady cash flow is critical for a business to survive in these conditions. It’s the key.”

When applying for business funding, the immediacy of cash was a key factor for 32% of SMEs. Invoice finance allows businesses to access outstanding amounts as soon as an invoice is issued, avoiding delays between providing services or products and receiving payment.

Upon learning more about invoice finance, 58% of respondents believe it could be an effective option, and 53% believe they will consider using it in the near future.

Fintech Butn CEO Rael Ross said: “Businesses looking for ways to handle cash flow or find the capital they need to trade are often unaware of the financial options available to them to secure the cash they need when they need it. .”

Many small businesses are in the dark when it comes to non-traditional financing options

Source link Many small businesses are in the dark when it comes to non-traditional financing options

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