Are your cashflow needs in order ahead of the summer trading season?

Blog 1100x733 festive stock 2021

The summer trading season poses a raft of tricky cashflow and stocking challenges for retailers at the best of times, let alone following a global pandemic slowdown. But if done well it can set your business up nicely for the good times ahead.

Ahh summer, how we’ve longed for you – especially this year as much of the nation reopens its stores and borders following another winter of lockdowns.

But there’s just one (more) challenge facing many business owners this year.

Fewer than half (49%) of Australia’s small businesses have the trading stock in place to make the most of the end of lockdowns, according to research by small business lender OnDeck Australia.

And to make stock ordering matters even more tricky, 44% of small businesses say their cashflow has suffered as a result of lockdowns.

The findings aren’t too different from a recent Prospa survey, which found that 37% of SMEs required access to finance to ride Australia’s reopening wave, with the average amount of financing $46,000 per business.

For SMEs less than five years old, that figure jumps to $58,000.

The importance of cashflow during the global pandemic

The top reasons cited in the Prospa survey for requiring additional funds included purchasing tools, equipment, or machinery; restocking inventory; and investing in digital software.

The Prospa survey also found that 87% of respondents feared opportunities could be missed without access to additional finance.

Mr Nick Reily, National Partnerships Manager at OnDeck Australia, said with the pandemic continuing to create significant disruptions to global supply chains, cashflow can be critical for small businesses in the re-stocking process.

“Today, businesses need to be able to act fast, and order stock well in advance given possible delays in procurement,” he explains.

“When businesses have appropriate cashflow funding in place, they are in a strong position to have conversations with alternative suppliers if their regular supplier cannot have stock to them on time.”

Get in touch to find out about cashflow solutions for your business

If you think you might have a gap in your business’s cashflow over the months ahead, then it’s important to start considering your funding options before the summer trading season really heats up.

The sooner we can take you through your options, the better your stock levels can be ahead of the Christmas and new year period!

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

We thought you might also like...

0033 BLOG 29 6 smart ways to attract quality tenants

Six smart ways to attract quality tenants

When your investment property lies vacant for even a short time, your earnings can take a big hit. So how do you get the best out....
Read More >
Blog 1100x733 new year 2021

Happy New Year! Here’s to a prosperous 2021!

Well, that was a year for the history books. Time to start looking forward, we reckon! And the good news is 2021 offers plenty of....
Read More >
Five top online homeware stores

Five top online homeware stores

When it’s time to deck out your new home, make sure your laptop’s fully charged and you’re ready for some high-powered....
Read More >
Blog 1100x733 covid next phase

SME credit demand improves, lenders begin next phase of COVID-19 support

Things are starting to look better for small business owners across the country with just 5% of deferred business loans yet to....
Read More >