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 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.”
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!
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