One of the biggest challenges for companies is getting the right approach to their cash flow. While this process can be incredibly stressful, new research from RSM Bird Cameron suggests that Australian companies are finding it easier to achieve a regular flow of cash.
The company's most recent survey of business confidence revealed that fewer companies reported experiencing significant stress as a result of cash flow. In 2013, this measure recorded a score of 5.6, down from the 6.8 reached in 2009.
With the study going on to find that 69 per cent of companies are relying on cash flow to fund their business, the decline in concern around cash flow is sure to be a good sign for small-business managers.
One possible reason for the increase in positivity is options like debtor finance. By assigning unfilled invoices to an external partner, businesses can achieve a much more regular stream of payments throughout the year.
While cash flow continues to be an area of concern for small businesses, the study also revealed some positive trends for firms. Many companies are optimistic about their future revenue, with 46 per cent reporting income growth over the last 12 months.
A further 64 per cent of companies are expecting growth in coming months, with many forecasting an increase in marketing activity and entering new markets to help them drive future growth. While this remains a positive area of expansion, 42 per cent are reporting difficulties with finding skilled people, while 17 per cent are struggling with access to capital.
With so many Australian firms recording strong growth and a positive attitude towards the future, financial conditions are looking good for the country's small businesses.
If you'd like to learn how Earlypay's Invoice Finance & Equipment Finance can help you boost your working capital to fund growth or keep on top of day-to-day operations of your business, contact Earlypay's helpful team today on 1300 760 205, visit our sign-up form or contact [email protected].