Cash flow the biggest issue for the next quarter

October 9th, 2014

Cash flow is becoming a big concern for small businesses. Cash flow is becoming a big concern for small businesses.

Companies are concerned about their cash flow heading into the next three months, at least according to the most recent figures from Dun and Bradstreet (D&B).

The company has surveyed the attitudes of Australian companies towards their financial positions, with 26 per cent suggesting that cash flow would have an impact on their operations through the rest of the year.

This beat other important issues for businesses, with insurance rates (12 per cent) and the exchange rate (11 per cent) also featuring among the biggest concerns for Australian firms.

For suppliers, the study also contained some worrying news. Roughly 40 per cent of firms indicated that they would miss payments to trade suppliers if they were unable to meet these costs. This was double the number who were prepared to miss payments on a business credit card (20 per cent).

While this might pose a challenge for businesses, there are still tools that companies can use when struggling to make ends meet. Debtor finance is one option - with this making it easy for companies to make the most of their unsettled invoices and in turn help to finance future growth.

With 20 per cent of companies in the D&B survey already looking for new financial products to unlock future growth, it is clear that many companies are already looking for alternative financing methods.

Although this study suggested that many companies are concerned about their financial future, there was also some good news to come out of the survey.

In particular, there was a significant growth in the number of firms that are positive about the next few months, with 68 per cent indicating they are high hopes for greater expansion this year. D&B's employment expectations index also rose sharply, suggesting many companies are prepared to take on more staff in coming months.

NSW & ACT
Level 11, 201 Miller St.
North Sydney NSW 2060
VIC, SA, TAS & WA
Level 13, 390 St Kilda Road
Melbourne VIC 3004
QLD & NT
Level 10, 410 Queen St.
Brisbane QLD 4000

© 2021 All rights reserved.