When the leaves start to fall off the trees, people might begin to be pessimistic about not only the changing of the seasons away from the lovely summer months, but also the business outlook.
How can SMEs in Australia combat this feeling, and ensure that slowdown doesn't occur? Well, accountants can take solace in recent figures from Dun and Bradstreet, and find out what invoice finance could do for your employer.
Business failures down in the second quarter
According to the New and Failed Businesses Report released in February, the second quarter of each year typically shows a significant downturn in the number of failed companies. The first quarter of 2013 saw just under 10,000 failures, which was up to around 12,000 a year later, and broke the 12,000 mark in 2015. The second quarter by comparison in 2013 saw only around 9,000 failures, which increased to just under 10,000 the following year and in 2015 actually dropped back to approximately the same level as in 2013.
Are business prospects turning around? Well, not necessarily right now, according to the Westpac-Melbourne Institute (WMI) SME Index.
According to the WMI, which sets a neutral mark of 100 points, current business conditions sit at just 88.6. However, the Future Conditions Index is more encouraging, coming in at 105.3 points.
"This may reflect stronger economic conditions in the major south-eastern states lifting professional services, better expectations around weather predictions for farmers and the lower AUD improving sentiment for hospitality and agriculture," said Julie Rynski, the Westpac general manager of SME.
A Dun and Bradstreet economic advisor, Stephen Koukoulas, shares that sentiment.
"There are clear signs of a turnaround in commodity prices which, if sustained, should be a positive for the economy, and the Australian dollar remains at a level which is boosting the competitiveness of the export sector."
How can businesses help themselves?
If you're looking at a way to help your SME out of a rut on the back of the current business conditions, then invoice finance might just be your standout solution.
Make the most of the changing seasons with invoice finance.
Waiting for clients to pay their invoices can be a frustrating time, and it often drags on for longer than a month. So, taking control of these unpaid invoices and freeing up some cash flow should be the goal, right? Well, Earlypay can help you there.
Quick turnaround times and a safe and simple business process means that you'll know what to expect at every step, and you'll also have some working capital to actually use in the company. Don't let your business be one of the few that fail in autumn - instead, make the most of the changing seasons.
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].