The first two months of 2016 have already provided Australian businesses with great impetus for growth heading into autumn. But how are these companies planning on investing? No matter what the intentions, having available cash flow is important, and invoice finance is your solution.
Reports suggest that capital investment is on the up, and SMEs might be looking at growing and expanding, or even just shoring up finances.
Figures show impressive intentions
"We are finally seeing some positive movement in the capital investment space, which is encouraging."
Dun and Bradstreet Australia recently suggested that businesses were planning to increase their capital expenditure, with the Capital Investment Index up to 12.6 points for the first quarter of the year. Interestingly, the December quarter for 2015 showed only 11.9 points.With these figures, 23.1 per cent of businesses are planning to increase the finances invested in growth and that means having actual working capital is important.
"We are finally seeing some positive movement in the capital investment space, which is encouraging and something we will track for further signs of improvement in the short-term," said Adam Siddique, Dun and Bradstreet's head of group development.
"Sustained business investment across all sectors is a key driver of future economic growth."
On a different note, the Business Expectations Index points toward a drop of 2.9 points to 18.9 in terms of sales and profit. In the same quarter of 2015, that figure was 23.9 points and even though it has fallen since then, the 10-year average of 6.8 points is far behind Australian business.
So, where could businesses be investing?
Growing towards a new market
Advertising is a fantastic way to grow your target market, and many businesses in Australia are looking towards new technological platforms.
As advances in technology increase and become more accessible to SMEs, there will be a greater move toward these platforms.
IBISWorld reports that the advertising industry in Australia generates $2 billion annually. In 2014, IAB Australia found that expenditure from companies exceeded $1 billion for online advertising alone, which was a 17.1 per cent increase over the previous 12 months. The trend was even more highlighted in 2015, with expenditure of more than $1.5 billion and a growth of 33 per cent over the previous year. As advances in technology increase and become more accessible to SMEs, there will be a greater move toward these platforms.
In fact, Statista projects that total expenditure for advertising in Australia will exceed $16.5 billion by 2018, and learning lessons from the rest of Australian businesses could set organisations up for success.
Adding an online presence to your advertising strategy could be a very shrewd move, especially considering the amount of time people are spending in front of their screens. Doing this will require capital, however, and Earlypay is on hand to push your company toward a refreshed advertising strategy.
For example, Flurry Analytics tracks more than 2.1 billion 'smart' devices worldwide, and usage is growing every year. 2015 saw a 58 per cent increase in the amount of mobile sessions recorded, and while that figure is down on the 76 per cent of 2014 and 103 per cent seen in 2013, the continued growth really highlights this area as something for advertisers to target.
Taking control of your debts
When a business does run into some financial instability, it is of the utmost importance that they respond quickly so confidence in their company does not decline. For many, that means accessing funding that is not necessarily available, and that's where invoice finance can help.
The collateral that a bank requires can sometimes put pressure on business owners, or businesses themselves, when putting up assets for security. By providing Earlypay with unpaid invoices, you will be able to access a percentage of what you are owed by clients much faster than they would have paid you. That working capital in your hand will allow you to pay some of the debts hanging over a business, and thus increase financial stability.
Contact Earlypay today to see how they can help you secure your finances, or even push into a new market with advanced advertising strategies.
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].