The COVID-19 pandemic is impacting everyone. Even those fortunate enough to avoid contracting the virus are faced with an economic crisis, unlike anything most of us have ever seen. Small and medium businesses have been hit especially hard, and many are fighting to survive.
Many businesses have been forced to close, scale back, or change their offerings. Customers are staying at home and avoiding spending.
Taking care of your employees and preparing your business to come out on the other side of this requires careful cash flow management in this unprecedented time. There are a lot of things small and medium businesses can do right now to mitigate the impact of the Coronavirus on their business. Start with these cash flow management tips.
The cash conversion cycle is a great measure to track how your working capital is changing relative to the state of your business. Typically, your focus is on managing inventory and sales. Paying your suppliers and partners is something that happens naturally and easily when your business is making money and you are getting paid. During difficult times, you need to bring extra focus to your expenses and carefully consider the entire cycle. Your cash conversion cycle may become longer due to the effect of COVID-19. It’s important to communicate with your suppliers and partners to enter into any necessary payment arrangements while managing your bottom line.
Understanding and limiting your customer’s risk is part of our business DNA. With over 30 years of experience, while using the latest risks-management technology, you can rely on us to provide advice on your debtors’ creditworthiness. We also conduct and provide free credit reports to our customers to help them assess whether they should extend credit to a customer.
Think of us as an extension of your accounts team. We monitor your debtors and their accounts, help follow up on payments, and send statements of accounts to your customers. We don’t charge a monthly admin fee or annual fees. It is all part of the included benefits. This allows you to keep money flowing through the business while gaining access to efficient operational support.
Every business has areas where they can cut back, especially in times like these. Some of it may be obvious-for example, you can eliminate most or all of your travel, which is currently a matter of safety as well as cost-savings. You’ve probably already put a temporary freeze on hiring or training. Focusing on re-marketing to existing customers is a great way to reduce advertising costs. Connecting with fellow small businesses to brainstorm ways to cross-promote each other also has cost-saving benefits. For many small to medium businesses, a combination of these strategies and others will help pave the way forward. If improving your cash flow is one of your strategies to get through COVID-19, contact us. With over 30 years of experience, we have established ourselves as Australia’s leading independently owned debtor finance company. We have worked with manufacturing, wholesale, recruitment, labour-hire, mining, IT, business services, transport, logistics, and many other businesses all over Australia to help them maintain steady cash flow. We can do the same for you, especially now.Apply online, fill out an enquiry form, or call us on 1300 884 100 now to find out more.[/st_text][/st_column][/st_row]