Options for small businesses
One thing I love about the Hinterland business community is the sense that we’re all in it together.
As owner of a somewhat untraditional small business, a bank branch, I really notice the support small businesses offer each other in our community.
I often hear great business management tips from other small business owners and find it useful to discuss the challenges and opportunities specific to owning a small business with other business owners in the area.
And being a bank manager, I find I’m in a pretty good position to be able to offer my small business clients a few tips about finance tools they can use to grow their business.
So, in the spirit of information sharing I’ve come to love about the Hinterland, over the next few months I’d like to share a few small business management tips for the Hinterland small business owners I haven’t yet had the pleasure of meeting.
The first tip is around cashflow management.
Cashflow Finance is not just for businesses having trouble meeting their repayments.
Many small businesses are starting to realise cashflow solutions can actually be a business tool, rather than simply a solution, and are cashing in on the opportunity to use debtor invoices to grow their businesses.
In fact, in Australia cashflow finance turnover has increased from $10.9m in 2000 to a whopping $63m in 2010*, proving that more small business owners are realising the benefits of this great cashflow and business management tool.
A flexible cashflow product can help you to capitalise on trade and offshore purchase discounts, employ additional sales reps to take advantage of market and competitor conditions, or pay creditors on time to obtain higher credit limits.
The benefits of cashflow finance include:
- Fast turnaround. When the bank knows your business, cashflow needs can be met within 24 hours.
- Confidentiality. Cashflow finance is conducted between the business and the bank. Debtors needn’t know that the bank is advancing against invoices.
- Growth. Using cashflow as a business practice gives you the opportunity to employ additional staff to take advantage of market and competitor conditions.
- Leverage. Businesses can pay creditors on time and obtain higher credit limits.
Now obviously the type of business you’re in, your current financial situation and your business strategy all need to be taken in to consideration when considering whether you need a cashflow solution, so make sure you talk to your financial adviser before making any decisions. But I think it’s handy to know about all of the products available to you, as they can actually help you think outside the box!
* Source: Institute of Factors and Discounters. Fees and charges and the Bank’s standard credit assessment criteria apply.
BOQ – Your own personal bank
1 Maple St, Maleny Phone 5499 9855
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