Powered by MOMENTUM MEDIA
the adviser logo
Broker

Brokers urged to help SMEs prepare for Christmas pinch

by Hannah Dowling4 minute read
Prospa

Two-thirds of small business owners feel stressed during the holiday period, largely due to cash flow problems, which brokers can help alleviate, SME lender Prospa has said.

According to a broker poll conducted by non-bank business lender Prospa during its Future proof your business: How to help SMEs avoid common business funding traps webinarmanaging cash flow is considered the major reason that SMEs seek out business finance solutions, with 53 per cent of brokers stating so.

Other reasons include finance for buying or upgrading equipment (20 per cent), business expansion (12 per cent) and meeting BAS or ATO debt (10 per cent).

Prospa's head of partnerships, Alex Brgudac, has now called on brokers to be proactive and prepare SMEs for any potential cash flow fluctuations during the holiday period.

Advertisement
Advertisement

“Staying on top of cash flow is a tough but essential part of running a small business, especially in the lead up to the holiday season,” Mr Brgudac said.

“Depending on factors like industry, location and customer habits, this time of year can be a business boom or tumbleweeds for SME clients – but both scenarios come with cash flow pressures. 

“Prospa research has shown that two-thirds of small business owners feel stressed during the holiday period because of cash flow problems.”

The SME lender highlighted the ways in which different businesses across different industries might experience varied cash flow during this holiday period.

While hospitality and tourism businesses gear up for their busy season, and retailers purchase extra stock for pre-Christmas sales, professional CBD SMEs might feel a cash flow ‘squeeze’ due to office closures and subdued demand.

Mr Brgudac said that Prospa has already seen these trends in action, and encouraged brokers to reach out now to help their small business clients prepare. 

“Brokers need to be aware that small businesses face different cash flow pressures during this time,” he said.

“Now is the time to be talking to your small business clients about their specific funding needs and the solutions available to them.”

[Related: Broker sentiment on the rise]

small businesses ta

Hannah Dowling

Hannah Dowling

AUTHOR

Hannah Dowling is a journalist for The Adviser and Mortgage Business.

JOIN THE DISCUSSION

You need to be a member to post comments. Register for free today

MORE FROM THE ADVISER

Stephen Hale ta

MFAA launches near-prime, specialist loan resource

Coined Finance for when your customer doesn’t fit the mould: A broker’s guide to near-prime and...

READ MORE
Daniel Newell Gedda

Specialist lender LoanU rebrands to Gedda

The personal and auto loan provider LoanU, which specialises in helping Australians with impaired credit histories...

READ MORE
tech tools

CBA introduces AI technology to combat scams

New figures released by the competition watchdog this week have revealed that Australians lost more than $2 billion...

READ MORE
magazine
Read the latest issue of The Adviser magazine!
The Adviser is the number one magazine for Australia's finance and mortgage brokers. The publications delivers news, analysis, business intelligence, sales and marketing strategies, research and key target reports to an audience of professional mortgage and finance brokers
Read more