If we can provide them with cash flow needed now quickly and hassle-free, it will take the clients through this stage of market where inflation is a big challenge and be ready for the next stage.

Mihir Gandhi, Flawless Financial Services

Negotiating customers’ needs

The banks are quite nervous about what's taking place for small business owners, they’ve had it pretty tough with COVID supply chain issues and, now, rising interest rates. The banks are concerned about the future and whether there's going to be a business downturn and - coupled with that - there's likely to be rising employment costs and material costs.

We’ve therefore been working with the banks to assist the customer with their changing needs in business, or negotiating with the banks to lower their interest rates.

Most of the transactions we're doing the customer has a particular need and, as brokers, I think we need to understand the why and what of the need. You need to be sitting down with your customer annually to review their current business loans (in conjunction with the bank and the customer), as well as reviewing the performance of the business and what's happened over the last 12 months to understand the business owners’s needs going forward and negotiating for those needs.

Grant Rheuben, Rheuben & Associates

Clearing ATO debt

The amount of inquiries I'm having for people to try and clear [their debt] because the ATO is now coming down hard is growing. They're starting to garnish, which means they can actually take money out of the SME’s bank account to get what they're owed. It’s really important to reach out to clients and educate them on what this means for future serviceability.

You need to deal with this before it becomes a problem. For example, if we go to a major bank and try and apply for business finance and there's tax debt, 99 times out of 100 it's a no. The major banks won't give them business finance, if they owe money to the ATO.

Where we can help is by helping SMEs access non traditional lenders, non conforming second-tier lenders that specialise in clearing that up.

So, often, we're triaging these clients. We’re going to clear it up [with a non major] get rid of the ATO debt, and potentially take the SME back to a major bank [when it’s sorted], probably in 12 months.

Phil Verheijen, Professional Lending Solutions

Assisting businesses for growth

As a finance broker, my goal is to provide ongoing assistance to business owners in obtaining and utilising the right finance products as their tools to run and grow their businesses. With the past 12 months posing numerous challenges, including rising interest rates, increasing costs of goods, and ATO pressure for outstanding payments… I’ve been working with clients to help them overcome challenges and achieve their desired goals while running their business smoothly.

By building a long-term relationship and understanding their business, I’ve been assisting them to smooth out their cash flow challenges due to all the increased costs and commitments and enabling them to keep going and growing.

Many are still looking ahead in 2023 and seeking new acquisitions and opportunities, so my role has been to find the right finance products to suit their needs and provide them with the necessary information to achieve their business goals.

Mizuho Choi, Fundamental Business Finance