Finance brokers are being encouraged to initiate conversations about seasonal cash flow needs now, as the peak trading period approaches.
Non-bank lender Banjo Loans, which specialises in finance to small and medium-sized enterprises (SMEs), is urging nortgage and finance brokers to proactively engage with their commercial clients ahead of Australia’s busiest retail quarter.
Many businesses will likely need to prepare for a packed calendar of sales events from September through December, with this three-month period including a range of holidays and retail-driven events, such as Father’s Day, spring sales, Black Friday, Cyber Monday, and holiday shopping, all driving significant revenue opportunities.
Retailers, e-commerce businesses, and seasonal service providers – including floristry, events, and beauty sectors – face particular exposure to demand fluctuations during this period.
The SME lender has warned that many businesses miss critical funding opportunities, and in turn sales opportunities, because they fail to prepare months in advance.
Banjo flagged that sales spikes can stretch or supercharge cash flow, with many businesses preparing for strong competition this year due to ongoing cost-of-living pressures.
It has therefore reminded brokers that this presents an opportunity to demonstrate strategic value beyond traditional loan facilitation by initiating conversations about seasonal cash flow planning well before demand peaks hit.
Speaking to The Adviser, Brendan Widdowson, the chief commercial officer at Banjo Loans, commented: “These events aren’t just shopping opportunities, they’re golden windows to drive revenue, strengthen customer loyalty and fuel growth.
“But seizing these moments requires preparation, resources and access to the right funding.
“Now is the time to engage with clients, not just to talk funding, but to truly understand how their business is travelling.
“Ask them, what’s their plan to seize the revenue opportunities in the upcoming busy retail season, and check that they have the resources to execute it.”
Widdowson emphasised that businesses should already be well into their preparations, focusing on three critical areas:
- Cash flow forecasting: Reviewing projections to identify potential shortfalls during peak trading periods.
- Operational readiness: Confirming adequate stock levels and staffing requirements, and that their financial records are up-to-date.
- Funding arrangements: Securing appropriate finance solutions before they’re needed.
“Brokers should be initiating these conversations early, reviewing cash flow projections with clients, identifying stock or staffing gaps, and helping them understand whether funding is the right lever to pull,” Widdowson said.
“Ultimately, brokers are closest to their clients. They’re not just facilitating loans, but they’re strategic partners who know how a business is positioned financially and how to help it move forward with confidence.”
The call to action comes after research from Lumi found that a growing number of SMEs are turning to brokers for assistance with growth and cash flow issues. According to the research, many SMEs are planning to raise finance in the next year and are using brokers to access a wider range of funding options and for working capital.
This trend, combined with end-of-year financial pressures faced by SMEs, presents a significant opportunity for brokers who can act quickly and anticipate their clients’ funding needs.
Several SME lenders have been launching new products to provide more solutions during the busy period.
Banjo Loans recently doubled the maximum amount available through its Express Loan product from $250,000 to $500,000; Bizcap has raised its lending limit for SMEs from $5 million to $7.5 million; while ScotPac has launched a credit facility designed to give businesses on-demand access to funds, with interest charged only on the amount they use.
[Related: More SMEs using brokers to secure finance]
