Against a challenging economic backdrop, pressure is building on Australian small and medium-sized enterprises (SMEs) from all sides. We spoke to Earlypay CEO James Beeson about the forces driving this pressure, the risks for businesses that can’t manage their cash flow, and the critical role brokers can play in helping clients navigate the current environment.
Q. What key factors are driving pressure for businesses right now?
Businesses are facing pressure on all sides when it comes to input costs, and passing those increases on isn’t straightforward – especially when their customers are feeling the pinch.
It’s leading to a lot of pressure on margins at the moment. And with what we’re seeing in Iran, the risks are that high energy prices and fuel prices persist for a while and that this pressure isn’t going away.
There are also some regulatory changes that are coming soon. Payday Super is one of those. On 1 July 2026, SMEs will have to pay super at the same time as they pay salaries to employees. In the past, they’ve had up to three months to do that. So that brings forward that cash outflow.
But they won’t be getting paid any sooner from their customers, so they still need to find a way to fund that gap..
Q. What are the risks for businesses that can’t manage cash flow?
A shortage of cash flow is the number one contributor to insolvencies in Australia.
So, it should be at the top of mind for businesses and all of their advisers – brokers, accountants, and bookkeepers – everyone should be across this.
Q. How can brokers help businesses manage cash flow?
Brokers have an important role in advising business owners who are focused on running their business and may not have the headspace or time to consider other financial aspects that brokers are really good at.
But in times like this, where it’s a challenging economic environment, the value that brokers can add is enormous because there’s a lot of stress with many business owners.
For brokers to come in with experience and a fresh perspective and to be able to guide through this time, it’s a critical role. Just like their accountants and other advisers, brokers are front and centre. It’s an opportunity to think holistically about how they can support their SME clients.
Q. What else should brokers be thinking about in the current landscape?
Stress-testing client scenarios for the current environment is critical. Brokers should be asking: what happens if you can’t access stock for a while? What if consumer demand falls and order volumes decline?
From there, it’s about pressure-testing operational needs. Do you actually need the additional equipment you planned for if growth slows? Or, if demand was expected to increase and you’ve already committed to new orders, how exposed are you?
In some cases, it may be about holding capacity for growth – but in others, it’s about rationalising assets, reducing excess equipment, and preserving cash if demand doesn’t come through as expected.
I think being as holistic as possible is the best way to add value to your SME clients.
Q. What feedback have you received from brokers and SME clients, and how is that shaping Earlypay’s approach?
We have a big focus on being flexible and reliable for our brokers and our clients. That means being flexible, really trying to find a way to help. We’re not one of the black box lenders where everything goes through an algorithm, and it’s a ‘computer says yes or no’ situation. We really try to understand each business and understand what solution is best.
So doubling down on that with the way we offer our invoice finance and also equipment finance products is a big one. And being reliable with how we service our brokers and their SME clients.
Q. What benefits can Earlypay bring to brokers?
Invoice finance is probably the main product for us and for our small-business clients. We do a fantastic job there, and our customers love our offering.
We’ve tweaked our offering for mid-sized businesses, with a lighter-touch confidential invoice finance solution, which is being really well received in the market. And equipment finance as well.
On the equipment finance side, it’s about giving brokers real clarity on where we play and how we can support their clients. By structuring the offering across three clear use cases – unlocking working capital through capital raises against unencumbered assets, mid-term refinancing, and funding the acquisition of new or used equipment – it becomes much easier for brokers to identify opportunities and match the right solution to their clients’ needs.
That clarity is what’s really resonating with the marke
We’re really being seen as a place brokers can come and find a solution, even if it’s not always black and white.
For more information about how Earlypay can help brokers solve cash flow issues, click here.
Tune in to hear more!
Find out more about the challenges facing SMEs and how commercial brokers can benefit from Earlypay’s working capital solutions in the In Focus podcast episode, ‘Why cash flow matters now more than ever’, here:
