With less than a month until the end of the financial year, brokers are being encouraged to engage their SME clients and assess whether they need support.
The looming end of the financial year (EOFY) has presented an opportunity for brokers to reconnect with their small and medium-sized enterprise (SME) clients, as many seek to navigate cash flow pressures, tax obligations, and broader economic challenges.
Recent guests on The Adviser’s In Focus podcast have highlighted why this EOFY is expected to be particularly challenging for some SME owners.
Small-business owners across the country continue to bear the brunt of high input costs, inflationary pressures, and the impacts of global uncertainty.
This EOFY, new super rules and an increase to the minimum wage will add further stress.
Under changes to payday super, employers will be required to pay employees’ super contributions within seven business days of each pay run.
For many businesses, moving from four payments a year could add a strain on cash outflows.
Meanwhile, the national minimum wage for employees not covered by an award or enterprise agreement will increase to $1,004.90 per week or $26.44 per hour.
Both changes will apply to all businesses from 1 July 2026.
Fit for purpose
The role brokers can play in helping business owners navigate these challenges has been a recurring theme among recent guests on The Adviser’s In Focus podcast, who have highlighted the value of proactive finance guidance during periods of change and uncertainty.
Speaking to The Adviser in May, Banjo Loans CEO Guy Callaghan said brokers are increasingly important to business owners and what they’re doing.
“It’s helping with that ease of process, but it’s also really important for the broker to understand the business and why they need funding and then finding the right lender,” he said.
“Price is the number one consideration – the interest rate that is being charged. However, now we’re seeing a drop-off where they’re wanting to make sure that the loan is fit for purpose.”
Callaghan also noted many business owners are taking longer to make a decision.
“We’re seeing this in all of our data. We will conditionally improve a loan, and now they’ll sit on it until they really need the money – like a line of credit or whatever it might be,” he said.
“They know they’re going to need it. For example, the project hasn’t started yet, so they’ll wait until the project actually starts, until they draw it down.”
Broad perspective
Working capital solutions are another option for SMEs looking to navigate an uncertain environment.
In an appearance on In Focus in April, Earlypay CEO James Beeson said brokers have an important role to play in advising business owners who are often focused on running their day-to-day operations and may not be across the full range of funding options available to them.
“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,” he said.
“Just like their accountants and other advisers, brokers are front and centre on that. It’s an opportunity to think holistically about how they can help clients.”
One way to engage clients is by stress-testing their business.
“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?” he said.
“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.”
Suite of solutions
In May, Reid Davidson, state lead for Victoria, South Australia, and Tasmania at working capital lender Lumi, also discussed the ways brokers can support clients during EOFY – not just through a single transaction but by providing a broader suite of tailored funding solutions.
“Brokers are increasingly becoming the point where different funding needs all come together, not just one transaction,” he said.
“And the ones doing it well are shifting from reactive to things coming in their door, to going out and finding these business opportunities and finding ways to help their clients.”
[Related: Brokers warned to be prepared for onslaught of investor queries]
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