In recent years, external market conditions, rising inflation, and interest-rate hikes have made it increasingly difficult for many businesses to stay solvent. Indeed, during 2021 an incredible 92% of small business owners in Australia said they had experienced at least one month of negative cash flow, and one in five said it lasted more than six months.
In addition to these pressures, business owners are grappling with a myriad of other risks, including cash flow uncertainties, competitive pressures, and the complexities of tax obligations.
In such challenging times, the strategic use of finance solutions can play a pivotal role in not just mitigating these risks but also in proactively managing and overcoming them. By leveraging tailored financial strategies, businesses can effectively shield themselves from the adverse impacts of market fluctuations and regulatory changes, safeguarding their profitability and long-term viability.
1. Invoice financing for cash flow risk
If your business is at ‘cash flow risk’ it means you could potentially mistime your financial inflows and outflows, which can subsequently lead to overdue bills, missed repayments and upset suppliers.
As cash flow problems are the leading cause of business failure in Australia, it’s important to stay on top of your obligations. That’s where invoice financing can provide much-needed support. At Ezi PL, for example, our invoice and cash flow finance solutions help our clients keep the ball rolling when they need to take care of bills, meet repayment deadlines and seize new opportunities for business growth.
2. Property and asset loans for competitor risk
Speaking of new opportunities, your business will need the requisite capital to take advantage of time-sensitive prospects whenever they arise. But the nature of small business often means you don’t have the savings to jump on every lucrative opportunity. This can raise the chance of competitor risk – that is, where your competition takes advantage of a situation to put themselves in a more attractive commercial position, and reaps the benefits of a wider audience.
If you want to grasp opportunity before it slips through your fingers, consider the benefits of a commercial property loan. If you’ve outgrown your old premises or want to open up a new location in a prime area, for example, a hassle-free commercial property loan could be the most viable solution for growth. Taking advantage of the best assets to keep your business functioning is also essential to thwart your competitors, which is why asset and equipment loans are so popular with our ambitious clients.
3. Tax debt loans for GST, super, PAYG and tax risks
Then there are the administrative tasks that can easily fall by the wayside and add up over time. Tax risk is something you should avoid as best as possible, as it can put you on the wrong side of the ATO while also result in fines or worse.
If you want to eliminate the paperwork and stress from your work life, ask the experts at Ezi PL how a tax-relief loan can help. Use them to cover your obligations for GST, superannuation, PAYG and more – to give your business the breathing room it needs to thrive.
“Business owners can take advantage of a wide range of Ezi services to help reduce their overall risks,” says Gary Rawlings, Managing Director at Ezi PL. “Our experts will match the right lending solution to your specific needs, no matter what situation you find yourself in. That means you can overcome issues like cash flow woes and negative market conditions to get back to what’s most important: running your business.”
Minimising and managing risk as a business owner is made easy when you have access to a range of commercial lending solutions. Speak to the experts at Ezi PL or call 1300 854 033 to find out how we can help.