Amid stubborn global inflation, tightening monetary policy, and continued impacts on energy and supply chains, it’s important to see how small businesses are managing their cash flow.
Cash flow is king again, and freeing up cash could make a difference for many in the year ahead. Many small businesses likely have a lot of capital tied up in accounts receivable and inventory, which they can turn into cash. toddlingzero company, and Commonwealth Bank of Australia Resolved with (CommBank) Stream Working Capital.
In June 2021, CommBank will Working capital flow Partner with Waddle to give businesses access to funds using outstanding invoices as loan guarantees. CommBank’s digital lending solutions have provided customers across Australia with rapid access to cash flow, helping them to operate and grow their businesses faster.
Meet Elizabeth Huxley, General Manager of Working Capital at CommBank working capital flow, Find out what’s next for the CommBank and Waddle partnership, how we can help small businesses facing tougher economic realities.
Solving Supply Chain Problems with Working Capital
Throughout 2021, small businesses battled with global supply chain bottlenecks and bare shelves brought on by unprecedented consumer demand boosted by COVID-19 lockdowns. Two years later, small businesses are moving away from the “just-in-time inventory model they once loved” and buying inventory earlier than expected to ease supply chain disruptions.
Combank customer data reveals that companies hold inventory for an average of four months before selling. The cash cycle (the time it takes to cash an investment in inventory) has increased from 55 days in 2020 to over 100 days in 2022. At the same time, suppliers demand early payment to stay within credit insurance limits.
High accounts receivable and high inventories means a lot of cash is locked up in working capital, leading to increased demand for working capital financing solutions, Elizabeth explains.
“We hear from customers that they want to hold more inventory and build relationships with more suppliers to ease disruptions in their supply chains. They also want suppliers to get paid faster. We are also facing pressure from buyers who want to extend payment terms.”
“Working capital flow enables businesses to access financing quickly, easily and affordably. It helps you streamline your daily cash flow and pay your suppliers, staff and bills early or at least on time. It also helps you respond quickly to new business opportunities. ”
this was especially helpful Brisbane-based company PromoGearWhen corporate events resumed in 2022, companies faced a sudden influx of large clients bringing in big deals. Demand for Rapid Antigen Kits (RAT) surged, Working capital flowPromoGear has been able to access immediate funding to ensure a continued supply of RAT and to fund its growth.
Breaking away from traditional lending formats
In Australia, small businesses have typically used fixed assets such as homes and commercial properties to secure loans and have relied on traditional credit to meet their cash flow needs. An increasing number of small business leaders are now adopting alternative forms of financing, including: Jarrod McGrath, Founder and CEO of a global human capital management consultancy, said: Smart WFM.
Jarrod needed working capital to cover a 90- to 120-day gap in hiring new staff and receiving cash from new employees. However, because his existing invoices and his financer were charging him 30% interest, Jarrod avoids debiting the facility unless absolutely necessary, affecting his ability to grow. was
“Working capital flow Customers like Jarrod are in control of when and how they use the facility. Companies will only be charged interest on the funds they withdraw,” Elizabeth said.
FLEXIBLE, FAST, SIMPLE CASH FLOW
For small business customers, Waddle’s technology Working capital flow Make the loan application process and in-life management fast, simple and easy. When you sign up, you simply agree to share your accounting and financial data. Working capital flow Assuming it’s a platform and the right criteria are met, you’ll instantly have suggestive offers. CommBank has most of the information needed to make credit decisions.
As Elizabeth explains, “Working capital flow It gave small businesses time back to run their businesses and no longer had to deal with endless paperwork in applying and managing loans. ”
What’s next for Stream Working Capital?
According to Elizabeth, CommBank and Waddle are just getting started.
“CommBank and Waddle have been in partnership for 18 months, Just getting started.I have plans to evolve Working capital flow By adding new features to the platform, to keep making us customer’s life When it comes to securing funding for your business, it’s simple and easy.”
Click here for details Waddle from zero and Working capital flow.
This information has been prepared without consideration of your personal and/or business needs and objectives.
Credit provided by Commonwealth Bank of Australia. Stream Working Capital products are only available for business purposes by authorized business customers. Loan applications are subject to CommBank’s eligibility and matching criteria, as well as the normal credit approval process. The minimum specified invoice amount is $15,000 per month. Stream Working Capital is subject to a facility limit of $50,000 or more. CommBank must agree to access the accounting software in order to evaluate the application and manage your account going forward. Loan offers include full terms, interest rates, setup fees and line fees. These should be considered before making a decision about these products. Bank fees and charges may apply.
To use Stream Working Capital, you must open or switch to a CommBank Stream Working Capital trading account if your application is approved. Fees and charges for this account are in addition to those associated with existing business transaction products. CommBank in the Stream Working Capital Transaction Account view Business Savings and Trading Account Terms and Conditions, financial services guide, e-banking terms and conditions and the Determination of target market, you should consider these before making a decision about these products. Bank fees and charges may apply.See Combank current interest rate.
Commonwealth Bank of Australia ABN 48 123 123 124 and Australian Credit License 234945.