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Christmas Cashflow: Is your business ready for summer trading?

The summer trading season poses a raft of tricky cashflow and stocking challenges for retailers at the best of times, let alone following a global pandemic slowdown. But if done well it can set your business up nicely for the good times ahead.

Bliss! Summer has finally arrived, and how we’ve longed for it. Especially this year, as much of the nation reopens its stores and borders following another winter of lockdowns.

But there’s just one (more) challenge facing many business owners this year.

Fewer than half (49%) of Australia’s small businesses have the trading stock in place to make the most of the end of lockdowns, according to research by small business lender OnDeck Australia.

And to make stock ordering matters even more tricky, 44% of small businesses say their cashflow has suffered as a result of lockdowns.

The findings aren’t too different from a recent Prospa survey, which found that 37% of SMEs required access to finance to ride Australia’s reopening wave, with the average amount of financing $46,000 per business.

For SMEs less than five years old, that figure jumps to $58,000.

Cashflow watch-outs in the global pandemic landscape

Mr Nick Reily, National Partnerships Manager at OnDeck Australia, said with the pandemic continuing to create significant disruptions to global supply chains, cashflow can be critical for small businesses in the re-stocking process.

“Today, businesses need to be able to act fast, and order stock well in advance given possible delays in procurement,” he explains.

“When businesses have appropriate cashflow funding in place, they are in a strong position to have conversations with alternative suppliers if their regular supplier cannot have stock to them on time.”

The top reasons cited in the Prospa survey for requiring additional funds included purchasing tools, equipment, or machinery; restocking inventory; and investing in digital software.

The Prospa survey also found that 87% of respondents feared opportunities could be missed without access to additional finance.

Consider your funding options now, before things really heat up

If you think you might have a gap in your business’s cashflow over the months ahead, then it’s important to start considering your funding options before the summer trading season reaches its peak.

David Crook, Managing Director of Nero Financial says planning ahead has always made good business sense, but is even more critical in times of uncertainty.

“Making sure you have cash coming in to cover business-critical resources and supplies should be your first priority – and there are plenty of lending options available,” he says.

“After a such a tough couple of years, this summer is a real chance for many businesses to get back on their feet; and we want to see our clients in the best position to benefit.”

Call David and the team at Nero Financial today on 1300 025 949, or at to ensure your business is summer-ready.