Working capital is becoming increasingly important for SMEs. This week’s Spotlight explores how changing cash flow pressures are reshaping the funding needs of businesses and the opportunity for brokers to identify where flexible working capital solutions can help.
As SMEs contend with higher costs, changing payment obligations, and tougher ATO debt collection, cash flow is becoming an increasingly important part of the growth equation. Broker Daily’s Julian Barnes catches up with Octet director working capital solutions – NSW, Dan Verdon, to explore how businesses are adapting and where brokers can play a role.
While a cash flow constraint does not necessarily mean a business is unprofitable or in trouble, it can prevent otherwise healthy SMEs from taking on new work, purchasing stock, hiring staff, or pursuing growth opportunities. For brokers, understanding where those gaps exist can open up new funding conversations with existing clients.
Inside the working capital shift:
- Payday Super and tougher ATO debt collection are adding new pressure to SME cash flow, particularly for businesses with large payrolls or outstanding tax obligations.
- Businesses are increasingly seeking flexible funding that can grow with them, with receivables finance and trade finance helping bridge gaps between invoicing, getting paid, and paying suppliers.
- Brokers can uncover working capital opportunities by looking more closely at existing B2B clients and identifying businesses with cash tied up in receivables or immediate supplier payment requirements.
Listen to find out how brokers can identify the working capital opportunities within their client books and help SMEs keep growth moving.
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