End-of-year (EOY) should be a time for celebrating with family and friends, but small business owners are often distracted thinking about cash flow.
Just when they need the resources to make the most of the season, their income might be unpredictable and they could be waiting for their invoices to be paid. Businesses like retail and hospitality will likely need to invest in additional inventory or supplies, which places extra demands on cash flow.
A Prospa short-term loan can help small business owners manage these challenges and can give your clients a chance to focus on important things, knowing that cash flow won’t be a problem. Read on to find out how you can help your small business clients switch off and make the most of the festive season.
Work intrudes into leisure
Many small business owners will tell you they went out on their own because they wanted greater independence and flexibility.
They wanted to build something real for themselves and their families, and have more freedom to choose when and where they worked.
The reality is not always so simple. Small operators often find that even when they are physically present with family and friends, their minds wander off to the problems waiting for them back in their business, and this can be more prevalent than ever during the EOY period.
Complications of the season
Reasons for the cash flow squeeze vary from industry to industry. As a broker, understanding the seasonal factors affecting your clients means knowing when they are likely to need cash flow support the most.
Retailers, for instance, build up stock from October onwards and often have to wait until Christmas to see it turn back into cash.
Construction companies and those supporting the construction industry gear up for the new year by purchasing materials and equipment in November and December. They then experience a significant delay in receiving a return on this investment as much of the industry shuts down for an extended break.
While restaurants and cafés in holiday areas peak during the summer, many others use a quiet January to remodel their premises. They may love the change of pace and the opportunity to work on other business tasks such as renovations, but the silence from the cash register is not so enjoyable.
Professional services providers may also relish a summer away from the desk, but the office remains a burden on cash flow in the form of rent, taxes and salaries.
Prospa tip: Use the cash flow tool to help your clients estimate their cash flow needs ahead of the EOY period. The projection will reveal any gaps and highlight where they may need a short-term loan.
Time to breathe
As a broker, you can help your clients get through end-of-year with a small business loan designed to take the pressure off at a crucial time.
A Prospa business loan gives your clients the support they need to fund the extra costs, tide them over during delayed payments, and grab the opportunities that come up at this time of year.
Partnering with Prospa makes it easy to provide your small business clients with access to the cash they need to grow. Call us today on 1300 964 808 or email [email protected] Apply to be a Partner here. Log in to the Prospa Partner Portal here.