Ensure your business is prepared to take on challenges and opportunities with cash flow loans, debtor funding & equipment refinance through Business.Finance. Before getting into holiday mode, it may be astute to assess how your operation is placed coming into the new year. Was 2024 a challenge or did it bring opportunities? While discussion around high inflation cost-of-living pressures focus primarily on consumers, commercial operations are equally impacted by these and other economic conditions.

The outlook for 2025 may vary for different industries and for individual business operations. While builders face multiple challenges, in its November 19 release, the Australian Construction Industry Forum (ACIF) forecasts moderate growth for the sector. The ACIF said that despite the economy slowing, the amount of work in the pipeline should drive growth in the sector.

Proposed tariff changes by the incoming US administration may be an issue for some businesses to consider, with potential positive and negative effects, depending on the industry sector. Businesses might also keep an eye out for the Mid-Year Economic and Fiscal Outlook, MYEFO as an indication of what may lay ahead for the Australian economy. Federal Treasurer Jim Chalmers is due to release MYEFO early in 2025, ahead of the federal election. Then in February the RBA will announce its first interest rate decision for the year.

The significance of global and domestic economic conditions on turnover, sales and activity will vary for individual businesses. Ready to capitalise on opportunities as they present? Enter new markets, take on different projects? Are you prepared to withstand any challenges? As you assess what 2025 may hold for your operation, include a review of the commercial credit options available to address different requirements.

Cash Flow Loans – Flexible Options

Having the funds available to meet immediate expenditure can at times be a challenge. Whether it be an unexpected fall in turnover or income, or unexpected expenses. Support for short-term shortages or ongoing fluctuations may be provided through a number of commercial credit products.

Business Overdrafts and Lines of Credit are the most widely used forms of commercial credit to support immediate funding needs. These facilities may be set-up over a set timeframe or as an ongoing facility.

Limits are established when lenders assess the application, which includes the financials and credit profile. Businesses can use overdraft funds for a broad range of purposes – purchasing materials and stock, wages, rent, operating expenses etc. They can use as much or as little as is required at any time with the funds usually replaced when income is received.

While interest rates on overdrafts are higher than for secured commercial loans, interest is only charged on the funds used each month – interest is typically charged monthly at a variable rate. This facility may provide flexibility for many businesses to embark on new projects, expand facilities and product lines, take on more staff to handle increased orders, and to overcome any seasonal income issues.

Where a set amount of funding is required for non-asset purchases, a Secured or Unsecured Commercial Loans may be suitable. This form of credit will have a fixed rate and be arranged over a fixed term, with fixed monthly repayments. Secured Commercial Loans attract a lower interest rate than overdrafts and may present a more cost-effective solution for a wide range of purposes and purchases.

Where a large annual insurance premium is causing pressure on available funds, speak with us about our Insurance Premium Funding facilities. This credit facilities allows large premium payments to be spread over the year in instalments rather than having to be paid in one lump sum.

Support Cash Flow with Debtor Funding

Where shortages in funds are the result of customers taking extended times to pay invoices, Debtor Funding may be the solution. This specialist form of commercial credit involves lenders paying a percentage of invoice values at the time the invoices are issued, and the balance when they receive the full amount from the debtor.

Businesses can determine the amount of the invoice value that they require initially to meet their expenses. Interest is charged on the amount outstanding plus lender fees. Speak with us about the details of this credit facility and how it may be useful for your operation.

Refinance to Ease Cash Flow Pressures

If repayments on existing finance such as for equipment, machinery, trucks and vehicles are putting pressure on monthly finances, refinancing may be considered. The purpose of refinancing is to set up a new loan arrangement to replace the existing one. The new loan will typically encompass the full amount outstanding on the current loan and the applicable fees and charges.

Where current repayments are the pain point, our brokers work to securing refinance with a lower monthly payment. This may be achieved by extending the term of the loan. For quotes on refinance, speak with one of our brokers.

For workable cost-effective cash flow loans solutions and specialist commercial credit,  speak with one our brokers on 1300 000 033  

DISCLAIMER: THE SPECIFIC PURPOSE IN PROVIDING THIS ARTICLE IS FOR GENERAL INFORMATION ONLY. IT IS NOT INTENDED AS THE SOLE SOURCE OF FINANCIAL INFORMATION ON WHICH TO MAKE BUSINESS FINANCE DECISIONS. BUSINESS OWNERS WHO REQUIRE ADVICE OR GUIDANCE AROUND THEIR SPECIFIC FINANCIAL CIRCUMSTANCES ARE RECOMMENDED TO CONSULT WITH AN ADVISOR OR ACCOUNTANT. NO LIABILITY IS ACCEPTED IN REGARD TO ANY MISREPRESENTATIONS OR ANY ERRORS RE ANY DATA, SPECIFICS, POLICIES AND OTHER INFORMATION AS SOURCED FROM OTHERS