7 signs your business may need to seek out funding solutions
COVID-19 has hit the economy badly, but with hardship can come opportunities. Don’t let finance hinder your business transformation – discover the opportunities and signs to look out for.
running a business in the new normal
Operating a business has become increasingly stressful in the current economic environment. In recent years, we’ve seen businesses tested by a variety of natural disasters including flooding, drought, bushfires, and the current prevailing COVID-19 global pandemic.
Whilst some businesses have experienced a downturn in trade, others have adapted, taking advantage of opportunities to modernise and digitise their business. Staying relevant and ahead of your competition is crucial in tough times.
All too often, business owners are not aware of the funding options available, especially if it’s been some time since you’ve surveyed the market. In recent years, new and innovative funding solutions have been made available.
what are the top 7 signs your business may need to seek out funding solutions?
- You’re pivoting your business. Thinking outside the square and collaborating with your professional advisers can put you on the road to business growth. You may need quick funding for:
- Investing in digital
- Investing in distribution
- Changing product lines or services
- New equipment
- Upgrading old or dated equipment
- Unable to expand into new markets or territories. Often when we are presented with challenges, new opportunities can emerge. When these happen, fast action is required to secure new business. Although, you may see cashflow issues preventing you from seizing these opportunities, such as:
- You’ve reached your loan capacity
- You’re unable to acquire new premises
- You’re unable to hire more staff – labour, contractors etc.
- Unable to take on ‘large’ client contracts
- Current funding is maxed out. You may have had funding solutions in place which have served you well, but lately, they’re not quite meeting all your business funding needs. These symptoms may feel all too familiar:
- Pushing on funding limits regularly
- Going over the limit at times
- Limit no longer reaches the end of the month
- You’re on a never-ending accounts payable merry-go-round
- You’re having to dip into personal funds to meet the business needs. It may sound harmless, and even feel like the only easy option at the time, however, using personal monies to prop-up your business can cause more problems and headaches than you think. You may need to speak to your accountant if you’re relating to these warning signs:
- Your own personal monies are required to meet business cashflow shortfalls
- The line between business and personal is blurred
- You’ve not been able to return the personal funds you lent the business
- Debtor accounts are slow to pay. Although these issues are incredibly frustrating, they may be your key to unlock fast funds:
- Customers are not paying on-time
- Business cashflow needs are affected
- Chasing up customer payments
- Financial commitments are overdue. Cashflow obligations weighing upon you doesn’t mean your business is failing. If you’re experiencing any of these pressures, help may be just around the next corner:
- ATO tax debt obligations causing stress or not being met on-time, every time
- Payroll and superannuation obligations falling behind and not being paid on-time, every time
- Creditors are chasing you for payment
- Incurring late payment fees
- You’ve been declined finance by your bank. When the bank says no, it doesn’t mean you’re not creditworthy. It could simply mean they don’t have an appetite for the funding required by your business needs, right now. If you can tick any of these after speaking to the bank, you may need another opinion:
- You don’t understand why the bank said no
- You know you have a healthy business
- You know you can pay the money back
Thornmoney’s invoice finance solution allows you to turn unpaid invoices from your customers into fast funds within 24 hours since approval. With no lock-in contract, it is as simple as connecting your accounting software with our platform.
Many businesses are seeking advice from their accountants and finance experts to ensure they are doing everything possible to thrive in, or at least survive, these difficult times.
You learn more about how thornmoney is helping Australian business owners solve their short-term funding issues, fast!
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