Our most recent webinar explores the impact of JobKeeper ending last week, and how business owners and their advisors can prepare for the end of this stimulus package. ScotPac BDM Phil Freeman and special guest Steve Heavey of Hall Chadwick discuss JobKeeper, the ATO, cash-flow and the importance of planning. We’ve created a short summary of this webinar but if you’d like to view the full 30 minutes, watch it here.
With JobKeeper ending on March 31, what do businesses and their advisors need to prepare for?
Jobkeeper reliance in decline, as government support starts to wind down. Businesses and advisors need to prepare for a strain on cash flow, and now is the time to have a plan in place to access funds if they are needed. As it can take time to set up a facility or loan, it’s crucial businesses begin this process now.
Do we have any insight on what leniency the ATO might be ending come EOFY?
There’s been signaling in the market that the ATO will start to retrieve some of the millions of dollars owed. It’s important to work out if your or your client’s business is capable of entering in to an arrangement with the ATO if required. Otherwise, the best approach is to ensure you have the cash flow to cover these payments and if not, where you can find it. Traditional bank loans are usually a businesses first option, and if they are not attainable our blog article Non-Bank Lenders: Explained covers off additional funding options.
What are some solutions for businesses who need immediate access to cash or need to cover wages?
Start planning now – if you are cash strapped how can you access funds? What would happen if an amazing business opportunity came along – would you have enough cash or access to funds? A comprehensive list of funding solutions can be found here: Compare Small Business Finance Solutions or our article on How To Improve Your Cash Flow During a Recession guides you through the importance of cash and practical steps you can take.
What’s the current appetite of the lending market?
The major banks are starting to get very competitive, and have their credit appetites in place. There’s been a 29% increase in credit enquiries month on month so we’re starting to return to a level of normality with businesses looking at their forecasts and planning for the future and growth. In the lending and funding market, it ultimately comes down to market share and getting good quality businesses in the door. Read more about different types of lending in our article Types of Business Finance
What actions do business owners or their advisors need to take now?
When looking at a business re-shape plan, the main thing business owners and advisors need to consider is their cash flow. Cash positions need to be optimised wherever they can, like reviewing expenses and negotiating with suppliers. Creating a Cash Flow Forecast is imperative to business success, which will help identify potential strains on cash flow so you can start to prepare. Taking control of your cash flow can be simple using a solution like getting an overdraft from your bank, increasing credit limits on current facilities or exploring an option like Invoice Finance, which gives you access to the money you are already owed by customers rather than waiting for them to pay. These funds can be used to pay the ATO or ensure you’ve got the cash to cover wages, now JobKeeper is ending.
If you would like to speak to a cash flow specialist about your business, or your clients business, get in touch today on 1300 177 485.