Even a profitable business can fail because of poor cash flow, which almost all businesses experience from time to time. To address, try this simple 3-step approach:
Step 1 - Cash flow planning and projection
Step 2 - Getting paid sooner
Invoice promptly, and actively manage your debtors as soon as payment is due. To get more cash coming into the business you can also consider:
- Reducing your terms of trade so you're paid sooner (e.g. offer a discount for fast payment).
- Increasing your net profit, by either increasing your sales price or reducing your costs of sale or operating expenses.
Step 3 - Keeping the business running
There's a range of finance options to help you when cash flow is tight. You can use business credit cards to cover short-term cash shortfalls. Try our BusinessVantage Visa® Credit Card.
- An overdraft, which can be secured or unsecured.
- A line of credit (e.g. using the equity in your home or business).
- Keeping an emergency cash reserve in a high interest, at call account.
How can we help?
St.George can help your business with cash flow in a number of ways, including:
Conditions and fees apply. This information doesn’t take your circumstances into account. Read the terms before making a decision. All applications are subject to St.George’s normal lending credit approval criteria.
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