As the pressures associated with the pandemic begin to ebb, we are seeing business confidence rise. However, the current economic cycle of increasing interest rates and rising inflation is adding new challenges for many businesses.
As inflation grows, the value of money essentially decreases and costs rise sharply. This has been further exacerbated by rising fuel costs, global supply chain disruptions, geopolitical tensions and recent natural disasters, here and abroad.
A perfect storm for business
For businesses, this is creating a perfect storm. The cost of goods is increasing, shipping is more expensive, and orders are likely to take longer. These pressures are likely to continue growing and many businesses may not have felt the full impact as yet.
It’s probable that most, if not all, businesses will feel some cash flow pressures as outgoings increase. In addition, incomings are likely to be impacted with supply chain and delivery delays holding up realisation of revenue and domino effects increasing late payment.
At present, some sectors are more heavily impacted, such as construction. Building materials are becoming harder to obtain and costs are increasing sharply. Many are getting caught out with fixed price quoting that is now making it hard to deliver in a financially viable way.
Some light at the end of the tunnel
Many experts are predicting that some of these pressures, particularly those related to supply chain, will be alleviated towards the end of the year, as supply catches up to demand. While this is good news, it still leaves a significant short term challenge for business owners – how do you maintain a healthy cash flow in the interim?
That’s where Selectpay’s cash flow management solutions can assist. Our simple business to business buy now, pay later solutions see you paid upfront while your client manages their cash flow by paying in instalments. You can also use it to cover your own business expenses, selecting the goods or services you need today and paying over time.
We also offer selective invoice financing options that allow you to turn invoicing day into payday so you don’t have to sweat on payment to cover expenses.
In addition, our team of cash flow experts can work with you to create a customised solution for your business. And with simple sign up, you can start using Selectpay straightaway. Visit selectpay.com.au to get started.