Cash Flow Solutions: Working Capital to Funding Growth

Unsurprisingly, one of the most frequently cited causes of stress in a business are issues relating to inadequate cash flow and high cash usage. SV Partners most recent Commercial Risk Outlook Report (March 17) found that cash flow issues and poor financial control accounted for around one third of business failures in the 2016 financial year. Even in good businesses that are trading profitably, cash flow shortfalls due to seasonality in trading, repayment of debt and equipment lease schedules (including plans for ATO arrears), expected and unexpected repairs, maintenance and capital expenditure (new, upgraded or replacement equipment requirements) or investment in growth opportunities (such as additional resources, equipment, premises and marketing campaigns) are extremely common. If you find yourself facing one or more of these situations the good news is there are a number of ‘tools’ and ‘actions’ that you can bring into play to optimize your available access to cash through what we have termed the ‘Cash Flow Wheel of Fortune’ (Figure 1).

Cash Flow: ‘Wheel of Fortune’


Figure 1. The six tools and actions that a business can put into play to optimize access to cash.



If you require any further information about any of the solutions outlined above please contact us and we will be happy to help connect you with an appropriate provider in your area or discuss in more detail short and long term solutions that may be available to your business to fund daily trading and future growth.

Article written by Sheree Cross

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