What you need to know about credit

Advice | Cashflow | Featured | Small Business

By Dynamic Business

It’s no secret that inadequate cash flow is one of the main reasons why businesses fail in Australia.

Dynamic Business only recently talked about this issue last week, with new research commissioned by H&R Block found that the biggest struggles for small businesses across Australia are:

  • ‘cashflow’ (35%)
  • ‘marketing effectiveness’ (30%)
  • ‘lack of support’ (19%)
  • ‘hiring the right people’ (18%)

This sees cashflow as the biggest reported problem for business owners trying to survive.

If you’re reading this as a small-to-medium business owner, you probably know what it’s like to balance many different job roles. Many SME leaders are juggling the demands of being CEO, Head of Marketing, Manager of Sales, Chief Accountant and many more positions… all at the same time!

While this can be exciting and fast paced, not to mention probably necessary in the early days, it means that no two days for an SME are alike – making it increasingly difficult to forecast and consider future risks ahead.

Credit management is an area easily overlooked due to its complex nature.

Matters such as implementing your debt recovery routines, understanding policies and getting your head around countless credit acronyms (What does PPSR even stand for?), can be overwhelming and hard to navigate through.

You’re a business that wants to get paid and needs to get paid at the end of the day.

However, if you’re already time and money poor, it’s very easy for late payments to really hurt a small business and compromise cashflow. It is essential to have strong credit management in place to perform risk assessments and avoid this.

CreditorWatch has been designed as a subscription-based service to allow businesses to check credit risks, monitor customers and act as an automated accounts receivable team (The A-Team).

Here are some key resources created by CreditorWatch and shared exclusively for Dynamic Business readers. Avoid cashflow problems by reading up on credit and how best to manage credit going forward.

If you need more help with credit management, you can sign up for a free CreditorWatch trial here.

Related Articles
Artificial Intelligence sign: AI increases in businesses after COVID-19 Featured | Tech
Artificial Intelligence: Is the pandemic a turning point?

The disruption caused by COVID-19 may be a technology turning point for many businesses and specifically an acceleration in the adoption of Artificial Intelligence (AI). Business owners and leaders are seeking fast, accurate insights and analytics to help them make better decisions in the rapidly evolving business landscape. Leaders have been forecasting scenarios such as: Read More…

We don't want a casual relationship

Our mission is to give you all the information you need to grow your business.

The only way we can reliably do that is via email.

Signup for daily updates about Australian Business and special offers.

You have Successfully Subscribed!