As we near the end of financial year we have compiled a number of relevant articles to help you navigate this busy period. This is a great time to reflect on your business and see how far you have come over the last 12 months and set your goals moving forward.
We want to assure you that our team are here to help. We look forward to being of assistance for your business needs.
Please stay safe and enjoy the read.
Why reviewing your finances is important?
Key factors in running a successful business involve creating budgets, preparing business plans and continually reviewing your financial situation and business performance. If you want to use your budgets effectively they must be examined and altered on a regular basis, especially if your business is growing or wanting to expand into new sectors.
Many business owners only analyse their accounts once a year, at tax time, but they should do it on a monthly basis. Here are some reasons:
Did you know cash flow worries are regularly reported as the leading stress point of Australian small to medium-sized businesses? Issues like late payers, seasonal downturns, government red tape and lost productivity due to unexpected circumstances (think a global pandemic!) can make managing your cash feel more like frustration than flow.
Fortunately, you don’t have to live with a constant battle between outgoings and incomings. Several finance solutions can keep your balance sheet well-poised for meeting your financial commitments, as well as business growth.
Here are some working capital and funding options that could help your business.
Debtor Days: What are they and why are they important?
If you’re a business owner, nobody has to tell you about the importance of cash flow. But many business owners overlook debtor days until working capital becomes stretched due to a late payment or unexpected cost.
Limiting the number of debtor days is vital for maintaining a healthy cash flow. It shows you how long you need to wait for the money owed that your business is counting on for its operations.
In this guide, we’ll outline what debtor days are and why they’re important. We’ll also reveal how to calculate debtor days and the steps you can take to get your customers to pay on time.
According to the Government’s Payment Times Reports Register, the average payment term for small businesses is 37.27 days. With an invoice finance facility, you can access up to 95% of the invoice value within 24 hours of raising the invoice.
Some invoice finance facilities also come with account management services that can save you time and money by allowing you to focus on growth – not chasing customer payments and paperwork.
As a valued client, we want to inform you that this run-up to the end of the financial year is different from others, with lender turnaround times becoming increasingly unpredictable. As a result, if you wait until the last minute, obtaining new or additional equipment before June 30 may be difficult.
What We Can Finance
🚚 Transport Equipment
🚜 Agricultural Equipment
🚧 Construction Equipment
🚗 Motor Vehicles
✈️ Aircraft
🛠️ Sheds
Basically, if you need it for use in your business, I can finance it.
Don't forget, we can finance:
👍 New or Used
👍 Dealer or Private Sale
👍 Low Doc Loans Available
We want to assure you that our team are here to help. We look forward to being of assistance for your business needs.
Information contained in this document is of a general nature only. It does not constitute financial advice. The information does not take into account your objectives, needs and circumstances. We recommend that you obtain advice specific to your objectives, financial situation and particular needs before making any decision or acting on any of the information contained in this document. Subject to law, PMG Finance nor their directors, employees or authorised representatives, do not give any representation or warranty as to the reliability for any person acting, or refraining from acting, on the basis of the information contained in this document.
Peter May Group Pty Ltd | ABN 48 147 057 538 | Australian Credit Licence No. 391868