Despite all the doom and gloom predictions, COVID was really not that bad for many Australian small businesses. Whilst some industries like travel, entertainment and hospitality were decimated, on the whole, Australian SMEs rode the COVID wave and came out the other side. Employees quickly adapted to work from home and propped up by Job Keeper, government grants and with tax collections put on hold the extra stimulus packages propped up zombie businesses that would have otherwise closed. But the tide is now turning.
Inflation is rising, staff costs are higher with an increase to the minimum wage and a severe skill shortage, the SME Recovery Loan scheme has ended and the ATO is back collecting tax liability including the debt accrued over the last two years. COVID is rearing its head again and business insolvencies are starting to rise.
The tide is turning.
The Government has spent so much money keeping business afloat during COVID that it’s now come to a screaming halt as we enter a recession. With national debt sitting at more than $800 billion they have no more money left to throw. There’s nothing left in the piggy bank.
In the past six months, here at OptiPay, we’ve noticed it’s taking businesses longer to pay their bills – the average days outstanding has increased by a week. It’s one of the first signs that businesses are under mounting financial strain – to maintain cashflow they’re having to be selective about the timing of when they pay debts.
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Who is OptiPay?
OptiPay, one of Australia’s leading business finance providers, has been dedicated to helping small business owners solve cash flow challenges for over a decade and has provided $1.5 billion in business funding to more than 500 Australian businesses. OptiPay specialises in modern financing solutions such as invoice factoring, invoice finance, debtor finance, and lines of credit. OptiPay’s mission is to support business growth providing liquidity in as little as 24 hours, ensuring they have access to tomorrow’s cash flow today. This rapid access to funds helps businesses maintain smooth operations and seize growth opportunities without the stress of cash flow constraints. At OptiPay, we believe that healthy cash flow is the lifeblood of any successful business. Our commitment to helping businesses overcome financial hurdles and achieve their growth ambitions has solidified our reputation as a trusted partner in the business finance sector. Whether you are looking to stabilise your cash flow, expand your operations, or navigate financial challenges, OptiPay is here to support your journey with innovative and efficient financing solutions.
