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A guide to managing your cash-flow

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Cash flow can be a constant concern for any business manager. Whether you own a grocery store or are a self-employed tradesperson, cash flow might dictate your success and failure. Often, failure to manage cash-flow properly was an identified cause of business insolvencies from 2014 to 20151.

As we start to near the new financial year, it could be the perfect time to learn how to better handle cash flow and help prevent your small business going the way of the dodo.

Keep on top of your debtors

In the business world, payments can be a little more flexible than they are in day-to-day purchases. When you provide a service, you can end up with a backlog of unpaid invoices. It might be the case that you're pretty certain that you're going to get the money eventually, but your debtors are being a little lax and it's affecting your cash flow.

To get that money rolling in again, you have several options and one of those is to chase them up yourself or hire a company to do so, but this may not always achieve your desired results. You might need money right now to pay your staff or to buy new products or equipment, for example. That's where debtor finance may be able to help you- providing you with capital right now to help keep your business afloat. It might only be a temporary lubricant for your cash flow, but it could be the lifeline you need when your business finds itself in a sticky situation where debtors are just being tardy in their payments.

Stay ahead of the game

We live in a rapidly changing world. Even the most traditional of businesses are seeing enormous levels of innovation in technology, management methods and equipment. If you want to keep ahead of your competition, you either need to do something better than everybody else or provide something that nobody else can. And most people are scrambling to do one of those two in new and innovative ways.

One factor in maintaining positive cash flow is trying to keep up to date with waves of innovation. The Australian government provides a number of different support structures for small businesses interested in research and development2, but these might only go so far, especially if you do not have the ability to finance these assets. Sometimes, you might need to spend money to stimulate cash flow, and if you want the latest equipment to access new customers and expand your business, it can pay (literally) to investigate your options in asset finance.

Here at IMB, we want to see your business grow. Whether you're after business financing, overdraft options or just a payroll facility, we're the ones who can help you get started. Come and have a chat with the team and find out how we can help you take your small business to the next level.


Enquire about IMB Bank Small Business services


1 Australian Securities & Investments Commission

2 Department of Industry Innovation, Science, Research and Tertiary Education

Why choose IMB Bank?

Established in 1880, IMB has been helping people achieve their financial goals for 139 years. IMB offers a full range of banking solutions including home and personal lending, savings and transaction accounts, term deposits, business banking, financial planning and can arrange a wide range of insurance and travel products.

IMB has a growing branch network throughout the Illawarra, Sydney, NSW South Coast, the ACT and Melbourne. We have a lending specialist in every branch and a team of mobile lending specialists who will come to you. IMB members enjoy access to free automated phone and internet banking and a team of professionals who are just a phone call away at our locally based call centre.

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