A guide to managing your cashflow

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. According to the Australian Bureau of Statistics, failure to manage cash-flow was an identified cause of business insolvencies from 2022-20231.

Here are two considerations 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, butdebtors  affect 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. Despite your best efforts, this may not always achieve your desired results And if you need money right now to pay your staff or to buy new products or equipment, for example, debtor finance may assist.

Stay ahead of the game

We live in a rapidly changing world. Even the most traditional of businesses are seeing enormous changes due to increasing innovation in technology, business management 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 many businesses are scrambling to do one of those two in new and innovative ways.

For long term success, businesses must keep up to date with innovation. The Australian government provides a range of incentives 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 the investment. Sometimes, you might need to spend money to stimulate growth, 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 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.

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Important Information


1 Australian Bureau of Statistics

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

This article has been prepared by IMB Bank and contains general information only. It is not intended to be relied on as advice. It does not take into account your objectives, financial situation or needs. You should seek your own legal, financial, taxation or other professional advice before you make any decisions about your business. Consider the relevant Terms and Conditions or Product Disclosure Statement and Target Market Determination available here before deciding whether to acquire any products or services offered by IMB Bank. Lending criteria, terms and conditions, fees and charges apply to IMB loan products.  

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