At the end of 2021, things were starting to look better. It felt like COVID was receding. Vaccination rates were high and lockdowns were ending.
Experts like Westpac Bill Evans were actually forecasting 6.2% economic growth for 2022.
Then came the Omicron variant – and most of what we were looking forward to got washed away.
We might not be locking down whole Local Government Areas anymore. But we are being required to isolate until we’re tested – and those tests are taking up to a week to get processed.
That means there are still lockdowns – because we’re locking down individuals and their contacts.
More and more people are staying home – either because they’re a contact or because they don’t want to get infected and lose work. This means that:
And as more people stop going out – because they don’t want to be locked down for a week – they build new consumption habits. Unfortunately, those new consumption habits are NOT the sorts of habits that contribute to economic and business growth.
But because “there are no more mandated lockdowns” there is no more direct financial support from governments!!!
Liquidity – the ability to pay short-term obligations.
If you can access funds to pay your bills through the cashflow peaks and troughs of these uncertain times, then your ability to recover is massively increased.
Access to affordable finance can provide that liquidity, through tools such as working capital, debtors finance and trade finance.
While the handouts have mostly stopped, the SME Business Recovery Loan Scheme has been extended through to June 2022. It offers low-interest loans capped at 7.5% to SME businesses with a turnover of $700,000 or more AND it’s government-guaranteed, so it doesn’t require real estate as security.
Unlike a lot of other government funding, the SME Business Recovery Loan Scheme is as easy to apply for as a credit card.
You can use the finance to apply to a full range of business costs:
Having the cost paid from the line of credit give you more cash in the business (liquidity) This can be used to pay rent and meet wage and other business commitments
What it will give you is a shield against the coming cash flow peaks and troughs, with the liquidity to keep operating.
Even if you don’t qualify for the SME Business Recovery Loan Scheme and the big banks aren’t interested in helping you, there could still be products to help you “surf” the current uncertainty.
Our specialty is helping SME businesses find the finance that helps them reach their goals – so if your cashflow is threatening your business future, then give us a call today.
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I recommend this article from The Conversation:
When will this COVID wave be over?
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