iscover
iscover 
Prospa’s SME Sentiment Report, in partnership with YouGov, highlighted just how dire cash flow issues are for Aussie businesses.
Two-thirds (66 per cent) of SME respondents said they’ve experienced cash flow stress in the past year.
Another 13 per cent said they have no cash reserves at all.
To address these issues, 30 per cent said they’re seeking external funding in the coming year. The average loan size was $24,701.
This is a golden opportunity for commercial finance brokers to help pull businesses through tough periods of financial strain by helping them access funding.
Beyond hurting the viability of businesses, this financial strain is having a personal impact on business owners.
Over three-quarters (77 per cent) of respondents said rising costs and a tough economy have impacted them personally.
This has resulted in 43 per cent suffering from stress and burnout, while a further 39 per cent reported it impacting sleep.
There are a variety of methods respondents are utilising to combat the strain. Eighty-three per cent are implementing some changes, with 46 per cent cutting non-essential expenses and 37 per cent raising prices.
While proactive steps are being taken to reduce costs, many are overlooking the benefits of technology.
Just 21 per cent of respondents said they are planning to invest in technology, despite 60 per cent recognising AI as being crucial to their business.
The top uses for AI were reducing admin time (33 per cent) and planning for growth (23 per cent).
“Technology is no longer a luxury – it’s a necessity. AI is helping small businesses do more with less, freeing up time and resources to focus on growth. But adoption, particularly if you are competing with larger or global businesses, needs to be higher,” said Prospa’s co-founder and chief revenue officer, Beau Bertoli.
However, Bertoli also recognised the resilience of Australian businesses as they adapt to a tight market.
“Small businesses are showing incredible resilience and adaptability. It’s been a tough time for many, marked by sleepless nights and dipping into personal savings – but I’m continually impressed by how business owners are embracing technology and finding smarter ways to operate,” Bertoli said.
With a quarter of respondents viewing the present business landscape as poor, and a large portion looking to invest, SME brokers can help assist business owners through the tough period and prepare for the coming financial year.
[Related: Small business loans surge following RBA cuts]
