By:
Mendy Ash
National senior business development manager Bizcap
Cash flow pressures – that’s the key.
We’re seeing cash flow pressure right across the market, from SMEs to larger businesses. There’s a lot happening locally and globally that’s affecting business owners. But while cash flow is a challenge, a lot of businesses are still positive about what’s ahead and looking at funding now to invest in growth.
So, we’re not only seeing distressed businesses who are looking to borrow today; we’re seeing savvy business owners who are looking at growth over the next 12 months.
I think we’re seeing a lot of legacy issues with business owners being presented with opportunities to grow their businesses, but feeling like getting access to the capital they need is too hard.
For example, a construction business might have the opportunity to take on a new job, but have 24 hours to make a deposit. They’ve got a tight timeframe to make the deposit, so access to capital can determine whether they’re able to take on the job.
Credit can give business owners a lot of flexibility. It’s changing the way they think.
Brokers are a trusted point of contact for a lot of business owners. They need a car, they go to a broker; they need a home loan, they go to a broker.
I’ve been at Bizcap for four years. When I first started, a lot of the brokers we were getting introduced to or speaking with were good at that commercial stuff, be it a property purchase, an asset, or whatnot, but they never had the cash flow question with the client.
Now you’ve got a client in front of you: what percentage of your database is self-employed? How often do you have the cash flow question?
We’re here to support you, so don’t overlook that conversation. It’s an opportunity to understand your client’s business more deeply and potentially identify a funding need you can help them address.
I’ve been at Bizcap for four years. When I first started, a lot of the brokers we were getting introduced to or speaking with were good at that commercial stuff, be it a property purchase, an asset or whatnot, but they never had the cash flow question with the client.
- Mendy Ash
It’s not just funding that next facility and then moving on. I think it’s being constantly in touch and understanding. Like, if it is a commercial property, what fit out do they need for this commercial warehouse that they’ve just purchased? What else does the business need to get up and running?
If it is an asset finance broker, you’ve just done the vehicle. What about the on-road costs?
It’s about understanding what the business is after and what they’re looking to achieve. The brokers building the strongest SME relationships are looking beyond the individual transaction and understanding what the business may need next.
The full story. The best brokers are upfront about all the important context, rather than leaving key details until the end as a “by the way” or an afterthought. We’re an open-minded lender and understand that business owners will have bumps along the road.
What separates a good broker is that context. Tell us what’s going on, what you know, what’s upcoming, why the income is seasonal or why there’s been a dip in business performance.
All that information allows us to make a properly informed decision, and that’s what we’re here to do. Again, we understand businesses are not A plus B equals C, and it’s why a lender like us exists.
We’re an open-minded lender, and we understand that, with business owners, there’s going to be bumps and chinks across the road.
- Mendy Ash
We don’t just have one product, we have a full range of solutions, from fast-term loans, to bridging finance to lines of credit.
Sometimes we help solve an immediate funding need. For other clients, we become an ongoing funding partner as their business and capital requirements evolve.
Support and consistency.
It’s about being able to see the client holistically, really assess what’s going on and what they’re looking for, sometimes telling them that there’s another solution that’s better, and being able to really sort of support them along the way.
Tune in to hear more!
You can listen to the full conversation with Bizcap’s Mendy Ash, national senior business development manager, in the Broker Daily Spotlight podcast, here:
Mendy Ash
National senior business development manager Bizcap
