The Quiet Exodus: Are Aussie Businesses Abandoning Banks.. AND Raygun?

Hey there business owners,

There's no doubt you've been hearing the buzz... and no, I’m not talking about Raygun’s Olympic breakdancing drama—seems like the only thing spinning faster than her floor moves is Australia’s economy…

As we dodge and weave through economic changes, creeping costs, and a mega-push towards digital transformations, here's the pressing question:

How’s all this footwork going to impact your SME journey, especially when securing the crucial funds needed for growth?

⤵️ In this edition, we embark on a deep dive to understand these pivotal headlines and explore practical strategies to shield your business from potential pitfalls and keep prospering.

📰 The Financial Pulse: What’s Happening Now

📊Inflation Tactics: Navigating the Pressure

1. Inflation's been a persistent bugbear, squeezing every bit of margin. Yet, it also invites a chance to rethink financing—pushing businesses to get creative or raise prices (like everyone else!).
   
   What This Means For Your SME: You might feel the pinch in your operational budgets as day-to-day expenses rise, making financial flexibility more critical than ever.

🤔 Why Everyone’s Rethinking Spending

2. With consumers prioritising essential spending, non-essential purchases have taken a hit.
   
   What This Means For Your SME: You’re definitely seeing it firsthand; folks are getting picky and tight. Aligning product offerings to meet these essential needs will position your business as a must-have, rather than a nice-to-have.

😣 Interest Rates: The Wallet Squeeze

3. Interest rates are no joke right now. Borrowing is costlier, which can give you a bit of a financial headache.
   
   What This Means For Your SME: It's all about managing that cash flow, isn't it? Might be worth keeping an eye out for ways to juggle things around without breaking the bank.

⚡Digital Government Initiatives: Don’t Be A Dinosaur

4. With the government’s fresh $23 million investment into digital adoption and cybersecurity, there’s an unprecedented push for SMEs to integrate tech advancements.
   
   What This Means For Your SME: Embracing digital tools allows you to streamline operations, enhance customer engagement, and potentially unlock new markets, positioning your business in front of a digital landscape.

🛠️ Government Policy for SMEs & The Fed Budget

5. Good news—there's some government help out there. Think rebates and write-offs.
   
   What This Means For Your SME: They're giving you a bit of a lifeline, a little cushion to invest back into the business or lighten the load. You have avenues to alleviate some of the financial burdens.

🗣️ The Bottom Line

The ability to pivot quickly is a newfound superpower in today’s economic environment for small to medium businesses. Embracing change and staying liquid with funding not only ensures survival but also opens up opportunities to thrive where others might falter.

With over 36% more businesses entering insolvency since last year, staying nimble is more than just beneficial—it's essential for keeping your doors open and thriving amidst the financial turbulence.

👌 How To Set Yourself Up for Funding Success

These are the two pivotal pieces of qualifying criteria you are likely to find:

1. 🫰 Can You Service The Finance?
   Make sure your business meets essential financial thresholds. For most industries, a minimum monthly revenue of $15k. 
   

2. 📜 How Long Have You Been Running?
   Thankfully, you’ll just need an active ABN and 6 months of trading history. For industries like construction and transport, 1 year is often required.

We’re proud to partner with an agile lender who keep it straightforward and flexible, so you’re equipped to handle whatever the economy throws your way. Need quick cash flow support or capital for a new venture? Non banks are a great option and our partner lender Bizcap is here for you as a top AU non-bank lender.

⏩️ Quick Bites