Small business often has an issue in trying to raise capital to finance expansion for equipment or simply to provide cash flow in the development stages.
With the advent of Covid-19, most small businesses in Cairns have suffered dramatically and will require working capital. The problem is that the figures will not be as good as they were previously. The banks are tolerating such drops in revenue if previous financials are good.
These are the requirements generally required for a small business to obtain finance.
The banks will require small business to provide bank statements covering at least 90 days along with the business activity statements to confirm trading turnover is similar to that last financial year. This also applies to those businesses that did not claim Jobkeeper and also those who had loan repayments deferred.
The problem most likely encountered is that this year’s trading figures will most likely be significantly lower than the previous year’s figures. Banks are working with business because they understand that the economy has taken a battering. The previous figures for a number of years will be taken into consideration as your small business recuperates.
Do not despair. This can be worked through. What it does mean though is that in the future you will need to work smarter and most likely harder along with working longer hours to recuperate.
You must be more conscious of your cash flow and overheads. This is a very good way to start your small business, particularly if you own a Cairns tourism business. Monitoring your daily sales and overheads is now a “mandatory” requirement. Saying you do not understand the financials is a recipe for disaster. You must learn. You must progress and you must think of ways to modernize and be more competitive.
