Avenue Bank (Avenue) has been granted a full licence to operate as an Authorised Deposit Taking Institution (ADI) by the Australian Prudential Regulation Authority (APRA).

The digital bank will initially focus on alleviating a significant pain point for businesses: the arduous process of securing bank guarantees for landlords.

Current bank guarantee procedures are onerous, predominantly paper-centric, and can take up to two months while Avenue’s digitally enabled guarantee has a turnaround time of as little as one day.

Avenue research shows that 29 percent of businesses have had to defer an office move and a further 46 percent have had their moves disrupted because of the process of obtaining a bank guarantee.

Avenue CEO Peita Piper said the bank had reinvented the bank guarantee, providing fast, fair, and fuss-free service to Australian businesses.

“Australia’s banking landscape has evolved, yet the bank guarantee market remains stagnant, burdened by outdated, paper-based processes. Small businesses are stifled by unnecessary delays, uncertainty, and financial strains,” she said.

“Despite nearly half of business owners believing the bank guarantee process takes too long, there has been little innovation in this roughly $9 billion segment.”

Avenue is the first and only bank to specialise in bank guarantees.

Its digital solutions will ease the management of bank guarantees and the claims process for landlords and enhance security, mitigating the risk of loss, theft, or fraud while tenants will benefit from a fully digital origination process.

“With specialised customer service, we will move as fast as the customer moves,” Ms Piper said.

Tank Stream Labs CEO Bradley Delamare, a customer of Avenue, said the bank’s tech solution was fresh and innovative.

“I went through the traditional bank guarantee process, and it was painful. Not only did I have to obtain multiple signatures for multiple documents, but I also had to hand deliver them to the bank’s head office. In the 21st century, surely there’s a better way,” he said.

“It feels like we’re in really good hands with Avenue Bank.”

Avenue Bank pays a competitive interest rate to customers on their security deposits which are 100 percent government-guaranteed (up to $250,000 per account holder).

For a limited time, it will also waive application fees.

​​“This is only the beginning for Avenue,” Ms Piper said.

“We are committed to delivering further innovation to the bank guarantee market.”

In recent years, there have been minimal disciplinary proceedings brought by the Board of Professional Engineers of Queensland against engineers for alleged unsatisfactory professional conduct. In fact, since 2018 there have only been two published decisions, the latest of which was released in January. While these decisions are publicly available, a summary of the proceedings (without identifying the engineers involved) can also be found on the Board’s website.

The limited number of published decisions does not mean that there have not been other investigations into the conduct of engineers, or that other engineers have not been reprimanded or cautioned by the Board.

It remains important for engineers, especially those in small businesses, to be aware of the types of conduct that could lead to an investigation and potential disciplinary proceedings against them.

Pursuant to section 36(a) of the Professional Engineers Act 2002(Qld) (Act), an engineer having behaved in a way that constitutes unsatisfactory professional conduct is a ground on which they may be disciplined under the Act.

Schedule 2 of the Act defines ‘unsatisfactory professional conduct’ as follows:

“Unsatisfactory professional conduct, for a registered professional engineer, includes the following:

a) Conduct that is of a lesser standard than that which might reasonably be expected of the registered professional engineer by the public or the engineer’s professional peers.

b) Conduct that demonstrates incompetence, or a lack of adequate knowledge, skill, judgment, or care, in the practice of engineering”.

The Board’s recent decision on unsatisfactory professional conduct by an engineer

In the January decision, the engineer faced disciplinary action for not having conducted proper inspections of certified works before issuing the Form 16s, and preparing a design for a retaining wall that was inadequate for its intended purpose.

Specifically, the following behaviour was found to amount to unsatisfactory professional conduct:

• failure to obtain a geotechnical report or seek or obtain copies of proper engineering details, drawings or plans when designing a retaining wall
• assuming the adequacy of bracing to meet the intention required and failing to undertake any invasive investigations to confirm the adequacy of the bracing
• failing to take photos while undertaking inspections
• failing to make a written record of inspections other than the Form 16 that was issued
• failing to consider and/or take measurements and keep records of calculations in relation to upward acting and downward acting loads in their inspections, in which case the Form 16 certifying compliance should not have been issued.

As a result, the engineer was reprimanded, ordered to pay a penalty of $10,000 and $40,000 to cover the Board’s investigation and legal costs. If the engineer was represented by a lawyer, they would be out of pocket well in excess of $50,000. However, the long-term impact of the reprimand may result in larger financial losses and can be especially severe for smaller businesses.

In the matter that preceded that decision in 2018, the following actions by the engineer were found to constitute unsatisfactory professional conduct:

• their conduct in preparing and issuing a design of a slab and footing system:
• that provided no specification to limit soil structure interaction
• without undertaking sufficient or appropriate assessment or verification to determine whether soil scarification was an adequate or appropriate course. They also did not provide adequate specification on how the building contractor should carry out the soil scarification.
• their conduct in issuing a Form 15 and a Form 16 in these circumstances.

The financial penalty and costs in that case were very similar to the more recent decision.

Holding Redlich has a team of legal experts with extensive experience in resolving construction disputes and reviewing contracts for small businesses. If you need assistance, please contact Kirsty Smith at kirsty.smith@holdingredlich.com.

Disclaimer

The information in this article is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, we do not guarantee that the information in this article is accurate at the date it is received or that it will continue to be accurate in the future. 

Contributed by By Holding Redlich Partner Kirsty Smith

The branding associated with a small business is fundamental to establishing commercial goodwill and building reputation. Business names, symbols and logos – referred to in this article as trade marks – play a crucial role in a brand’s identity and allow businesses, big or small, to differentiate their products or services from those of competitors. If used properly, a trade mark can serve as an excellent marketing tool for a small business.

We often see businesses employ a ‘set and forget’ approach by, for instance, registering several key trade marks and then taking no further action. Trade mark management is an ongoing process and it is important that businesses have systems in place to help monitor, revise and renew trade marks as required.

Some of the key trade mark decisions of the Federal Court of Australia in 2023 have shown that failing to stay on top of and conduct regular ‘health checks’ of a business’ trade mark portfolio and brand protection strategy can have significant adverse consequences for small business owners.

To assess and maintain the ‘health’ of your business’ brand and trade marks, consider the following questions:

• who is using the business’ registered trade marks? Are they being used by the registered owner of the trade marks? If not, are there proper arrangements in place to ensure that the registered owner is maintaining control over any third party use of the trade marks? If the trade mark owner does not maintain sufficient control over its use, the trade mark registration may be vulnerable to removal from the Register. We explored this in our article here.
• when was an audit of the business’ unregistered trade marks last conducted? Are all trade marks which are in use currently registered? Have any of the trade marks being used by the business changed in recent years? Are there any gaps in the business’ portfolio of registered trade marks?
• when was an audit of the business’ registered trade marks last conducted? Are the business’ trade marks being used and, if so, are they used properly to perform a branding function? Are the registered trade marks being used in relation to the goods and services in respect of which they are registered? If the answer to any of these questions is ‘no’, the trade marks may be vulnerable to removal from the Register for non-use.
• does the business’ trade mark contain any environmental elements or credentials? If so, are the environmental components of the trade marks in any way misleading or deceptive? See our discussion here.

Holding Redlich’s expert team

Holding Redlich has a team of legal experts with deep expertise in safeguarding small business’ valuable brand identity through comprehensive trade mark solutions.

We also manage worldwide portfolios for many significant brands and we deliver protection in connection with all aspects of trade mark and brand protection services, as set out in further detail below.

If you need any assistance with auditing or reviewing your current trade marks portfolio, please contact Ian Robertson at ian.robertson@holdingredlich.com or Sarah Butler at sarah.butler@holdingredlich.com.

Disclaimer

The information in this article is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, we do not guarantee that the information in this article is accurate at the date it is received or that it will continue to be accurate in the future.

Content provided by Holding Redlich Partner Ian Robertson and Special Counsel Sarah Butler

As the Enterprise XR space and industry competition continue to grow, HTC VIVE is leading the way. At Mobile World Congress 2024, HTC VIVE is announcing new enterprise features for VIVE XR Elite Business Edition, including Location Based Software Suite support, and VIVE Business+ to make fleet management and content deployment effortless at any scale. VIVE XR Elite Business Edition also has new physical accessories to support even more versatile use cases and enhance comfort for longer sessions or multiple users.

VIVE’s hardware and software combination has seen it become the global standard for multi-user Location Based Experiences, including Arcades, Museums, Galleries, and Cultural institutions The breathtaking Horizon of Khufu started with a single venue in Lyon, France, and has seen over 150,000 visitors in just one year, resulting in expansion to nine locations across the globe.

VIVE’s hardware has also become essential in training scenarios across the world. VIVE’s hardware and software mean it’s easy to create simulations with realistic graphics, and the ability for users to move around on a 1:1 scale, even incorporating physical props.

“Every year, the XR industry is delivering more innovation to support humanity,” said Cher Wang, Chairwoman and Co-Founder of HTC. “In 2023 we helped older people to have new experiences while also optimising medical diagnostic tools. We put a VR headset onto the International Space Station for mental and physical health. And VIVE Arts helped to create a beautiful look at Vincent van Gogh’s final works, in a way never seen before. XR is inspiring people around the world, and the possibilities are endless.”

VIVE’s Location Based Software Suite also helped to develop the first functional VR system in microgravity. VIVE’s Simulator Mode was adapted for use on the International Space Station, as Commander Andreas Mogensen used a VIVE Focus 3 flawlessly for mental and physical health support. Mogensen said, “It’s actually one of my favourite activities onboard the space station… it’s a game changer.” VIVE’s LBSS is also an integral part of the upcoming large-scale multiuser exhibition at Museé d’Orsay, “Tonight with the Impressionists – Paris 1874”, celebrating 150 years of Impressionism.

The new VIVE XR Elite Business Edition features include:

• Location Based Software Suite support
• A new face gasket designed for high-user turnover scenarios like LBE
• A new over-the-top headstrap, enhancing comfort and making it even easier and quicker to switch users
• Security clips for the temple arms, to prevent anyone from removing the battery cradle

VIVE is also launching a new 5-in-1 USB-C dock for VIVE Ultimate Tracker, so that five units can be charged at the same time quickly and easily. The VIVE USB-C Dock (Five Ports) is perfect for power users and businesses who have a large number of VIVE Ultimate Trackers in use, for LBEs, group training, motion capture, and more.

VIVERSE Starter Pack

As remote collaboration becomes increasingly important across the world, VIVE is launching a special VIVERSE “Starter Pack” to help organisations build their capabilities. The VIVERSE Starter Pack promotion includes:

• 3 months of VIVERSE for Business
• 10x free VIVE XR Elite Business Edition units, including free VIVE Business Warranty
• Free access to VIVE Business+ for fleet management and content deployment
• Total savings over $12,000
• 20x VIVE XR Elite Business Edition bundle also available, with total savings over $15,000

AI and VIVERSE

VIVERSE is also adding a number of new features, including AI tools, support for VIVE Ultimate Tracker and VIVE Full Face Tracker for VIVE XR Elite, as well as non-VR motion capture for avatars. The new AI technology includes a Personal Assistant to act as a personal tour guide, packed with information about the world the user is exploring.

The AI Personal Assistant will also function as a Voice Assistant for productivity tasks like updating the user’s personal calendar, with more features coming soon. The AI technology also supports Voice-To-Text Transcription, and Real-Time Translation into eight languages*, making it easier than ever for people from different cultures to converse.  

Helping avatars to be more realistic and expressive, VIVERSE is adding support for VIVE Ultimate Tracker for precise body tracking. VIVE Full Face Tracker is capable of eye-tracking and capturing subtle facial expressions – 38 blend shapes across the lips, jaw, cheeks, chin, teeth, and tongue at 60Hz. This means avatars will be more natural and realistic in VIVERSE. Highlighting how easy it is for organisations to add third-party solutions such as AI to their own VIVERSE avatars, HTC’s partner ACCESS will showcase avatars built using the VIVERSE Avatar SDK which incorporate AI for speech and facial expressions.

As the battle for the Wi-Fi 7 market rages on, TP-Link is set to shake up the enterprise space with a Pro upgrade to its Omada routers, switches and access points.

Omada Pro takes the familiar Omada gear and supercharges it for the next generation of networks (and network managers). The biggest upgrade is support for up to 1500 clients, up from non-Pro Omada’s 500. That’s a maximum of course, and in a real-world network environment, you’ll probably see a slightly lower actual maximum, but it’s still a substantial increase in capacity.

Ceiling Mount Omada Wi-Fi 7 Access Point

The boost in maximum connections on Omada Pro networks is supported by a High-Density Connectivity feature set, which includes OFDMA, BSS Colouring, and MU-MIMO. Not a radio geek? Basically, these are are features that improve the stability and capacity of hundreds of simultaneous Wi-Fi connections, to devices like the AP9778 Omada Pro BE19000 Ceiling Mount Wi-Fi 7 Access Point. Which, as the name suggests, can provide up to 19Gbps of Wi-Fi 7 across its 6GHz, 5Ghz, and 2.4GHz bands. 

Ceiling-mount APs are great for a whole range of businesses, industries, even schools, because they’re discreet (they look like chunky smoke detectors) and they use power over Ethernet (PoE) to minimise the need for cabling – and save you precious wall sockets.

Prioritising security

With security top of mind for all network managers, Omada Pro Wi-Fi devices include Wireless Intrusion Detection Systems (WIDS) and Wireless Intrusion Protection Systems (WIPS). Naturally, wired Omada Pro devices, such as Managed Switches and 10G Routers, also have IDS and IPS.

TP-Link assures us that one thing network managers have been asking for in a new range of high-end devices, is security assertion markup language (SAML) support for single sign-on (SSO). This gives managers more flexibility and convenience, without compromising on security.

This reflects Omada Pro’s software defined networking (SDN) approach to enterprise-grade network management. TP-Link’s Cloud Management Platform makes it easy to deploy new networks, monitor existing networks, and of course deal with any issues that may arise.

As well as the afore-mentioned ceiling-mount Wi-Fi access points, the Omada Pro range also includes smart and managed switches, weather-resistant outdoor access points (ideal for places like restaurants, resorts, and sporting grounds), and routers. And, TP-Link says, layer 3 aggregate switches are in the pipeline too.

Employment Hero, the Australian-founded employment management platform, is helping SMEs move closer to ‘one-click’ hiring with new Google Workspace and Microsoft 365 automations*. 

At a time when SMEs face increased pressures to find and retain the best talent, they need to be able to hire and onboard at the click of a button. Employment Hero is enabling businesses to do just that by reducing the double handling during onboarding and offboarding.

Now Employment Hero customers can automatically and securely set up or deactivate employees’ Google Workspace or Microsoft 365 accounts via the Employment Hero platform thus significantly reducing the administrative burden on IT teams. This is especially impactful for SMEs with limited or no IT resources.

Employment Hero is committed to building a best-in-breed tool for SMEs, allowing them to manage their workforce in Australia, New Zealand and beyond. The new Microsoft and Google features also follow a previous integration with Slack, which made it easier for managers to recognise team members while also improving employee engagement. 

Dave Tong, CPTO and co-founder of Employment Hero, comments: “This is the next step towards our goal of helping businesses to hire someone with the single click of a button. In this case we’re easing unnecessary burdens placed on IT departments and tackling the pain of software provisioning and management. Depending on the amount of hires an organisation is making this could save hours of time over the course of week.

“We are all about making life easier for those running and managing SMEs. We’re constantly thinking of ways to save them time, admin and money and our continued investment across R&D allows us to do that – and keep on doing it. These new integrations with Google and Microsoft will make it even easier for Employment Hero users to manage their teams safely and securely, while running and growing their businesses.”

Employment’s Hero’s continued investment in its platform and new automations follows an announcement last week that it now processes more than $100bn in payroll globally and serves approximately 20 per cent of Australia’s private businesses. In addition, Employment Hero’s employer of record service – Global Teams – is now available across 144 countries.

Employment Hero continues to partner with best-in-breed software from around the world via open API integrations to make employment easier and more valuable for everyone. Additional integrations that work with Employment Hero include Sage, Xero, QuickBooks and many others included here. 

Synology has announced the launch of BeeStation, a new addition to its product line designed to bring personal cloud storage to everyone, particularly those who seek simplicity and ease of use. BeeStation will make backing up, managing, and sharing files adaptable to any small business without subscription fees and with maximum control over your private data.

Lewis Sheng, Product Manager at Synology Inc., emphasizes the role of BeeStation within the Synology ecosystem: “For nearly two decades, Synology has been a leader in NAS solutions, offering advanced features for tech enthusiasts and professionals. With BeeStation, we’re addressing a different need. BeeStation packs all the file management and backup essentials into a more accessible and simplified hardware and software experience.”

Get Started in Minutes

Start your personal cloud straight out-of-the-box with a built-in 4 TB hard drive*, ample room for work documents, personal files, photos, and videos. By simply scanning a QR code and connecting the necessary cables, users are minutes away from their personal cloud service.

The accompanying web, desktop and mobile applications offer a seamless experience for managing and accessing files from anywhere, mirroring the convenience of popular cloud services.

Share with workmates

Understanding the need for personal and small business storage solutions, BeeStation allows users to easily create private storage spaces for each employee. This feature ensures that individual privacy is respected and maintained. No complex networking or IT skills needed by anyone.

Backup and AI Capabilities

With BeeStation, automatic backups of photos and videos from iOS and Android devices keeps your most important data protected. Additionally, the AI-powered photo organizer simplifies the task of managing your entire photo library, making it easier than ever to find and share specific images or albums with hardware-accelerated people and object recognition.

BeeStation’s advanced features include the ability to back up files from Google Drive, Microsoft OneDrive, Dropbox, and connected USB drives, ensuring that users always retain a copy of their important data.

Availability

BeeStation is available for purchase starting today on the Synology website and through official partners and resellers worldwide. 

To purchase or learn more, visit https://bee.synology.com/BeeStation

Nearly 70% of businesses fail when they attempt to scale and expand internationally. To help more companies join the 30% that do succeed, Trena Blair – Global Business Expansion Expert and Founder of FD Global Connections – has written her debut book Decoding Global Growth: How successful companies scale internationally.

As a global entrepreneur, Trena Blair has lived and worked in Australia and the USA throughout her 20+ year international corporate executive career, where she has worked with C-suite leaders and organisations including MasterCard, AGB Events and Austrade to deliver highly specialised international expansion and scaleup strategies to access the USA market, and beyond.

Trena has leveraged her expertise to author Decoding Global Growth, whichis a practical guide designed to give any business the tools and confidence needed to launch globally. The bookis the culmination of everything she’s learned, along with real-life case studies from some of the world’s most accomplished business leaders including Emma Lo Russo, Founder and CEO of Digivizer, Skander Malcolm, Chief Executive, Managing Director of OFX Group and Gemma Lloyd, the co-founder and CEO of WORK180. This is supplemented with research and insights from their learnings, whilst also weaving in historical context to support Trena’s proven processes.

The book is structured in four parts – setting the globalisation scene, how to lay the foundations for global growth, the key pillars for global growth, and an analysis of the top five global markets companies expand into. Each section covers content that can be applied to any business, including Trena’s proven scalability formula for success, how to develop the most effective go-to-market strategy, and various sales and distribution strategies, so every reader walks away with a clear path forward.

Trena Blair says, “There are many lessons to be learned when scaling a business globally, and often businesses and their leaders have to learn them the hard way, unfortunately. I was passionate about writing Decoding Global Growth in a way that provides true to life examples of some of the mistakes made, and provide my expert advice on how organisations can avoid similar mishaps on their expansion journey. I also delved into many complex factors that influence the right outcome in the global marketplace, and advice on how business leaders of any organisational size, can apply these practically.

“Essentially I wanted Decoding Global Growth to be a handbook – whether the reader is a start-up entrepreneur or a seasoned CEO  – who wants to ensure their business scales successfully, that they do this in the most efficient way possible to save on time and money, and turn their vision into a reality.”

4 of the most common mistakes business leaders make when attempting to scale internationally, and how to avoid these:

1. Assuming their business success can simply be duplicated in a foreign market

• Companies need to conduct in-depth research on the local practices, values and cultural nuances of the target country, and not assume that everything in their own market will easily translate.

2. Lacking confidence in their team, and not having the capacity to delegate

• It is imperative for leaders to cultivate trust within their teams by mastering the art of delegation.

3. Not fully understanding the business and all of its functions

• Leaders need to be aware and have deep knowledge of all functions of their business, from employees to the product or service they are providing their customers.

4. Trying to scale too soon

• Premature scaling is considered one of the most common signs of imminent doom for a startup. Trena has developed her own ‘Global Scalability Audit’, to help leaders decipher whether they are ready to grow.

Trena adds, “In my 20 years of doing business internationally, the one thing I’ve come to know is that scaling internationally is not for the faint-hearted. Not only does it take grit, determination, and a healthy dose of courage, but an in-depth understanding of the risks and the intricacies of the landscape you’re launching into is imperative. In a race where only the best-prepared survive, getting it wrong could cost you millions, could impact your reputation negatively, and put your core business at serious risk.”

Decoding Global Growth: How successful companies scale internationally is available for purchase both via FD Global Connections’ website and on Amazon. The book is also being adapted to an online e-learning platform, FD Global Academy, where business leaders can go at their own pace, choosing modules based on their specific needs and skill gaps.

Optus has today announced the launch of FutureFit, a series of workshops designed to help small businesses strategically plan digital initiatives, identify and respond to business risks and implement resilience strategies.

The workshops will be conducted across six locations and online (Brisbane, Sydney, Melbourne, Adelaide, Wagga Wagga and Perth) starting from Thursday, 7 March and running through April. More than 700 small businesses will have the opportunity to take part in an interactive workshop where they will leave with a personalised digital strategy for their business.

The program aims to support business owners to enhance their knowledge and skills as they adapt to the demands of an increasingly digital economy focusing on how small business owners can plan for digital transformation, incorporate a whole business digital approach and increase resiliency.

Research shows that digitisation is a key driver of success with small business owners. Employees that possess an advanced level of digital engagement are 50% more likely to experience business growth and businesses with digital skills earn 60% more revenue per employee^[1].

Emma Jensen, VP Small Business at Optus said: “We understand that running a small business comes with many opportunities and challenges that aren’t always easy to navigate alone.”

“Through listening to our customers, we know that digital capability – and keeping up to date as it rapidly changes – is one of the key issues that small businesses face.   We felt there was a real opportunity for Optus to add value by offering a solution to help educate small businesses and reimagine their own digital strategy.“

“The FutureFit workshops we’re launching will enable small businesses to better understand and leverage technology such as AI, social media, digital marketing tools and website development, with the goal of making their business more resilient in a digital age.” 

Optus Business customer and Founder of small business, Only the Sweet Stuff, Debbie Hatumale-Uy, knows the importance of digital communities in today’s small business ecosystem and the importance of being able to continue to upskill.

Hatumale-Uy said: “As a small business owner, you can’t ‘set and forget’ your operations, because something that works today might not work tomorrow.”

“We’re building our businesses in a world where there are a lot of changes that can have a big impact on your day-to-day operations. It’s essential that you’re upskilling so you can harness new opportunities.”

“I know how important it is to spend your time effectively. It can be overwhelming to know where to get your information from, which is why I’m excited to see Optus launch workshops that will give small business owners tools to adapt to an ever-changing digital landscape.”

With the ever-evolving digital landscape, many businesses with fewer than 20 employees are forced to prioritise business critical matters over investing in IT teams or other external services. It becomes vital that small businesses harness technology in order to thrive

Expert business coaches from Dynamic Uplift take a gamified approach that incorporates interactive canvases and cards as well as user-friendly apps to simplify complex processes and meet the needs of small businesses regardless of their digital maturity stage. The workshops will cover a number of topics including:

• Putting digital in context – understanding why it’s critical for every business.
• How to better leverage artificial intelligence and the right apps
• Understanding what ‘digital’ could mean for your business, customers, and partners.
• Evaluating your current digital capability and competitive position.  
• Planning and implementing your digital strategy.

Robert Kinkade, Director, South Pacific Digital at Dynamic Uplift said, “Australia is well progressed on the shift to the digital age, and no business is immune to the impacts of digital disruption, regardless of size.”

“Many small to mid-sized businesses are seeking urgent support without the budget to hire consulting firms or other advisors, and the business owners and operators are time constrained, meaning that they only have days to devote to this critical agenda, not weeks or months.”

The FutureFit workshops will commence on Thursday 7 March in Melbourne. Small Businesses who are interested in attending any of the events in person or online should RSVP, as space is limited.

SMEs urged to negotiate payment discounts

The recent announcement by the Reserve Bank to leave the cash rate target unchanged at 4.35 per cent came as welcome relief for SMEs grappling with inflation and rising living costs.^[i] Any increase in interest rates can quickly reshape the financial landscape for SMEs. 

Moneytech CEO Nick McGrath acknowledges that Australian small business owners have proved to be a very resilient group of people. “SMEs have been really copping it on all fronts but generally holding up well,” said McGrath. “Over the past twelve months, they’ve had to deal with inflation, and supply chain issues, while interest rate increases have impacted their business lending and home loans.”

McGrath identifies cash flow, primarily impacted by debtors stretching payment periods beyond agreed terms, as the big issue for business in 2024. SME business owners and also consumer borrowers are increasingly turning to the non-bank lending industry to make up cash flow short-falls.

“Debtor payment periods are just one of these storms impacting business at the moment, with debtor payment days blowing out at the big and small ends of town,” said McGrath. “30 to 60-day invoice terms are dragging out to anywhere between 90 and 120 days. That’s a lot of time for SMEs to wait to get their money after delivering goods or services.”

To overcome cashflow issues, a finance facility can give tight budgets some much needed breathing room. SMEs using finance to deal with slow invoice payment and high cost of living pressures are advised by McGrath to put their finance to work by getting a better deal, instead of simply using it just for cash.  

Negotiating terms with suppliers is just one of the ways better cash flow from a finance facility can improve the bottom line. According to McGrath, SME business owners should ask suppliers for a payment discount for quicker payment.

“SMEs are paying their own suppliers in 30, 60, or 90 day terms, if you pay cash on delivery or a 14 day term, often a supplier will give business owners a discount of anywhere between three to five per cent of the cost of goods sold. The discount generally far outweighs the cost of finance, so make sure any capital from finance is put to good work.”

To learn more about finance facilities to assist and grow your business, visit www.moneytech.com.au.