Christmas is probably a more problematic time for Aussie businesses than in most other parts of the world. We have long summer holidays where cash flow can be a real issue. Your debtors might have closed up shop or are reluctant to pay up quickly because they too are struggling with a money shortage.
Michael Fingland from business turnaround specialists Vantage Performance says you need to start planning straight away for how you will manage cash over the next three to four months. You might find the banks are less forthcoming than previously when it comes to applying for an overdraft to get you through.
Michael has four ways for you to ensure you’re still solvent and operational early next year:
- Secure some additional working capital
- Look at selling non-core assets
- Communicate expectations to your customers
- Stress test your business
Michael predicts a large increase in the number of insolvencies reported in February 2011 — over and above the usual jump experienced early each year. Plan now to make sure you’re not one of the statistics.
-
Vaccine slow down and inflation signs
US inflation is higher than expected. NAB’s Rodrigo Catril says it remains to be seen whether the Fed is right that its transitory. And a jab slow-down for Europe as the J&J vaccine is put on hold.
-
A vaccine for COVID, lifeboats for Hong Kong
Markets have been pulled two ways. NAB’s Gavin Friend talks through the rising concern over Hong Kong versus news that a vaccine has shown positive signs of working.
-
Softer data, harder RBA
Significant falls in PMIs shows major economies are slowing. NAB’s Rodrigo Catril says markets are taking this as a sign of possible easing in central bank hikes and a fall in inflation, but, he says, as long as supply-side issues remain there’s no guarantee inflation will fall. Meanwhile the RBA predicts faster hikes from the RBA – listen in to find out why.
