Research by OnDeck Australia said cash flow can be the make-or-break factor that allows small businesses to celebrate the lifting of lockdowns.
It found that only two out of five (40 per cent) small businesses have the cash flow to handle lockdowns lifting – dropping to 21 per cent of businesses with 26-50 staff and 10 per cent of small businesses nationally said lockdowns have depleted their cash reserves, rising to 14 per cent of Victorian small businesses.
In addition to cash flow, stock is also an issue with only one in two (51 per cent) small businesses in NSW saying they have the trading stock necessary for the post-lockdown period, falling to 41 per cent of Victorian small businesses.
“Lockdowns have clearly taken a toll on the small business communities of NSW and Victoria. Cash reserves have been squeezed, yet maximising the opportunities offered by the end of lockdowns can involve spending money to make money. It’s a conundrum that could inhibit the ability of many small businesses to bounce back from lockdowns,” Nick Reily, national partnerships manager at OnDeck Australia, said.
“A cashflow squeeze doesn’t just impact a business’s supply of trading stock. Our research also revealed that one in four small businesses need to hire more staff post-lockdown, and less than half (44 per cent) have the necessary marketing in place to promote their business post-lockdowns.
“As we speed towards the festive season, small businesses need accelerated access to cashflow funding if they are to use the peak trading period to make up for lost revenue.”
