A non-bank lender has called brokers to action as ‘D-day’ approaches for the many Australian SMEs who have yet to crunch the numbers on the total costs deferred over the last six months.
According to Scottish Pacific general manager for Victoria, Jane Starkins, brokers have the power to save “many businesses” as long as they act soon, with September now just one week away.
“Brokers can play a pivotal role in encouraging their SME clients to work out their obligations now and take steps early if they don’t think they’ll be able to pay everything that has accrued. The wave of debt coming at some businesses will be too great if they do not start planning for it now,” Starkins said.
“We are having regular conversations with brokers and accountants who realise their clients need funding in place to pay expenses they have been deferring, including rent, asset finance, PAYG, superannuation and payroll tax.
“These trusted advisers have a real role in helping their clients see into the future more clearly and then working with them to ensure they know exactly what they’ll need to pay over the next four months.”
With many business owners reluctant to borrow more and nearly all too busy navigating their enterprise through COVID-19 to conduct their own research, they likely need aid in understanding the funding options available to them.
“Now is an ideal time for business owners to find new funding paths that harness the value of assets already in their business, such as their sales invoices or plant and equipment. More than ever before, busines owners have to think on their feet and act quickly,” Starkins explained.
“It’s vital for SMEs to quickly work out the cost base of ‘operating in this new normal’, because if their cost base is too high they need to act now to reduce costs and find ways to pay their debts.
“Advisers can help business owners bite off this task in small chunks so it’s not one overwhelming debt. They don’t need complicated analysis models, it’s about sitting down and helping them work out what they’ve deferred that they’ll need to catch up on.”