Cashflow is king – how to handle your SMEs insurance premiums
Cashflow is king, and how you manage your SMEs cash-flow can be a deciding factor in whether or not your business succeeds. Cash flow is the movement of funds in and out of the business. Even the most profitable businesses can struggle if cashflow management isn’t done correctly, it really is the most critical factor for any small or medium sized business.
The Australian Securities and Investment Commission (ASIC) reported that during the 2017/2018 financial, inadequate cashflow was one of the top three reasons for business failure.
However, what happens if you don’t have enough cashflow running through your business? Ultimately it can become detrimental to your businesses success, but it begins with not being able to pay yourself a salary, then you won’t be able to pay staff, you can’t purchase stock, pay rent, rates or utilities and then you can’t pay suppliers and service providers. After this everything comes to a halt and your business activity will cease as you know it.
The issue with cashflow especially when your business is just starting out, is that sometimes the most necessary purchases can put a strain on your cashflow. The most common example of this is with insurance premiums. In order to protect your business from a range of liabilities, you will need a variety of different types of insurance. However, these business insurance premiums are often expensive, and complicated. They often represent a significant one-off annual cost that can put some serious pressure on your cashflow as a result.
However, you aren’t alone in this struggle, many SMEs often face similar problems with business insurance premiums. So there has to be a better way to deal with cash flow pressure as a result of insurance premiums, and there is.
Insurance premium finance enables your SME to avoid lump sum payments by turning them into monthly payments. This also enables you to roll all of your premium together into one simple monthly payment, rather than complicated multiple party payments throughout the year.
An insurance premium finance option will free up money in your business for other expenses or investment. The only aspect to consider when thinking about insurance premium finance is finding a trustworthy lender to provide you with finance.
If your small or medium sized business is looking for insurance premium finance options, you will most likely find it difficult to secure finance with a regular bank lender. This is where non-bank lenders such as Grow Finance are your best option. Grow Finance specifically creates finance options for SMEs, to bridge the gap for small or medium sized businesses that can’t secure regular bank finance.
Grow Finance’s insurance premium finance gives you access to fixed, competitive interest rates, along with a solution to your insurance premium cashflow strain. With Grow Finance the application process is easy and simple and you can easily get approval or finance on the same day. Now you can avoid the yearly stress of paying your SMEs insurance premiums, and instead pay throughout the year with easy monthly payments; the best way to handle your businesses insurance premiums.
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