Ezypay is encouraging and in many cases challenging our small business clients to focus on improving their cash flow statements, namely; reducing debt and the cost of financing that debt, improving repayment terms by restructuring accounts receivable payments with debtors and targeting break-even or positive cash flow.
Having your small business spend more money and take on more debt right now, even with the one-time tax break, shouldn’t be the highest priority. It’s more than likely that the businesses who will take advantage of this tax break are those that already planned to spend money on capital works.
Cash strapped small businesses that are unable to secure additional finance, which accounts for the majority of the 1.9 million strong sector, are highly unlikely to undertake unplanned spending.
Read the full article written by Trent Brown, Ezypay CEO, to manage your cash flow and survive the downturn.
Trent Brown advises to small businesses that “before you spend more money on your business – stop and focus on using the recently announced tax break.”
In the article, reducing operational debt, restructuring repayment terms, and targeting breakeven or positive cashflow was discussed to provide information to manage your cash flow and survive the downturn.