In volatile economic climates such as the environment at current confronting many transport companies, it's essential that businesses maintain continuity while unlocking opportunities when they present themselves according to Pfitz Financial & Business Solutions Director Sonja Pfitz.
The 2020 global coronavirus crisis has seen many lenders change the way they funded essential services and for companies that have been adversely affected it has meant introducting new measures to ease pressures around cash flow.
For many it may have resulted in getting additional funding for and negotiating the purchase of new equipment to improve productivity or to take advantage of the $150K instant tax write off.
Getting good financial advice and assistance, according to Pfitz, is itself essential in such circumstances.
"Whatever the case, it’s important to match the intricacies of your business to the appropriate financial solution and have a strategy for the way the money is used, because such decisions can make a huge difference to the success or failure of what happens next," she said.
"Cash is King. This couldn’t be truer than the environment many businesses find themselves in today, and will be even more relevant as we come out of COVID19 crisis," said Pfitz.
"Having the right financial solution for your business to support current cashflow and new opportunities requires time, expertise and the ability to keep abreast of each lender’s offering and how each will fit within the specific needs of the business."
But for those operating their own businesses who are already time poor finding the right solution can be difficult.
It takes time to secure new funding and often requires the provision of additional security.
During the COVID-19 pandemic, commercial road transport businesses in a position to do so will want to reduce their reliance on shareholders or directors for loans.
Pfitz acknowledges that sourcing cashflow finance to free up working capital is a balancing act in which businesses need a blend of working capital solutions to quash a debt, and this often involves diversifying the lenders that support the business.
A broad range of working capital solutions can be implemented into a business that don’t require personal assets as security according to Pfitz who said a company such as PFBS had proven industry experience to help transport companies better navigate the complexities involved.
"We have connections to both the Big Four banks and alternative lenders, and can negotiate and obtain working capital finance, trade finance, and asset finance – both short and long term facilities," she said.
"Whatever the issues, we always find considered solutions, or sometimes, a series of solutions to help you attain your goals.
In solving cashflow dilemmas having a powerful advocate, no matter the size of the business, was part of the service PFBS provided its customers as it helped delve deeper into the financial issues at hand with a right working capital strategy.
"Behind each loan or finance facility proposal is a carefully-considered strategy specific to your business," said Pfitz who acknowledged that bringing a businesses' finances back on track as a transformative process through implementing the right working capital solutions.
"Efficiency leads to effectiveness, thereby improving buying opportunities, securing new clients, improving profits and meeting objectives while keeping the directors’ assets separated from the business," she said.