Every economy could do with increased cash flow and more money. But from history, pumping in more money into the system without proper redistribution or circulation just results in inflation. Strengthening cash flow on the other hand, is bound to help an economy grow and thrive profitably. Unfortunately, the last recession impacted many businesses negatively and by extension, the economy. Some filed for bankruptcy, others went under.
But in spite of everything, some businesses still thrived albeit due to many reasons. While they may all have had different corporate cultures, mission statements and financial statements, the one thing most businesses that survived had in common was the fact that they all had fantastic cash flow access, processes and management. And as you already know, better business means a better economy for everyone. So, in order to strengthen cash flow in the Australian economy, the following is necessary.
Encourage Business Growth
The Australian government and financial sector can help small businesses thrive and grow by enabling certain incentives. For example, businesses should be able to get access to loans with reasonable interest rates. If banks are more inclined towards giving loans and the lending rates are acceptable, more businesses will thrive; same goes for the economy.
Enable Tax Refunds and Lower Taxes
Sure, there are certain tax refund policies available. But, if the tax refund policies were made to help favour small and medium scale businesses, there will be greater benefits for the businesses. Lowering taxes might also help. Businesses all over the world are hurting because of the huge taxes they have to pay every year. Lowering taxes makes room for liquid capital and increased capital outlay.
Try Trade Credit Insurance
Most businesses are typically owed by their clients and customers. In fact, nearly 40% of all revenue or payment is held by the customer or client. Basically, at every point in time, all businesses are running with no more than 65% of their revenue. The thing with these debts is that they can easily go from being debts to bad debts. Sometimes, this happens as a result of the customer or client becoming insolvent or filing for bankruptcy.
In other cases, it may just be a case of a bad debtor who has the money but isn't willing to pay their debt. Either way, securing trade credit insurance will help ensure that you do not lose those outstanding debts. And it can also be used to get short, medium or long term loans to cover business expenses, keep the business running until the receivables come in or until the client pays up.
But in spite of everything, some businesses still thrived albeit due to many reasons. While they may all have had different corporate cultures, mission statements and financial statements, the one thing most businesses that survived had in common was the fact that they all had fantastic cash flow access, processes and management. And as you already know, better business means a better economy for everyone. So, in order to strengthen cash flow in the Australian economy, the following is necessary.
Encourage Business Growth
The Australian government and financial sector can help small businesses thrive and grow by enabling certain incentives. For example, businesses should be able to get access to loans with reasonable interest rates. If banks are more inclined towards giving loans and the lending rates are acceptable, more businesses will thrive; same goes for the economy.
Enable Tax Refunds and Lower Taxes
Sure, there are certain tax refund policies available. But, if the tax refund policies were made to help favour small and medium scale businesses, there will be greater benefits for the businesses. Lowering taxes might also help. Businesses all over the world are hurting because of the huge taxes they have to pay every year. Lowering taxes makes room for liquid capital and increased capital outlay.
Try Trade Credit Insurance
Most businesses are typically owed by their clients and customers. In fact, nearly 40% of all revenue or payment is held by the customer or client. Basically, at every point in time, all businesses are running with no more than 65% of their revenue. The thing with these debts is that they can easily go from being debts to bad debts. Sometimes, this happens as a result of the customer or client becoming insolvent or filing for bankruptcy.
In other cases, it may just be a case of a bad debtor who has the money but isn't willing to pay their debt. Either way, securing trade credit insurance will help ensure that you do not lose those outstanding debts. And it can also be used to get short, medium or long term loans to cover business expenses, keep the business running until the receivables come in or until the client pays up.
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