As Australian companies transfer into the Christmas shutdown interval – when cashflow tightens and buying and selling slows throughout most industries – Moneytech, one among Australia’s main non-bank lenders to SMEs, says too many enterprise homeowners are nonetheless approaching finance reactively, leaving themselves uncovered on the very time their operations face the best pressure.
Reece Ketu, Group Head of Gross sales & Distribution at Moneytech, mentioned the December–January interval stays essentially the most difficult window for companies managing provider prices, payroll, slower receivables and vacation closures. But many nonetheless search finance solely as soon as they’re already below stress. “We see companies wait till they’re in a cashflow crunch earlier than asking for assist. By that time, their choices shrink and the price of funding inevitably will increase. The SMEs that enter the brand new yr strongest are those pondering twelve to twenty-four months forward, not simply plugging gaps as they seem,” Ketu mentioned.
Andrew Beckett, Head of Dealer and Third-Get together Distribution at Lend, mentioned the most typical concern they encounter in December is SMEs making use of for funding when their monetary profile not helps the scale of the power they want. He mentioned many enterprise homeowners are addressing a right away money scarcity with out contemplating how the subsequent yr of buying and selling will unfold. “Lots of purchasers are available in wanting a fast capital injection, however their financial institution statements present months of diminishing balances. When you wait till you want cash yesterday, the servicing place merely isn’t there anymore,” Beckett mentioned.
Beckett notes this turns into significantly problematic when SMEs deal with finance as a short-term repair moderately than a strategic software. “Many are attempting to resolve at this time’s downside with out addressing the underlying concern. They’re placing a Band-Support on one thing that actually wants a long-term plan,” he mentioned.
Beckett added that operators within the strongest place heading into 2026 are these reviewing their services early, growing limits earlier than peak buying and selling hits, and guaranteeing their constructions can scale with progress. “The nice operators don’t hit December in panic mode. They’re forecasting prices, anticipating delays, and dealing with brokers to strengthen their place lengthy earlier than the stress arrives,” he mentioned.
The seasonal squeeze is particularly acute for industries closely affected by lengthy fee phrases, contract delays and even climate occasions. Building stays one of many hardest-hit sectors, with companies often carrying unpaid invoices from head contractors whereas nonetheless needing to pay subcontractors and suppliers. Transport operators have confronted comparable challenges this yr.
Cyclone-related street closures in Queensland earlier this yr, left one transport operator unable to finish deliveries for weeks, extending fee delays whereas provider prices continued. It’s the type of seasonal disruption that places sudden pressure on cashflow at the moment of yr.
Ketu mentioned conditions like this spotlight how rapidly seasonal disruptions can tighten cashflow. “When occasions like storms, flooding or heatwaves interrupt work for a number of weeks, the hole between funds going out and funds coming in widens in a short time,” he mentioned. “Companies want sufficient headroom of their cashflow planning to soak up these shocks, significantly over summer time.”
“The strongest operators we work with deal with cashflow as a forecast, not an emergency,” Ketu mentioned. “They map out their working capital wants throughout seasons, initiatives and fee cycles, and so they assessment their services nicely earlier than any stress hits. Taking that method provides companies extra management and extra confidence, significantly at the moment of yr.”
Regardless of these pressures, each organisations say the most important hurdle dealing with SMEs isn’t entry to capital, however a lingering misunderstanding of how industrial finance works. Many nonetheless assume non-bank lending is just too expensive, too sophisticated or just for struggling companies – a false impression that may result in worse outcomes. Beckett mentioned many SMEs lack consciousness of the choices accessible. “Some enterprise homeowners nonetheless imagine solely the majors are credible. However within the industrial world, issues aren’t black-and-white. A financial institution would possibly reject a wonderfully good shopper due to inflexible coverage, whereas a non-bank lender can assist them with a construction aligned to their cashflow wants. Schooling is the lacking piece right here,” he mentioned.
A core a part of that schooling hole lies in understanding the position of brokers. “Most individuals know mortgage brokers, however only a few SMEs know industrial or asset finance brokers exist. As soon as they perceive how these constructions assist their enterprise, they don’t simply use them as soon as – they arrive again many times,” Beckett mentioned.
Beckett famous that in current months the creditworthiness of many candidates has really improved, pointing to early indicators of financial uplift. This, he mentioned, is why forward-looking SMEs are centered on strengthening their place now moderately than ready for stress to construct.
Ketu mentioned ahead planning turns into particularly precious heading into summer time. “December and January have a tendency to show any gaps in planning. The extra visibility SMEs have over the commitments they’re taking up, the simpler it’s to handle the pure ebb and circulation of this era,” he mentioned. “A little bit of ahead pondering could make the distinction between beginning the brand new yr below stress or beginning it with momentum.”