Cash flow crisis grips Aussie businesses as CommBank and UNSW team up to offer free financial education
A new CommBank survey reveals widespread cash flow challenges for Australian entrepreneurs: four in five small to medium businesses (SMBs) reported financial strain over the last year.
The survey, conducted by YouGov between Oct. 31 and Nov. 5, sampled 507 Australian SMB owners and decision-makers. It highlights factors impacting cash flow: 35% of businesses reported declining revenue, 30% struggle with low cash reserves, and 27% are affected by seasonal fluctuations.
More alarming, however, is that over a quarter of small business owners have had to use personal savings or forgo their own salaries to keep the business running.
Rebecca Warren, executive general manager of CommBank small business banking, said there is always a delicate balance when it comes to business operations.
"It’s not surprising that the economic challenges of the past year have resulted in cash-flow impacts for many Australian SMBs," she said.
“While it’s encouraging to see small business owners take proactive steps to manage their cash flow, some of those strategies – like dipping into savings or not paying themselves a salary – may not be what’s best for the business or the business owner for the long term.”
Because of these challenges, CommBank has partnered with AGSM @ UNSW Business School to develop the free online Cash Flow Management course. The program is intended to help the 2.5 million small businesses in Australia, irrespective of their banking relationships.
“We recognise the vital role small businesses play in the Australian economy and are dedicated to equipping them with the tools and knowledge needed to navigate complex financial challenges,” said Prof. Nick Wailes, lifelong learning dean at UNSW. “This partnership with CommBank demonstrates how working together can address real-world business needs.”
