As Australia heads into 2025, small to medium-sized businesses (SMBs) face ongoing economic hurdles, with nearly 80% reporting cash flow difficulties over the past year.
This widespread issue has prompted CommBank to join forces with AGSM @ UNSW Business School, offering a free course tailored to the needs of these businesses.
Research commissioned by CommBank identified declining revenue, limited cash reserves, and seasonal fluctuations as primary factors affecting SMB cash flow.
Despite these challenges, the majority of SMBs are adopting proactive strategies to stabilise their finances, including expense management, maintaining cash reserves, and diversifying revenue streams.
Nevertheless, a significant 27% of businesses have resorted to using personal savings or foregoing salaries to manage their financial strain, CommBank reported.
Rebecca Warren (pictured above), CommBank executive general manager of small business banking, stressed the importance of effective cash flow management for the longevity and success of small businesses.
“It’s not surprising that the economic challenges of the past year have resulted in cash-flow impacts for many Australian SMBs,” Warren said.
She noted the mixed nature of strategies employed by business owners, cautioning against potentially harmful practices like dipping into personal savings.
To combat these challenges, CommBank and AGSM @ UNSW Business School are offering a free online Cash Flow Management course.
This initiative aims to equip business owners with the necessary skills and tools to manage their finances more effectively.
“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 Nick Wailes, dean of lifelong learning at UNSW.
The course is designed to provide practical advice and insights, helping business owners make informed decisions to enhance their financial resilience.
“The Cash Flow Management course is designed to provide practical insights that empower business owners to make informed decisions and build financial resilience,” Wailes said.
In addition to educational resources, CommBank offers various cash flow solutions to its customers, including Stream Working Capital for accessing funds tied up in unpaid invoices, and a Business Overdraft to manage cash fluctuations and unexpected expenses.
“Our partnership with AGSM UNSW highlights CommBank’s commitment to backing small business, and complements a range of products, services, and tools to help Australian small business thrive,” Warren said.
The Cash Flow Management course is open to all 2.5 million Australian small businesses and can be accessed at the provided online platform, offering flexibility and critical support in an increasingly challenging economic landscape.
Access the free Cash Flow Management course.
Read the CommBank media release.
