The Liquidity Crisis Is Coming!
10 minute watch
Host Brenda Thomson talks with Martin Cattach from Finance for Business about the looming Post COVID Liquidity Crisis.
The economy, particularly in Victoria, will not start to see the full effects Covid-19 on small business until the first and second quarters of next year. This is due to the end of many government support measures, and the most important of these will be Job keeper that has been an immense support for small businesses.
Loss of this support will cause many businesses to fail, and it could be 10% or as high as 25% that will fall into what Martin calls the cascade effect. That is, a company that goes into receivership or uses the new proposed chapter 11 system will affect all the business that supplied that business as they will only receive a percentage of what they are due to be paid. This will in turn threaten their viability, and they could well become insolvent and have to windup, so we get a chain reaction across the economy.
This situation will be further complicated with property values declining and many small businesses will find their banks, who have used property security for business loans, unsupportive and may see their facilities substantially reduced.
That is the looming Liquidity Crisis that businesses will face.
Guest Profile
Downloadable Resources
Martin is a director of Finance for Business and his mission is to provide small business with the Working Capital and the Cashflow they need to enable them to grow and prosper in today’s tough business environment by providing an alternative to borrowing from the Big Banks as well as delivering advice and insights the business needs to grow.
About Better Business for Good TV
By small business owners, for small business owners.
All of our guests are small business owners themselves. They are also experts in their field and share our mission of helping small businesses build better businesses and contribute to a better world.
Previous Episodes
Funding and Finance in Post COVID Australia
26 minute listen Business working capital specialist Martin Cattach from Finance for Business chats with BB4G Co-founder Brenda Thomson about Funding and Finance in Post COVID Australia. Martin talks about: The outlook for SMEs in the finance and funding area for the...
Solvency Central: helping SMEs make informed decisions about their business and financial affairs
16 minute watch Predictions are that up to 25% of small business will in financial trouble next year when government subsidies run out. A small team of finance professionals from within the Better Business for Good Community have been working on a solution SOLVENCY...
Filing Online For Flow
12 minute watch Do you know what poor systems and processes are costing your business? In this episode of BB4G TV Systems Process Architect Kerry Anne Nelson from Operation Verve talks about about filing systems OVERVIEW The average worker spends at least 50 minutes a...
Join the Better Business for Good Community
A community of Australian small business owners helping one another build better businesses.
All while giving back to others and contributing to a better world.
Better Business - Bigger Impact - Together!