How growing Australian SMEs can spot working capital pressure before it becomes a funding crisis
In our experience at Thane Commercial, business growth doesn’t always feel like success. Sometimes it feels like pressure.
You’re generating more revenue. You’ve secured bigger clients. Your books look better than last year’s.
But something’s still not right.
Cashflow feels unpredictable.
The team is working harder than ever.
And despite the numbers, you’re starting to feel like you’re running uphill.
That’s often because the business has outgrown its current model.
What looks like a cashflow problem is often a deeper issue with working capital structure, timing, or funding fit.
This is especially true for Australian SMEs moving from survival mode into growth.
Here’s how to identify the true pressure points in your business—before they force your hand.
1. Start With Timing, Not Totals – Cashflow Forecasting is Key
When it comes to SME cashflow, the most important question isn’t “How much?”—it’s “When?”
If your outgoings land before your receivables, you’re exposed.
That’s why we encourage every growing business to implement a rolling 13-week cashflow forecast.
This isn’t a complex exercise—it’s practical financial visibility.
It highlights issues before they hit the bank balance.
And it’s the foundation for any reliable business funding strategy.
2. Understand the Cash Conversion Cycle
Your cash conversion cycle determines how quickly your business turns inputs into cash.
It includes:
- Inventory Days (how long stock is held)
- Receivables Days (how long it takes customers to pay)
- Payables Days (how quickly you pay suppliers)
If the gap between what goes out and what comes back in is too large, working capital pressure builds up.
This is where structured solutions like receivables finance or supply chain finance can transform liquidity—unlocking cash already earned but not yet received.
3. Beware of Overtrading – Growth Without Capital is Risky
One of the most common issues we see is overtrading.
This happens when a business is growing—but the capital, systems, and funding support haven’t scaled with it.
More orders, bigger suppliers, new hires—but no change in the working capital framework.
This leads to:
- Tighter cash positions
- Reliance on short-term business loans
- Strain on supplier relationships
The fix isn’t always “more debt”—it’s better-structured business funding, designed to support your growth phase, not just your day-to-day survival.
4. Talk to Your Team – Pressure Often Shows Up on the Frontline
The first signs of strain usually surface in the day-to-day:
- Accounts noticing slower payments
- Operations struggling with delivery
- Finance chasing cash before payroll
These aren’t admin issues—they’re signs your funding model or cashflow structure isn’t keeping up with demand.
Listen carefully.
Because people on the ground usually see the cracks long before the reports do.
5. ATO Debt Recovery is Now Active—and Accelerating
For a while, the Australian Taxation Office (ATO) took a measured approach with SMEs post-COVID.
That’s changed.
We’re seeing a noticeable shift:
- ATO debt recovery is increasing
- Payment plan flexibility is decreasing
- BAS and GST arrears are being followed up quickly
- Superannuation and PAYG debts are getting serious attention
The ATO has returned as a priority creditor—and they are no longer waiting.
For SMEs already feeling cash pressure, ATO action can become a tipping point.
Factoring the ATO into your working capital planning is now essential—not optional.
6. Reassess Whether Your Funding Structure Still Fits
We frequently work with clients who’ve outgrown their existing finance model.
What once worked—an overdraft, a family-backed loan, or a quick unsecured facility—no longer serves a business operating at double the turnover, with longer receivables and growing inventory.
If you’re relying on short-term business loans or personal guarantees to plug recurring cashflow gaps, it’s a sign you need to realign your business funding strategy.
Ask:
- Where is capital tied up unnecessarily?
- Are you funding long-term assets with short-term finance?
- Would a structured facility—like receivables finance—free up trapped working capital?
It’s not always about borrowing more. It’s about making the cash you already have work harder.
Final Word: Find the Pressure Before It Finds You
Running a growing business should feel purposeful—not reactive.
If your cashflow is unpredictable, if ATO pressure is mounting, or if your funding model hasn’t kept pace with your growth, it’s time for a pause.
Not to panic—but to reassess and realign.
At Thane Commercial, we help Australian SMEs identify and solve their real working capital challenges.
With over 60 years of combined experience, we specialise in independent advice, not product placement.
Let’s find the pressure points early—and build a funding solution that fits.
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