Why Isn't Your Bank Balance Getting Any Bigger

Feeling financially frustrated?


If you’re feeling frustrated getting access to finance right now, you’re not alone. The burden of bank processes is affecting a lot of businesses.

By Michael Mekhitarian

Proceeding with caution in uncertain times


We’ve been busy for the past several months… ever since the Federal Election pretty much, and the rise in interest rates that came shortly thereafter.

While the economists are watering down the scaremongering, the fact of the matter is – and we all know it – we’re in an unusual position right now. One that most of us (unless we are in our 90s and remember the war years) have not experienced before.

Right now is not even comparable to the GFC, and the reason, predominantly, is uncertainty. We’re moving out of text-book ‘maybe it is a recession, maybe not’ territory.

And that’s a bit daunting.

Of course, we need to temper the current situation with the Covid-19 pandemic backdrop which was certainly a time of disruption like no other, and while the outlook is not doom and gloom by any means there’s certainly a big element of change and unpredictability which shows no signs of abating.

The lending landscape


It’s simply human nature, in times of uncertainty, to proceed with caution.

And right now this definitely applies to the financial institutions as far as the lending landscape goes.

For businesses looking for funds, or to refinance, particularly with interest rates going up (for now), be warned: The banks are being fastidious about dotting i’s and crossing t’s.

It doesn’t mean that finance is difficult to access, which is good news, but it does mean that the banks are demanding information about the current financial position – your 2021 end of year numbers won’t cut it. They’re asking for the end of 2022.

And they are taking their time with approvals. So, if you need finance, get prepared. Certainly give yourself plenty of time.

We’re here to help you get the paperwork done. Remember, we’re also here to talk over your planning and your funding strategies and help you make decisions that will hold you in good stead now, and into the future.

Many businesses have seen an unprecedented rising of costs in a very short period of time – people, fuel, energy, insurance and transport, to name a few. Getting a handle on these costs, the impact on the business, and how this impact might play out over the next twelve months or so as we adjust are not necessarily easy questions to answer.

We have software that can deep dive into your numbers – forecasting, identifying key areas of profitability and helping you find some solid footing amongst the current unfamiliarity and uncertainty.

We also have a service called Virtual CFO which allows you to outsource your finance function – for many small businesses this releases a big burden. Talk to us if it’s something you need.

It’s absolutely right for businesses to be shoring up the financial foundations … but there’s also a need, right now, to remain flexible, nimble, and to a certain degree, to go with the flow… to be prepared for more change. It’s the nature of the global environment at this point in time.

Relax, it’s only uncertainty


A few years back, Philip Hodgson and Randall White wrote a book called “Relax, It’s Only Uncertainty: Lead the Way When the Way is Changing.”

If you haven’t already read it, maybe take a look over the Christmas break. If you have, maybe it’s time for a revisit. It’s an excellent book for reminding us of the fundamental principles that apply during times of significant change and upheaval.

There’s no doubt that 2022 has been an unexpected year – a year when not only economic uncertainty has come into play, but climate uncertainty too. The floods around the country are a stark reminder that we just can’t control everything.

Recent data breaches too, are a reminder that technology is continually changing, cyber criminals are getting smarter and their scams more sophisticated, and technology is an ongoing investment that just cannot be ignored.

The best thing we can do, to the best of our ability, is to remain fleet-footed – ready to strike when opportunity arises, and yet mindful that the path ahead is still unclear.

If you need our help, make an appointment to spend some time with the team. We can provide advice across tax, accounting, strategy and financial planning.

We’re a small business ourselves, so we understand what you’re going through.