Advisers face New Year cash squeeze: Prospa
Non-bank lender Prospa has launched an offer to help mortgage advisers with cash flow issues through the quiet January period.
Tuesday, December 3rd 2019, 9:37AM
The Aussie non-bank, which launched in New Zealand earlier this year, says SMEs, including adviser businesses, often suffer a slowdown in business and late invoice payments during January.
According to Prospa's recent survey in Australia, just 16% of businesses say January is a "busy time of the year". The research suggests 57% of SMEs believe their business would benefit from extra funding in January. Cash flow problems are reported by 40% of small companies.
Prospa wants advisers to plan ahead for the New Year period and consider potential cash flow shortages. It has launched what it calls an "adviser-only offer" this month to help small adviser businesses.
General manager of Prospa New Zealand, Adrienne Church added: "The quieter January period can be a welcome, well-deserved break and a great opportunity to pause and reflect on what the business needs to grow in the next year. However, it can also be somewhat stressful because operating costs for the most part stay the same but there’s less revenue coming in and payments are later than usual.”
She said advisers should plan "for any potential cash flow squeezes during late December and January".
"It can be a challenge managing bills, wages and rent if you’re not prepared for a slow month and planning ahead can help you start the year off right, rather than on the back foot," Church said.
Church added: “Advisers are a vital part of our business – they have been from day one – and supporting their growth and success is a core part of our mission at Prospa. We’re currently supporting partners with an adviser-only offer throughout December to help them boost cash flow and seize new opportunities, and I encourage advisers to get in touch for more info.”
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