The traffic management industry constantly keeps you on your toes, from minimising your employees' safety risks to ensuring you comply with regulatory guidelines. So as a business owner, cash flow issues are the last thing you want to encounter.
Cash flow issues arise for several reasons, from long payment terms to a stack of unpaid client invoices. While this may be the nature of your business, a steady drop in cash flow can negatively impact your company's financial health — a common challenge for many industries.
According to Xero, unpaid invoices are the biggest reason SMBs experience cash flow issues, with more than half (53%) of invoices being paid late in Australia. On average, Australian businesses own a whopping $38,000 from unpaid invoices. So how can traffic management companies learn how to fix these cash flow issues and recover from these massive losses?
Traffic management cash flow — current financing options
When cash starts to run dry, it’s not uncommon for traffic management companies to investigate financing options — such as loans, credit cards or debtor financing — to help their business stay afloat. Some common reasons traffic management businesses look to alternative financing are to pay staff, purchase or rent equipment or access a quick cash boost.
One top pick amongst SMBs is small business loans — these provide a large lump sum payment and give SMBs quick access to cash. But just like any other loan product, interest rates and fees apply. Depending on the lender you opt for and the interest rate you are given, the repayments can eat massively into your company’s budget.
Another thing to consider when applying for a small business loan is that your business's financial history will be put under a magnifying glass. And with tighter lending restrictions in place, your application could be rejected if a lender isn’t happy with what they see. Not only does this land you back to square one, but you’ll also have a mark on your credit history.
Business credit cards are another common choice amongst SMBs, due to their convenience and larger credit limits. While you may need to pass a credit check before approval, business credit cards tend to have lower interest rates and fees than loans. While this might sound ideal, you could land your business in trouble if you cannot repay the balance each month.
Credit products like these can give SMBs instant financial relief. However, they can also be full of risk and unmanageable expenses. So how can traffic management SMBs safeguard their assets without throwing themselves into financial ruin? Say hello to Marmalade.
The world’s first invoice payments platform
Traffic management cash flow management has never been easier with Marmalade.
Marmalade is an innovative invoice payment platform that gives traffic management companies quick and easy access to funds from unpaid invoices. Having on-demand access to your cash presents greater opportunities to take your business to the next level. Here’s a closer look at how Marmalade works:
Sign up to Marmalade and create your account
Issue invoices with your unique Marmalade Virtual Bank Account details
Select the invoices you want to cash-in
Get paid within 24 hours
Spend that money however you wish
Over the last few years, many SMBs have missed out on opportunities to unlock their full potential due to cash flow issues. So we decided to create a product that puts the power back into the hands of every SMB.
Marmalade is not a lender or credit provider and is a 100% interest-free and affordable service to get your invoices paid when you want. You'll use our service with peace of mind knowing there are no demanding repayments — once we issue the funds from your eligible invoices, we also absorb all the risk of non-payment.
Another handy feature is our seamless integration with accounting software Xero and Quickbooks — say goodbye to hours spent on mind-numbing paperwork. There are also no security checks to worry about, plus you’ll be given total visibility over the status of your invoices.
Ready to get started? Create your account with Marmalade today and unlock your business's full potential.
Trusted by hundreds of Australian businesses
To stay competitive in the industry, traffic management companies must be flexible with their payment terms and sometimes provide clients upwards of 30 days to pay an invoice — meanwhile, your staff need to be paid weekly or fortnightly. And as a result, these long payment terms can cause significant disruption to your cash flow.
Other factors that may cause cash flow issues include:
- Having to train new employees
- Unexpectedly having to purchase new equipment
- Taking on a bigger job that you’re currently set up to manage
Traffic management cash flow issues are common across different companies. These issues often arise when clients are slow to pay invoices or an unexpected bill. If your business is experiencing cash flow issues, here are a few ways you can get back on track:
- Consider leasing equipment instead of purchasing it outright
- Revisit your budget to find areas you can cut back
- Selling unwanted or unnecessary inventory
From flexibility over your finances to peace of mind knowing you’ll always have a healthy cash flow, Marmalade can help your business stay in fighting shape. Our easy-to-use platform allows business owners to delegate funds as they see fit and get smart about their plans for future expansion.
If you are interested in hearing more about Marmalade, contact our friendly customer service team at (03) 9917 8567 by submitting an enquiry online.
Speak to the Team
For more information on how Marmalade can revolutionise your Traffic Management business with instant invoice payments, please get in touch TODAY!
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