{"id":52462,"date":"2025-04-15T10:33:17","date_gmt":"2025-04-15T10:33:17","guid":{"rendered":"https:\/\/www.premium-partners.net\/?p=52462"},"modified":"2025-04-17T11:13:46","modified_gmt":"2025-04-17T11:13:46","slug":"smes-and-easter-season-cashflow-plan-properly-and-do-not-put-all-your-eggs-in-one-basket","status":"publish","type":"post","link":"https:\/\/www.premium-partners.net\/fr\/builder\/smes-and-easter-season-cashflow-plan-properly-and-do-not-put-all-your-eggs-in-one-basket\/","title":{"rendered":"SMEs and Easter season cashflow: plan properly, and do not put all your eggs in one basket"},"content":{"rendered":"

This post<\/a> was originally published on this site<\/a><\/p>

<\/p>\n

Planning and forecasting should always be part of running your small business, and this becomes even more important as we approach a busy period of long weekends and public holidays.<\/p>\n

Having all your plans in place can go a long way towards keeping the lights on and the tills ringing, according to SME services provider Lula.<\/p>\n

\u201cThis focus on planning is especially important as we move closer to the Easter Holiday period. Over April, school holidays, public holidays and long weekends could very easily have a direct impact on your ability to trade or to have your invoices paid on time,\u201d Garth Rossiter, Chief Risk Officer at Lula said. <\/p>\n

Garth Rossiter, Chief Risk Officer at Lula <\/figcaption><\/figure>\n

There is an added element of uncertainty this time around, he further said.<\/p>\n

The nation will be waiting to hear whether the proposed increase in the VAT rate has been adopted or not, a move that could also impact the bottom line for small businesses.<\/p>\n

\u201cWhile we find ourselves in an atmosphere of consistent uncertainty, the best option for small business owners is to make sure they understand exactly what kind of trading days to expect over the next few weeks and to take expert advice on how best to plan,\u201d Rossiter said.<\/p>\n

Depending on the sector in which the SME operates, they could either see a booming trade as more people are on holiday and thus likely to visit their shops, or on the flip side you could see suppliers pushing for early payments, or even late payments from clients because they are on holiday.<\/p>\n

\u201cEvery industry has its natural ebbs and flows; for example, the building trade is at its quietest over the summer holidays while retail and tourism are often at their busiest over the same period,\u201d Rossiter added.<\/p>\n

Because of factors including customers who have purchased on credit and are slow to repay; suppliers who demand payments; salaries and rentals that need to be paid; or general operational expenses, the amount of cash or easily accessible funds that a business has to cover these expenses at this point in the year is generally constrained.<\/p>\n

As an alternative lender and member of the South African SME Finance Association, Lula said it is uniquely positioned to help SMEs with minimal delay.<\/p>\n

\u201cOur funding is fast and hassle-free because we know small business owners didn\u2019t start their businesses to spend time on paperwork \u2013 they started them to follow their passion,\u201d Rossiter said.<\/p>\n

Here are five key actions that can help SMEs to manage their cash flow all year round:<\/strong><\/p>\n

    \n
  1. Forecast and plan.<\/b> <\/span>Based on the industry and knowledge of customer habits and business demands, SMEs owners who predict cash flow fluctuations based on trends can ensure their savings and liquidity are maximised for leaner times. During Easter, this planning could have a much shorter-term focus as you navigate the many holidays and long weekends.<\/li>\n
  2. Negotiate smarter terms.<\/b> <\/span>This could vary from offering early payment discounts to debtors and extended supplier payment terms with creditors. Communication is key. The sooner you talk, the more likely you are to find a solution.  <\/li>\n
  3. Leverage financial tools.<\/b> <\/span>Invoice financing, where SMEs can borrow money using their invoices as collateral is an option. Alternatively, Lula offers a management tool with their transactional banking account that is a practical way of keeping track of cash flow.<\/li>\n
  4. Secure funding in advance.<\/b> <\/span>Based on plans and forecasts, it may serve an SME to apply for funding when the business is in a strong position to ensure that there is a buffer when necessary. <\/li>\n
  5. Reduce operational costs.<\/b> <\/span>Whether it is streamlining daily purchases or sourcing better-priced inventory, fat can be trimmed in most businesses. It may be worth re-examining the cost of expenses like banking fees. Lula, for example, offers cost-effective banking solutions in a transactional account that may relieve some pressure. <\/li>\n<\/ol>\n

    Seasonality will affect every business, and it only makes sense to plan for the times of plenty and the times of famine.<\/p>\n

    \u201cWe do not want businesses to take on debt when they are already in distress \u2013 we encourage them to plan and secure funding when their cash flow is strong so that they can scale all year round. SME owners who do not need to worry about cash flow are in a stronger position to explore diversification of their businesses that can lead to further growth,\u201d Rossiter further said.<\/p>\n

    BUSINESS REPORT <\/strong><\/p>","protected":false},"excerpt":{"rendered":"

    Planning and forecasting should always be part of running your small business, and this becomes even more important as we approach a busy period of long weekends and public holidays.Having all your plans in place can go a long way towards keeping the lights on and the tills ringing, according to SME services provider Lula.\u201cThis focus on planning is especially important as we move closer to the Easter Holiday period. Over April, school holidays, public holidays and long weekends could very easily have a direct impact on your ability to trade or to have your invoices paid on time,\u201d Garth Rossiter, Chief Risk Officer at Lula said.\u00a0Garth Rossiter, Chief Risk Officer at Lula There is an added element of uncertainty this time around, he further said.The nation will be waiting to hear whether the proposed increase in the VAT rate has been adopted or not, a move that could also impact the bottom line for small businesses.\u201cWhile we find ourselves in an atmosphere of consistent uncertainty, the best option for small business owners is to make sure they understand exactly what kind of trading days to expect over the next few weeks and to take expert advice on how best to plan,\u201d Rossiter said.Depending on the sector in which the SME operates, they could either see a booming trade as more people are on holiday and thus likely to visit their shops, or on the flip side you could see suppliers pushing for early payments, or even late payments from clients because they are on holiday.\u201cEvery industry has its natural ebbs and flows; for example, the building trade is at its quietest over the summer holidays while retail and tourism are often at their busiest over the same period,\u201d Rossiter added.Because of factors including customers who have purchased on credit and are slow to repay; suppliers who demand payments; salaries and rentals that need to be paid; or general operational expenses, the amount of cash or easily accessible funds that a business has to cover these expenses at this point in the year is generally constrained.As an alternative lender and member of the South African SME Finance Association, Lula said it is uniquely positioned to help SMEs with minimal delay.\u201cOur funding is fast and hassle-free because we know small business owners didn\u2019t start their businesses to spend time on paperwork \u2013 they started them to follow their passion,\u201d Rossiter said.Here are five key actions that can help SMEs to manage their cash flow all year round:Forecast and plan.\u00a0Based on the industry and knowledge of customer habits and business demands, SMEs owners who predict cash flow fluctuations based on trends can ensure their savings and liquidity are maximised for leaner times. During Easter, this planning could have a much shorter-term focus as you navigate the many holidays and long weekends.Negotiate smarter terms.\u00a0This could vary from offering early payment discounts to debtors and extended supplier payment terms with creditors. Communication is key. The sooner you talk, the more likely you are to find a solution.\u00a0\u00a0Leverage financial tools.\u00a0Invoice financing, where SMEs can borrow money using their invoices as collateral is an option. Alternatively, Lula offers a management tool with their transactional banking account that is a practical way of keeping track of cash flow.Secure funding in advance.\u00a0Based on plans and forecasts, it may serve an SME to apply for funding when the business is in a strong position to ensure that there is a buffer when necessary.\u00a0Reduce operational costs.\u00a0Whether it is streamlining daily purchases or sourcing better-priced inventory, fat can be trimmed in most businesses. It may be worth re-examining the cost of expenses like banking fees. Lula, for example, offers cost-effective banking solutions in a transactional account that may relieve some pressure.\u00a0Seasonality will affect every business, and it only makes sense to plan for the times of plenty and the times of famine.\u201cWe do not want businesses to take on debt when they are already in distress \u2013 we encourage them to plan and secure funding when their cash flow is strong so that they can scale all year round. SME owners who do not need to worry about cash flow are in a stronger position to explore diversification of their businesses that can lead to further growth,\u201d Rossiter further said.BUSINESS REPORT\u00a0<\/p>","protected":false},"author":1,"featured_media":52464,"comment_status":"open","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-52462","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-builder"],"_links":{"self":[{"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/posts\/52462","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/comments?post=52462"}],"version-history":[{"count":2,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/posts\/52462\/revisions"}],"predecessor-version":[{"id":52466,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/posts\/52462\/revisions\/52466"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/media\/52464"}],"wp:attachment":[{"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/media?parent=52462"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/categories?post=52462"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/tags?post=52462"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}