Ezypay CEO Trent Brown believes that the Government’s proposed stimulus package will do little to solve the cash flow woes of small to medium enterprises (SMEs).
In working with the SME community on a daily basis, Brown believes that the welfare of 500,000 small businesses will hang in the balance, based on indirect incentives offered to stakeholders that small businesses depend on.
“Having a small business spend more money and take on more debt right now, even with the one-time tax break, shouldn’t be the highest priority.”
He is not optimistic that households will spend the one-off payment as intended, and it will most likely go straight back to the banks for repayment of debt. Furthermore, he believes that the vast majority of spending on infrastructure and housing will go to larger companies, and SMEs will suffer serious setbacks.
“The sector (SMEs) will continue to struggle with the fundamental cashflow management issue of an over-reliance on debt and long repayment terms.”
Ezypay has grown revenues by 20 percent in the last quarter through its work with helping SMEs reduce debt, improve repayment terms, and target positive cash flow. He believes that SMEs need to be given better incentives to improve their cash flow.
“We’re proactively working with SMEs to reduce debt, improve repayment terms and target positive cashflow for the business. A focus on these issues in regard to any government assistance will maximise the chance of SME survival through this terrible period.”
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