Business and Finance

What is Operating Cash Flow? Operating Cash Flow (OCF) is cash relating to core business activities over time. Ideally, the money coming into the business generated from your service offering (i.e. sales) should be more than operating costs.  OCF is used to evaluate the underlying health of the business and to demonstrate the cash generated from normal operations without taking into account secondary sources of revenue, such as investments, finance or the sale of assets. Operating activities explained The various sources and applications of cash included in your OCF are directly related to providing your goods and services to the...

SME’s are the backbone of the Australian economy, and the last few years have especially forced business leaders to think creatively and become more innovative and proactive in the way they deliver their services. Here are 10 practical tips that will help you lead your business through change: 1. Be opportunistic This is a great time to look at your business model and how you’re engaging with your customers. Are there any opportunities within your current product offering to explore new service delivery methods? 2. Balance is key Use your financials to help plan and manage your business cash flow....

In these uncertain times, there is one certainty – that the initial economic shock of COVID-19 will eventually pass. The immediate natural human response to any threat is to retreat and bunker down, and that is even more true when the Government’s guidelines reinforce that. However, even though we are socially distancing ourselves and staying home where possible, this doesn’t mean everything needs to stop. In fact, some business leaders are already planning to position their companies ahead of the competition when the shock dissipates. Some business owners are exploring strategic upgrades to their equipment (new trucks, new cranes, etc.),...

Banks have provided more direction around the information that is required for a business to receive an assistance loan. A key point made by banks is that to receive this loan, the business must meet the bank’s assessment criteria. The eligibility and credit criteria Small and medium-sized businesses with a turnover of less than $50 million Available for new lending only from 6 April 2020, approved by 30 September 2020 The business must be based, registered and operating in Australia The loan must only be used to support your current and upcoming business cash flow requirements, including working capital; liquidity;...

With this ever-changing and evolving environment, we are ensuring we stay across the various measures put in place. If you require any further information or assistance on the below, please get in touch with your Ledge Finance Executive directly, or contact our offices here, and we will do all we can to support you through this. On this page What is a “Small Business”? RBA $90-billion Term Funding Facility Financial Institutions Support Measures for SME’s SME $250k Unsecured Loan Billion Dollar Stimulus Package to Boost the Economy Support for Business Investment Increasing the instant asset write-off Investment Incentive – Tax...

As changing markets create a new lending environment there continues to be a trend of increased risk aversion by mainstream financial institutions (banks/lenders). In this article we explore how businesses can ensure they are ‘fit’ for finance in 2020 and beyond. Prepare your business’ financial statements It is essential for businesses to have up-to-date financial statements as it provides visibility on the overall performance of the business. Having accurate and timely financial statements can also assist in getting your business ‘fit’ for finance. When applying for finance, financial institutions (banks/lenders) require up-to-date financial statements. Getting these organised can take some...