Cruz and Co

We know tax. Let us look after yours.

  • Home
  • About
    • Meet the Team
    • Our Clients
    • Testimonials
  • Services
    • Tax Consultant and Compliance Services
    • Small Business and Sole Trader Accountant
    • Outsourced Accounting Solutions
    • Business Structure
    • Outsourced CFO
    • Working Visa Refunds
  • Resources
    • Tax Refund Process
    • Client Assistant Schedule forms
    • Downloadables
    • Helpful Links
    • Rental Property Cashflow calculator
    • SMSF Tax Refund Process
  • Contact Us
  • Blog

Connect with us

  • Facebook
  • LinkedIn

The Truth About Cash Flow – Can Your Business Handle It?

BY CHRIS SLACK

CashFlowInsightsWhether you are starting out or your business has been established for many years, maintaining appropriate cash flow is a critical success factor.

Here are some home truths when seeking business finance that once accepted will allow you to better understand and preserve your cash for the time you need it most.

Rates are less important

Think of rate as a function of features and term against your security. If you select the wrong term or features the cheap loan might cost substantially more. More generic assets like cars clearly are closer to home loan rates; but failure to appropriately match terms and features will end up in a nasty surprise towards the end of the loan. Speak with people who will educate you about your security position, and outline not just the cheapest rate, but options appropriate and specific to your business. 

Convenience = cost (most of the time)

If you are being offered an additional feature or benefit that seems too good – its because it is. Compare options, be careful in rushing a finance decision offered by a dealer/vendor and discuss with your accountant or team internally the capital expenditure forecast and needs beforehand.

Security is no longer just bricks and mortar

Unencumbered Equipment, Invoices, Debtors, Cash Flow; every lender has a different aspect to a transaction to give the comfort. The key is bothering to make those additional enquiries or utilising an experienced broker with a wider range of options to do this for you and outline alternatives

If an asset is utilised for the purpose of increasing income- by rights, it should be able to be financed

There are plenty of examples of assets that traditionally are harder to finance – fitouts, software and licensing costs, specialised overseas equipment, older assets – they can all easily be financed when you deal with a financier or broker with appropriate options. The lower the resale value generally the higher the rate and shorter the term. Don’t accept a no – ask why and how.

 Your exposure with each lender is critical

If you have over $1M of business lending you likely are being required to provide additional reporting, and may require particular financial ratios or covenants to be met pending on your industry.

There will come a time where you may have to move all exposures with a single lender, however, successfully navigating across different lenders policies may minimise the need for updated financials or additional reports.

Understanding these home truths before seeking finance, and engaging expert advice in sourcing the right options will give your business every chance for success regardless of its stage in the business life cycle.

Source: Dynamic Business

Testimonials

  • Kellie Pincham

    Director
    Automotive Parts Retailing business

    Cruz & Co offer a great professional and friendly service. Ritchie gave me confidence running the business knowing that he was readily available for…

    Read full testimonial
  • Daniel Robey

    I have and continue to recommend Cruz and Co to many businesses and individuals who are looking for a business advisor and accountant that goes over and above…

    Read full testimonial
  • Napoleon Guines

    Director, Travel Company Operations

    Ritchie Cruz and Co are accommodating and have excellent service.

    Cruz & Co have impressed me the most is due to their efficient service.  They are…

    Read full testimonial
  • Regina Wang

    Business Tax – Beauty Salon 

    Ritchie has been managing my tax matters as a sole trader for 2 years+. Always very responsive to my questions and make effort to reply…

    Read full testimonial
  • Zac Fryer

    Director, Import and Distribution Company

    Ritchie Cruz provides and high level of accounting expertise and goes above and beyond in answering any queries we have.

    Read full testimonial
  • Jae Kwon Yoo

    Business Tax – Electrical Contractors

    Ritchie is awesome. He is very professional and responsive and he is always there to help you. He even replies during weekend. He needs some…

    Read full testimonial
  • Jonathan Yeoman

    Director, Technical Design Company

    This is a new business startup and Cruz&Co. have provided great help, guidance and reassurance from the beginning.

    Ritchie has provided us with excellent service and…

    Read full testimonial
  • Vanita Aloda

    Restaurant Owner

    Ritchie Cruz is my Accountant. We have a solid 10 year relationship.

    Ritchie as always provide me with honest and efficient service.

    Is a great communicator, always replies efficiently to…

    Read full testimonial
  • Dr Krish Perananthan

    Cosmetic and Implant Dentistry

    Ritchie was recommended to me by my father and I have also continued to recommend him to my friends. He is reliable, efficient and has a…

    Read full testimonial
  • Jonathan Fambart

    Business Tax – Travel Industry

    Cruz & Co was introduced to me this year and it was the best decision for my sole trader and personal taxation affairs. Ritchie the…

    Read full testimonial

© 2025 Cruz & Co.

  • Home
  • About
    • Meet the Team
    • Our Clients
    • Testimonials
  • Services
    • Tax Consultant and Compliance Services
    • Small Business and Sole Trader Accountant
    • Outsourced Accounting Solutions
    • Business Structure
    • Outsourced CFO
    • Working Visa Refunds
  • Resources
    • Tax Refund Process
    • Client Assistant Schedule forms
    • Downloadables
    • Helpful Links
    • Rental Property Cashflow calculator
    • SMSF Tax Refund Process
  • Contact Us
  • Blog