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How to cultivate your finances

Managing your cash flow can be a real headache, especially in the cut flower and floriculture industry where seasonal trends dictate both the types of flowers that can be grown, and the level of demand in the marketplace.

Cut flowers, being a luxury good, have taken a hit with the aftermath of the global financial crisis leading to massive cuts in consumers discretionary spending. Consumer sentiment has remained subdued ever since and with increased competition from low cost imports, local industry revenues have declined. These adverse trading conditions and sluggish demand combined with rising road freight prices has left little on the table for local growers.

Despite the wilting state of the floriculture industry, it’s not all doom and gloom. As the Australian dollar continues to depreciate, imports have become more expensive. For Australian growers this is great news, as it means less competition for local sales and more opportunity for exports as well.

Supermarket and grocery store sales are also seeing considerable growth, and improvement in production efficiency and plant technology, which has seen a much broader variety in flowers being produced and plant life extension. In order to take advantage of these growth areas, local growers should look to reinvigorate business while competition is less intense, either with additional capital inflows or investment in new opportunities.

No matter what state the industry is in, it will always be tough trying to estimate future demand. With the majority of growers costs likely to be incurred early on in the planting and growth stages, many are left waiting for plants to mature before they can realise the return on their investment.

You might know that in spring your profits always pick up, but you may have to cut back on spending in the winter months to accommodate for this, when really you could be investing in new seedlings or fertilisers to get the most out of your yield. When large wholesalers are making you wait 90 days to get paid, it can put considerable financial pressure on your business. However, financial services are adapting and making it easier to bridge the gap between when you sell and when you are paid.

What if you didn’t have to wait to get paid? What if you could get a quick cash injection without the hassle and personal risk associated with a bank loan? As demand for fresh flowers picks up in the spring and summer months, now is the time to start thinking about cash flow. Whether you want to invest in more plant varieties, better quality fertilisers, new production technology or just need some extra funds to cover day-to-day operating costs, invoice financing can help you achieve these goals.

Globalisation and technology advancements have completely revolutionised the way you can access finance. There are now alternatives for businesses looking for finance, with online platforms and innovative organisations making it faster and easier.

By improving the ease and accessibility of funding through peer-to-peer lending and invoice finance, you can get back to running your business rather than stressing about how to pay the bills. This saves you valuable time and money, so you can regain control over your business and maybe even get a chance to ‘stop and smell the roses’.

Need help cultivating your finances? Contact us today to discuss your options.

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