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Prospa | Overcoming a cash flow hurdle in small business with Pinky’s Landscaping.

Feb 7, 2019 | Reading Time: 3 minutes

IMPROVING THE LANDSCAPE FOR SMALL BUSINESS WITH ACCESS TO WORKING CAPITAL.

It’s no secret that Australian small businesses are looking to access cash flow to either capitalise on an opportunity or to overcome a short-term hurdle.

Need funds for your small business? Apply here

There’s a common misconception that cash flow issues are associated with businesses that are stagnant, but the reality is it’s often growing businesses who need access to working capital.

Katrina Pink is co-owner of Pinky’s Fencing and Mid North Pave and Landscape, a rapidly growing business that had a cash flow challenge to overcome.

With her top priority making sure that all her staff are paid on time, Katrina ran into trouble when progress payments from large contracts were not received one their due date.

“We have a situation where we had big contracts and sometimes the progress payments won’t come through regularly or on time,” she says.  “We have eight staff that we pay every week on time, which is my highest priority.  But our supplier accounts start to reach their limit when these progress payments don’t come in when expected.”

Katrina’s businesses needed a short-term solution so they could get themselves set for the next contracts while waiting for those progress payments to come through.

Already working with a group of external advisors: an accountant, a business coach, and a finance broker, Katrina sought advice to help with her problem, perhaps in the form of a small business loan.

She hadn’t heard of Prospa, but her finance broker recommended the company as a possible solution.

Prospa offer business loans without painful paperwork or waiting in queues.  You can apply in as little as ten minutes, get same-day approval and receive funding within 24 hours.

For Katrina, this seemed like the path she wanted to take, so once she had thoroughly checked out all the options available to her, she was ready to see what Prospa could do for her.

“I have a really good, long term relationship with our finance broker.  I’d never heard of Prospa but when our finance broker mentioned them, I could be sure they were reputable and would have a solution I need,” she says.

“I called my accountant, just to see what their thoughts were, and they agreed Prospa were the perfect solution for our needs at that time, which was really reassuring.”

And with a simple process, Katrina had access to cash flow through a small business loan which helped her get back on track until the next contract and progress payment were ready.

“Prospa were so easy to work with,” she says. “It was one phone call. One person followed through the whole application process. It was so easy and it was all done over the phone.  Because we applied on a Friday, our funds were in our account on the Monday. I could not believe it.”

While it was a short-term solution to an ongoing problem, Katrina is now committed to working with Prospa to make the most of the opportunities on offer through this new relationship.

“I consider Prospa part of our team now.  We’ve just changed over all of our vehicles and they all need branding and I can see Prospa as an option to get them all branded at once and not tie up my cash flow,” she says.

Most small businesses encounter hurdles, but often they are short term and a stepping-stone to propelling the business forward.

Prospa can help with any number of issues, like small business loans for hospitality businesses who may want to extend or renovate, a hair salon ready to install a new basin or perhaps a plumber wanting to rebrand vehicles just like Pinkys are doing.

Putting a team around you as a small business owner can be really beneficial.  Katrina has an accountant, a business coach, a finance broker and now Prospa.  They all help her to confidently make decisions in her business.

So if you’re after a small business loan to free up cash flow and to take your business to the next step, talk to Prospa today.

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