There’s no better time than the present to expand your business. The past few months have seen business conditions rise well above the long-run average, according to NAB’s November 2017 monthly business report.
Successfully growing your company is all about knowing when to take action. While factors such as improved conditions, increased confidence and better payment times are positive across the board, business owners in Australia should seize the opportunity to expand their companies.
Let’s look at the current business outlook in Australia.
Payment times are quickening
Following the inquiry launched by the Australian Small Business and Family Enterprise Ombudsman in April 2017, payment times have been improving throughout the country.
The latest analysis of late payments by Dun & Bradstreet found that as of Q3 2017, the average late payment time for Australian businesses was 12.6 days – down 9.1 per cent from the previous quarter. This significant drop has meant that late payment times are currently at the lowest they have been in six years.
With better odds of timely repayment, business owners can apply for commercial loans with the confidence that they have the cash flow to meet debt obligations.
Business conditions are promising
Conditions rose suddenly and unexpectedly in October 2017, jumping from an index of 14 to 21 in the space of a month, says NAB. As predicted, the sudden boost was quickly unwound in November, but conditions have nonetheless remained well above average.
Construction has stayed ahead of other industries, continuing to reap the benefits of infrastructure spending and a large residential property pipeline. With enhanced trading conditions, booming sectors should waste no time in securing the finance to grow.
Confidence is on the rise
Australian business owners kept their head high throughout 2017, with confidence levels remaining largely consistent with the long-run average, says NAB.
Roy Morgan’s monthly business confidence rating rose to rating of 114.1 in November 2017, with 68.75 per cent of business owners expecting their companies to be financially better off within the next year.
The above findings are in line with Dun & Bradsteet’s Business Expectations index. The survey revealed that business confidence across all sectors has reached its highest since Q4 2015. This positive outlook is supported by the Business Actuals index, which rose 80.6 per cent in a year to be the highest it’s been since March 2004.
Speak to us!
With so much to be optimistic about, it’s no surprise that the shrewdest of business owners would choose now to start growing. Get in touch with our team to find the right finance solution for your expansion today.