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What is a “financial cycle” and how does it affect your business?

Through experience, business owners and operators become naturally attuned to the peaks and flows of the economy. However, when the livelihood of your workers and your family are at stake, it is too great a risk to place complete trust in gut instinct.

So how do business owners and operators plan for and recognise times of growth and recession?

Despite its dense and often complex background, successful businesses will follow the macro “financial cycle” of their environment to inform business decisions and avoid glaring pitfalls.

What is a financial cycle?

Also referred to as business cycles, financial cycles map out the rises and falls in economic activity. Through mapping and analysis, businesses can better recognise symptoms of growth and recession, as well as determine the likelihood of economic shifts.

How are these changes mapped?

During economic expansions, elements such as jobs, production and sales will show keen signs of growth.

Conversely, economic recessions are indicated through rising unemployment, slow growth and stagnating prices.

What does this mean for my business?

While your business might not feed directly into the major players in the economy – such as mining resources – a shaky economic prediction or a rumour on the grape vine can quickly and inexplicably gouge sales from your business.

This is why businesses need contingency plans in place to insulate against economic issues and ensure debts are being paid regularly during times of plenty.

As a business owner, what can I do for my business?

There are a number of options business owners explore and add to their tool-kit to build a stronger foundation:

Preventative Management

To start with, you need to make sure your business only takes on manageable risks.

Qualifying customers can help you avoid serial pests and costly mistakes.

You can make sure your customers are above board by completing a thorough credit check. Specialists like us are able to review a host of important information to give our clients a better picture of their customers:

  • Correct legal identity
  • ASIC reports
  • International reports
  • Litigation investigation
  • Bankruptcy searches, and more

Daily Management

Next, businesses need to understand the nature of their cash flow to better determine how much they can personally invest in growth measures and expansion without overextending.

While it isn’t always possible to self-fund new projects – such as plant equipment for a new contract – there are affordable and manageable options available. Some of the areas we can  help with include:

  • Commercial mortgages
  • Equipment leasing (manufacturing machines through to office fit-outs)
  • Cash flow plans
  • Corporate finance

Issue management

Unpaid debts can crush even the most conscientious business, so to prevent debts from strangling your business plans and finances, enlisting a debt collection agency can help you recover the money you are owed.

Covering the whole spectrum of debt collection, our team approaches each challenge on a case-by-case basis. This means that we can scale the management of your debtors accordingly to promote swift debt repayment.

To ensure the longevity of your livelihood, start planning and managing your business finances before it’s too late. For more information on any of the products and services listed above, talk to the experts and call us today.

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  • I have known the principal of the BOSTON Group (Derryn HARRISON) as well as key staff members (including Ben GOWER) for well over 2 decades and have been using their professional services for myself as well as for Powerhouse Logistics Pty. Ltd. on a regular basis, not only in Sydney but on a national basis.

    At all times BOSTON have been extremely pro-active, attentive, courteous and professional with all matters we threw at them. Their advice has always been extremely sound and commercial and I find them to be a "breath of fresh air" within the legal fraternity and have no hesitation whatsoever to highly recommend them.

    Peter Brueckner

    Powerhouse Logistics Pty Ltd (CEO)

  • Expect A Star has worked with The Boston Group for 10 years. In this time we have appreciated the ongoing support of Boston for all of our collection and legal requirements. Like most businesses cashflow is critical to ongoing success and growth, with Boston we have found a partner who are an extension of our business and play a key part in our cashflow management. The Boston Group bring a level of expertise to our business which is valuable and coupled with their excellent customer service we look forward to continuing to work with them for many years to come.

    Ryan Meldrum

    Former CEO

  • I have been using the services of The Boston Group and their legal entity for over 11 years. During this time I have found their service to be impeccable, delivered with the utmost professionalism and integrity. The vast majority of cases that I have placed with Boston were far from straightforward, requiring legal acumen and delicate handling. Having used all methods available without success to procure payment, I confidently placed these matters into their safe hands. In all instances a successful outcome was achieved.

    Mark Parish

    Credit Manager

  • SNP Security has had the pleasure of working with Boston Commercial Services for the past 11 years. Boston has played an integral part in the continuing success of SNP Security’s low DSO’s, 90 Day % Debt & of course Bad Debts Written Off.

    Amanda Griffiths

    National Administration Manager

Boston Commercial Services is well known debt collection agency in Sydney, Melbourne and Brisbane who has long experience in debt collection.