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Australian small businesses continue to face barriers, with 80 per cent of SMEs experiencing cash flow challenges.
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CBA launches SME cash flow management course
23 January 2025
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8 minute read
Recent research conducted by Commonwealth Bank (CBA) has revealed cash flow to be a common challenge across most small businesses, with the majority noting a significant impact over the past 12 months.
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A survey commissioned by the bank outlined the key factors impacting cash flow were declining revenue, low cash reserves and seasonal fluctuations.
The results reflected that 85 per cent of surveyed businesses employed one or more strategies in an attempt to manage their cash flow effectively.
Thirty-four per cent of businesses said they had reviewed or decreased expenses, 27 per cent had maintained a cash reserve, 26 per cent had found additional revenue streams and 25 per cent increased their sales and/or pricing.
The survey also showed that 27 per cent of Australian small businesses had dipped into personal savings, didn’t pay themselves a salary, or both.
CBA executive general manager small business banking, Rebecca Warren, said cash flow strategies are important for long-term business success and it is crucial for business owners to have the knowledge to help them apply strategies that are right for them.
“For small businesses, success often hinges on a delicate balancing act as they constantly juggle various aspects of their operations, from managing customers and employees to dealing with suppliers and vendors,” she said.
“It’s not surprising that the economic challenges of the past year have resulted in cash-flow impacts for many Australian SMBs.”
CBA also revealed the launch of a new tailored course aimed at helping small business owners better understand and optimise their cash flow in partnership with the Australian Graduate School Management at the University of NSW Sydney Business School.
The bank said the course would include expert advice, strategies and easy-to-use tools that would empower small businesses to confidently manage their finances.
Warren said the course would hopefully create a difference as effective cash flow was crucial to the success and sustainability of a small business.
“While it’s encouraging to see small business owners take proactive steps to manage their cashflow, some of those strategies – like dipping into savings or not paying themselves a salary – may not be what’s best for the business or the business owner for the long term.”
It was also noted that the cash flow management course came after 53 per cent of business owners had expressed interest in undertaking a course to aid with business management.
The course was set to be short, practical and available free of charge to all 2.5 million Australian small businesses regardless of whether they were a CBA member or not.
UNSW dean of lifelong learning, professor Nick Wailes, said the university’s partnership with the bank demonstrated how working together could address real-world business needs.
“We recognise the vital role small businesses play in the Australian economy and are dedicated to equipping them with the tools and knowledge needed to navigate complex financial challenges,” Wailes said.
“The cash flow management course is designed to provide practical insights that empower business owners to make informed decisions and build financial resilience.”
“By offering this course, we aim to reach as many small business owners as possible, helping them create substantial growth and secure their future in an increasingly challenging economic environment.”
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