Businesses need to look at ways to improve efficiency
Companies throughout Australia are facing a constant battle to remain profitable during the ongoing financial crisis.
According to accountancy firm RSM Bird Cameron, firms need to reassess their business banking options in order to increase their chances of weathering the economic storm.
A recent study conducted by National Australia Bank suggested that 70 per cent of enterprises are wary of taking on new loans because they do not want to be saddled with any more debt. This is likely to be having an impact on their ability to expand.
The accountancy experts said that the management of cashflow is of "the utmost importance", as this is a key indicator of business health.
They also added that businesses should be looking closely at their current level of financing.
"Securing new debt facilities or re-financing existing loans has become increasingly difficult," a representative of the firm noted.
"Get to know your bank and give them plenty of notice if you're in need of increased debt funding," they concluded.
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